Sec 8 Company registration (Non Profit Co.)

Sec 8 Company registration / Incorporation service provided by TaxHills.We have made Startup incorporation services online,simple and easy for India.

Click here to avail Sec 8 Company registration(Non Profit Co.) service online !

Section 8 Company Registration

In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a non-profit company under Section 8 Company of the Companies Act, 2013   . A Section 8 Company is the same as Section 25 company under the old Companies Act, 1956. Under the new Companies Act 2013, Section 25 (as per the old Act) has now become Section 8.

As per Section 8(1a, 1b, 1c) of the Companies Act, 2013, a Section 8 company can be established for the “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”. The Act further states that a Section 8 company can purse the above objects subject to the condition that it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”. In simple terms, a Section 8 company must promote a public cause and the proceeds generated by the entity must solely be used to support the stated public cause(s) only.

DIN for 2 Directors

 MOA + AOA

Customized Incorporation Master File

Bank Account Opening Document Support

Digital Signature for 1 Director

Incorporation Certificate

Company PAN Card

Company Name Approval

New Incorporation Kit

Company TAN/TDS Number

 

MINIMUM REQUIREMENTS FOR SECTION 8 NGO COMPANY REGISTRATION

   Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)

   DIN (Director Identification Number) for all the Directors

   Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)

   DSC (Digital Signature Certificate) for all of the Directors

   The directors and shareholders can be same person

   Address proof for proposed office address

Section 8 Company or a Non-Profit organisation (NPO) is a Company established for promoting commerce, art, science, religion, sports, education, research activities, charity or any other useful social object, provided the profits and donations is applied for promoting only the objects of the company and no dividend is paid to its members or owners.

The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefitted out of those profits.

 

   Many privileges and exemptions are available to section 8 company under Company Law

   Non-application of Companies Auditor’s Report Order (CARO)

   Exemption from requirement of Minimum Paid-up capital

   Registered partnership firm can be a member in its own capacity

   Exemption of Stamp duty for registration

   Tax deductions to the donors of the Company u/s. 80G of the Income Tax

1. What documents required to set up NGO Company in India?

You need to arrange very simple documents of director like photograph, Pan card and one address proof. For more details, please fill the above details 

2. Do I have to have office (commercial) space to start a Company?

No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.

3. Who is Registrar of Company (ROC)?

ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.

4. Do I have to physically visit ROC Office while Setting up company?

No. TaxHills provides complete online Company Incorporation process. All legal documentation and visits are done by TaxHills.

5. Is Private Limited Incorporation to be renewed every year?

No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.

6. What is a DIN?

Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by ROC office (Ministry of Corporate Affairs)
It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.

7. What is a DSC?

A digital signature is electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of Company. Digital Signature cannot be used in physical documents.

8. What is Company name search? Why it is important for new company registration?

Company name is very important part in registration of company. The company name is divided into 3 Parts:
1) Keyword brand name
2) Activity word (i.e. showing nature of business like Software)
3) Business Type word (i.e. Pvt. Ltd. or LLP). For Incorporation of company, the suggested name should not match with existing companies or trademark.

9. What is MOA & AOA of company?

MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.

10. Can Section 8 Company distribute its profit to anyone?

Profit or Income of Non Profit Company can only be used for promotion of the charity work in which it is involved. Even declaration of dividend or distribution of profit to its promoters is not allowed

11. Can promoters of Non profit company can be employed as paid employee of the company?

No. Promoters of Non profit company cannot be employed as paid employee of the company

12. Can a Section 8 company be converted into private limited company?

Yes, Section 8 company be converted into private limited company after taking the approval from ROC.