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What is a Section 8 Company Registration?
If any company wants to the promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object then it can register itself under section 8 of companies Act 2013.This kind of company is called as Section 8 company.
The companies registered under section 8 will be treated as limited companies without the addition to its name limited.
Procedure for Section 8 Company Registration
Get DSC(Digital Signature Certificate) and DIN(Director Identification Number DIR 3 form) for the directors of the company which is issued by the MCA(Ministry of Corporate Affairs) by providing information through simple form on LegalDocs.
Approval of Name of the company(Form no. INC 1): Prior to approval of the name of the company, a company name must be reserved with the MCA so that no one else can use it and it doesn’t match with existing companies which will be handled by us.
A licence(form INC 12,13,15) for sec 8 company in India must be obtained before the incorporation of the company. LegalDocs can help you in getting the licence with no hassle.
Registration i.e. incorporation of company through form number INC 7,8,10,9,22,DIR 12,2 at MCA with documents with the registrar of companies is done after above mentioned processes.
Documents Required for section 8 company Registration?
The objects of the Producer Company in India as defined in the companies act 1956,shall relate to all or any of the following: -
- Identity proof of Directors(Aadhar Card, PAN Card etc.)
- Address Proof of Directors(Passport Driving Licence, Aadhar and Bank Statement or electricity bill)
- Digital Signature Certificate if any
- Director Identification Number if any
- Memorandum of Association
- Articles of Association
Current Account Opening
A current account is a type of deposit account that helps the professionals and businessmen to run their business. Businessmen can avail various benefits by Online Current Account such as:
- Unlimited transactions
- Customized features
- Online banking services
Online current account reduces the hassle and provides the benefit to complete the banking process anytime and anywhere.
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- Zero Balance Current Account
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- Free Current Account Powered by ICICI Bank
Eligibility for section 8 company under companies Act 2013
The objects of the Producer Company in India as defined in the companies act 1956,shall relate to all or any of the following: -
- A company must be working and promoting commerce, art, science, sports, education,
- research, social welfare, religion, charity, protection of environment etc.
- A company Intends to apply its profits, if any, or other income in promoting its objects
- A company Intends to prohibit the payment of any dividend to its members
- - A company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government.
- A company registered under this section may convert itself into company of any other kind only after complying with such conditions as may be prescribed by the act.
Documents required for Producer Company Registration
- Identity proof of the director(PAN Card,Aadhar Card)
- Address proof
- Passport size photographs of directors
- Copy of rent agreement if any
- Electricity Bill
- Property papers if any
Benefits of Section 8 Company Regulation
- Registration under Companies act with the registrar of companies makes the company a legal entity.
- Government regulations to manage the profits and losses of the company makes the company trustworthy
- Company is managed by the board of directors through MoA and AoA and not by other bodies.
- Section 8 Company Tax benefits: It is a non-profit organization that is why they are exempted from some provisions of the income tax. They are also given numerous other deductions and other tax benefits. They avail benefits under section 80G of the Income Tax Act, 1961. They also are required to pay less stamp duty as compared to other organizations.
- Sec 8 Company in India can be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organisation, Federation.
- To apply for TAN, PAN and Bank Account
Who Need Product
If a company fails to comply the requirements under this act then central government may revoke the license issued under this act. Also if the affairs of the company are conducted fraudulently or in a manner violative of the objects of the company or prejudicial to public interest then the license can be revoked by the central government.
The company may be wound up under this act if the license is revoked, if central government thinks it is in the public interest or combined with another company registered under this section,a reasonable opportunity of being heard must be given to the company being combined.
If there are any assets remaining after clearing debts and liabilities of the company in question, they may be transferred to another company registered under this section and having similar objects.
If a company makes any default in complying with any of the requirements laid down in this section, the company shall, without prejudice to any other action under the provisions of this section, be punishable with fine which shall not be less than ten lakh rupees but which may extend to one crore rupees and the directors and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five lakh rupees, or with both.
