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How to Start Section 8 Company and Requirements of Online Registration

 What is Section 8 Company?

Section 8 company is a specific type of business entity related to a Non Profit organization. It is registration done under the Companies Act 2013. It encourages improvement in the area of education, arts, commerce, science, sports, charity, environment protection, religion, social welfare and many more.

If the Section 8 Company does generate any profit, the members or shareholders or directors cannot take any profit. The profit amount must be utilized to promote charitable purposes only as it is a non-profit organization (NPO).


 

Steps of Section 8 Company Registration Online

Although Section 8 Company registration processes are quite simple, still some rules and regulations need to follow.

Name Application

To start any company, you need to apply for its name at first. To do that, you need to apply to the Registrar of Companies office or apply online. You can also use the online RUN (Reserve Unique Name) portal to find a suitable name for your section 8 company.

DSC Application

Apply for the Digital Signature Certificate (DSC) for all of the members of the Section 8 Company.

Apply for Incorporation

After the name of the Section 8 Company gets the approval, you need to fill the SPICe+ form within 20 days. Therefore you need to submit all necessary documents with the SPICe+ form and upload it.

Documents are Required for Company Registration

 These are the primary documents are needed for section 8 company registration Kolkata.

  • Name approval Document
  • Digital Signature Certificate for all the members.
  • Director Identification Number for all the Directors.
  • Articles of Association
  • Memorandum of Association
  • Members/Shareholders and Directors identity proof (Voter ID, PAN Card, Aadhar Card, Driving License, passport Copy).
  • Members/Shareholders and Directors residence proof (Gas Connection Bill, Telephone or mobile bill, Electricity Bill, Bank statement).
  • Company office address proof (NOC from the land owner required if it is on rented land)

When you submit these documents, your Section 8 company registration process kolkata is underway.

  • After getting all the process done, you need to wait for 7-15 days for the approval. After your section 8 company is approved, get the Incorporation certificate at first.
  • Next, apply for PAN and TAN of your Section 8 Company. After getting these two important things done, you can now start doing your financial business as Section 8 Company.

Benefits of Section 8 Company

As a non-profit company, Section 8 Company enjoys various kinds of special benefits.

  • Easy rules of Incorporation

Incorporation rules of Section 8 Company are quite simple and easy.

  • Legal Status

Section 8 Companies get the legal status of separate legal entity. The existence of the company does not depend on its members or shareholders. It can exist forever even the members quit or abandon it.

  • No Capital requirement

Unlike other companies (private or public), Section 8 company does not require any minimum share capital.

  • No suffix usage

Section 8 companies do not need to use any suffix (e.g., private limited, public limited) at the end of its name. They are exempted under section 8 of the IT act from the adoption of any title of appendix at the end of the name.

  • Tax exemption

As Section 8 companies belong to the non-profit category, many tax related provisions do not apply to them. They can enjoy tax benefits under section 80G of the Companies Act 1961.

  • No Stamp Duty

At the time of registration, Section 8 companies do not have to pay the stamp duty unlike other types of company incorporation.

  • No RBI Approval is needed

Most of the organizations in India need approval from the Reserve Bank of India to conduct their businesses. But, Section 8 Companies do not have to comply with these kinds of rules and regulations.

 

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