section 8 company Registration
A Section 8 business is defined by the Companies Act as one that promotes the arts, commerce, science, research, education, sports, charity, social welfare, religion, environmental protection, or other similar aims. These firms likewise utilize their income to advance their mission rather than paying dividends to its members.
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What exactly defines the Producer Company?
INTRODUCTION
A Section 8 corporation is a firm that is registered for charitable purposes such as the promotion of arts, commerce, science, education, sports, environmental protection, religion, charity, and so on. The Act does not ban the corporation from making a profit by advertising it as a non-profit organization, but it does restrict it from dividing profits among members. This states that all of the company’s income or profit from any activity must be used for the charity purpose for which it was registered.
The charity corporation is registered under Section 8 of the Companies Act of 2013, giving it special status because of its objectives. Section 8 corporations benefit from a number of exclusions and relaxations that other sorts of businesses do not.
ADVANTAGES
The advantages of registering a farmer-producer group
Exemptions for taxation and compliance
With its registration under Section 8 of the Companies Act, it gains a different status from other entities. Not only does the corporation benefit from tax breaks, but contributors can also claim exemptions for their donations. Aside from tax exemption, the corporation is exempt from the application of various compliance-related rules.
Separate legal identities
Being registered as a corporation gives it a distinct identity independent from its members. As a result, it can possess and maintain assets and obligations in its own name, regardless of its relationship with the members. The change in members or directors has no effect on the entity's existence, assets, liabilities, or rights and duties.
Limited Liabilit
A business registered under Section 8 has limited responsibility for its members. The members' obligation is restricted to the amount of capital subscribed and unpaid. The losses and liabilities do not generate a charge against the personal property of members or directors. This allows the promoters to freely operate the non-profit organizations.
There is no corporate title.
Although the corporation benefits from being a corporate entity, it is not labeled as such. The suffix "Private Limited" or "Limited" is not required after the company name. This exception is offered so that third parties focus their attention on the company's mission rather than its status, presuming it is a profit-making organisation.
A LIST OF DOCUMENTS
Documents necessary to start a charitable company
Photograph
Current passport-size photos of directors, nominees, and shareholders
PAN Card
PAN Cards for Shareholders and Directors. Foreign nationals must produce a current passport.
Identity Proof
Directors' and shareholders' driver's license, passport, or voter ID
Address Proof
A copy of the directors' and shareholders' most recent bank account statement, telephone bill, or electricity bill
Business Address Proof
The telephone and electricity bills for the Indian registered office location
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
If there is one, the registered office's rent agreement should be submitted.
Statement of income and expenses
Estimated Income and Expenditure Statement for the Next Three Years
Company Name Formulation in Section 8
Special Name
Essentially, it establishes the company's brand and, ideally, is a newly invented term.
Business Item
The company's business activity should be implied by the second portion of the name.
Type of Constitution
The suffix "Private Limited" must be included at the end of the company's name.
Suffix
Its name must end with a suffix such as Foundation, Forum, Federation, Chambers, Association, Council, etc.
ACTIVE REGISTRATION ONLINE
In three simple actions, you may register your corporation.
1. Respond to Quick Questions
- Completing our questionnaires takes less than ten minutes.
- Give the necessary documentation and basic information for registration.
- Use safe payment gateways to process payments.
2. Relax While Our Team of Experts Completes Everything
- Dedicated Relationship Manager
- Acquisition of Electronic Signatures (DSC)
- Name Reservation Application
- writing of documents, such as the AOA and MOA
- The incorporation certificate
- Application to award license under Section 8
3. Your Business Is Listed
- It just takes 25 working days. *
THE ACTION
Section 8: Company registration method
Days 1
- Application for Certificate of Digital Signature
Days 2 - 4
- Verifying the availability of the name
- Application for Name Reservation under “RUN“
- Reservation of Name
Days 5 -7
- Drafting of MoA, AoA, and other necessary papers
- Payment of Stamp Duty
- Notarization of needed documents.
Days 9 - 10
- Application to award a license in form INC-12.
- Government approval processing time
- Form INC-16, license under section 8
Days 9 - 10
- Filing an application for business registration.
- Application for DIN Allocation
- Application for PAN and TAN of the firm
Days 11 - 12
- Government processing time
- Certificate Of Incorporation
Common Queries
- There isn’t a set minimum capital requirement for nonprofit companies. The quantity needed to launch and operate a firm may be introduced by the promoters.
- The company’s name ought to be developed in accordance with the naming criteria. A maximum of two distinct names may be submitted for a name reservation using the “RUN” web form. In the event that the names do not meet the requirements, the registrar may request that the application be resubmitted under an alternative name.
- The promoters must apply for the aforementioned approval from the Central Government using e-form INC-12. The form is supported by the company’s Memorandum of Agreement (AoA), statements from the promoters, an expected statement of revenue and expenses for the following three years, etc. The approval letter is sent in form INC-16 if the application is accepted.
No, the promoters do not need to be present in person to complete the registration procedure; it is all done online. All of the information and papers may be submitted to our portal or sent by mail.
- Yes, after receiving a Director Identification Number, a foreign national, or NRI, is eligible to serve as a director in a Section 8 company. Nonetheless, a minimum of one Director on the Board of Directors needs to be a resident and an Indian citizen.
- The abbreviation for the Section 8 corporation is NGO. NGOs, on the other hand, may register as various commercial structures, such as societies, trusts, etc.
