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Companies Act Business Setup

How to Incorporate a Section 8 Company?

September 19, 2019 by Team Instabizfilings

Blog Details

Formation of Companies with Charitable Objects (Section 8 Company)

 

Section 8 of the Companies Act 2013 provides for the formation of the companies with charitable objects etc. Section 8 Company, (earlier Section 25 Company of the Companies Act, 1956), is a legal entity for Non-Government or Non-Profit Organizations.

 

Examples of Section 8 Companies

Infosys Foundation, Reliance Foundation, TATA Foundation, Reliance Research Institute, OTC- Over the Counter Exchange of India, etc

 

Objectives of Section 8 Company

It is a type of company which is established with the objective to promote commerce, arts, science, sports, education, research, social welfare, protection of the environment or any other such object. The main purpose of Section 8 Company is essentially to work for the welfare of society in any of the above-mentioned fields and is formed in Public Interest.

Minimum requirements

  • Minimum Two shareholders;

  • Minimum Two Directors (Directors and shareholders can be the same person);

  • At least one of the Director shall be the  resident in India;

 

Minimum capital

  • No requirement of Minimum capital

 

 

Advantages

1) Tax benefits

2) No minimum share capital

3) No need to use title

4) Easy Transfer of ownership

5) A charitable organization or trust registered under section 12 A, allows you to avail tax exemption under section 80G.

 

 

 

Documents Required

 

The essential documents are:

  • Identity Proof: Copy of the Permanent Account Number (PAN) of all the Directors and Promoters (Mandatory);

  • Proof of Address:  Copy of a valid Passport/Driving License/ Aadhar Card /Telephone or Electricity Bill, not older than 2 months;

  • A recent passport size photograph of the Directors/Promoters;

  • In case if the office premises are taken on rent then Rent Agreement or Leave & License Agreement is mandatory;

  • Utility Bills like Electricity Bill/ Telephone Bill of the registered office (Not older than 2 Months)

 

 

 

 

 

Registration Procedure

Step 1: Application for DSC (Digital Signature Certificate)

Step 2: Fill SPICe+ form (Part A – Name availability – You can submit name availability request)

Step 3: Fill SPICe+ Part B form (Company information i.e. pertaining to directors, shareholders, registered office etc.)

Step 4: Application for incorporation in SPICe+ Part B Form and submit it. It will autognerate the AGILE-PRO Form and SPICe+ INC-9 Form

Step 5: Fill AGILE-PRO form for GSTIN (Not mandatory), EPFO, ESIC, Profession Tax Registration (Only for Maharashtra) and Opening of Bank Account

Step 6: Download all the e-forms prepare online and affix DSC on all the e-forms.

Step 7: Attached the require documents with form SPICe+ and upload the e-forms using linked forms facility from the MCA portal.

Step 8: Issuance of certificate of Incorporation

 

   Attachments required

Proof of office address

Copies of Utility Bill (Not older than 2 Months)

Form No. INC –13- MOA and AOA

Form No. INC –14- Declaration by advocate /      practicing CA /    CS / CWA

Form No. INC –15- Declaration by each person    making an          application

 

Post Incorporation

    

  This is done so as the company can raise capital for its smooth      running in the business.

  Bank Account Opening and Remittance of Subscription Money

 


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