Procedure to Form a Section 8 Company
Obtain a DSC
All the directors must get a DSC (Digital Signature Certificates) to sign online forms.
Company Name Approval
Choose a suitable name and get it approved by filing SPICe Part 'A'
Draft MOA and AOA
Draft the memorandum of association (MOA) and article of association filling of forms with ROC be signed by the subscribers of the memorandum.
Application for Registration
File the Form INC 12 with ROC to get the registration under the Companies Act, 2013 with the attachments like MOA, AOA, list of directors of the company and declaration by the subscribers.
Documents Required for Section 8 Company Registrations
- Id proof of all the proposed directors & Subscribers
- PAN card of all the directors & Subscribers
- Address proof. It can be an telephone bill, or electricity bill, Mobile Bill or Bank Statement
- Photographs (Passport size) of all the directors of the company
- If the property is rented then NOC and Rent agreement copy.
- Utility bill of the registered office (electricity bill, water bill, gas bill, etc.)
- Form DIR-2
- Digital signature certificate of all the directors
- Both Memorandum Of Association (MOA) And Article Of Association (AOA)
- Statement of income and expenditure
Benefits of a Section 8 Company
Separate Legal Identity: Operates independently from its members, providing legal protection.
Limited Liability: Members have limited liability, safeguarding personal assets from the company’s debts.
Enhanced Credibility: Generally seen as more trustworthy than trusts or societies, attracting more support and funding.
Tax Benefits: Eligible for various tax exemptions and deductions under the Income Tax Act.
Ability to Raise Funds: Can accept donations, grants, and contributions, facilitating financial sustainability.
Regulatory Framework: Governed by the Companies Act, ensuring a structured and transparent operation.
Reinvestment of Profits: Any profits must be used for the organization’s objectives, ensuring focus on social impact.
Simple Registration Process: The registration process is relatively straightforward compared to other non-profit structures.
Capacity to Issue Shares: Can issue shares to raise capital, although it must remain a non-profit entity.
Access to Government Grants: Often eligible for various government funding and support programs aimed at non-profits.