Section 8 Company(NPO) |

The idea of incorporating a non-profit making company in India is not a new term as it has been in the business community since ages. Section 8 company pertains to a established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members
As far its structure is concerned, it is much alike a trust or society as it is registered under the Central Government’s Ministry of Corporate Affairs. A Section 8 Company enjoys many privileges and exemptions under Company Law.

A Non-profit Organization is a Company which

Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
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

We, at FINLEGALFORTE, make it easy for our clients to incorporate a Section 8 company by providing all necessary legal and professional support in respect to incorporation and business management. Our highly talented legal professionals are experts in lending you full support to help you realize your business dream.

PREREQUISITE TO FORM SECTION 8 COMPANY

DOCUMENTATION
Firstly provide all the required documents mentioned below.
DIGITAL SIGNATURE CERTIFICATE (DSC – CLASS – II)
The Second stage is to Apply for DSC. DSC is required for filling the forms of company registration electronically to Ministry of Corporate Affairs. We obtain it from (certifying agencies.).
DIN (DIRECTOR IDENTIFICATION NUMBER) The Third stage is to apply for DIN. The Unique Number allotted to the Directors of the company which remains valid for whole life of the director and is required to become director of any company.
NAME AVAILABILITY
The Fourth stage is to apply Name of the company. Most Crucial aspect of company registration is the name approval of the company.
DRAFTING OF MOA & AOA
The Fifth step is start after the name of the company is Approved the Memorandum of Association and Articles of Association of the company is drafted, the last page of the MOA and AOA is referred as subscriber sheet which need to be filled in by the promoters in their own hand.
LICENSE UNDER SECTION 8 FOR NEW COMPANIES WITH CHARITABLE OBJECTS
A person or an association of persons desirous of incorporating a company with limited liability under sub-section (1) of section 8 without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, shall make an application in Form No.INC.12, INC 13, INC 14 & INC 15 along with the prescribed fee, to the Registrar for a license under sub-section (1) of section 8.
CERTIFICATE OF INCORPORATION
If after filling the Requisite forms for incorporation with the Registrar of Companies along with fees, ROC is satisfied with the contents of the documents filed, ROC will issue the License in form No. INC.16 (Certificate of Incorporation) under section 8(1) read with rule 19 of Companies (Incorporation) Rules, 2014. Such company registered under section 8 shall enjoy all the privileges and be subject to all the obligations of limited companies.

Documents required for registering an One Person Company

1. Memorandum of Association
2. Articles of Association
3. Affidavit and declaration by first Subscriber(s) and director(s)
4. Proof of registered office
5. Copies of utility bills not older than two months
6. Copy of approval in case the proposed name contains any word(s) or expression(s) which requires approval from Central Government.
7. If the proposed name is based on a registered trademark or is subject matter of an application pending for registration under the Trade Marks Act, then it is mandatory to attach the trademark registration certificate or trademark application copy.
8. NOC from the sole proprietor/partners/other associates/existing company.
9. Proof of identity and residential address of the subscriber.
10. Proof of identity and residential address of directors.

EASE OF FORMATION

A Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. Registered partnership firm can be a member .

Limited Liability

The greatest benefit of Section 8 Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that.

Separate Legal Entity

This is the most prominent quality of a Section 8 Company. It refers to the statement that company and its members are completely distinctive. The biggest advantage of a section 8 company is that its identity is distinct from that of its members.

Greater Flexibility

A Section 8 company is required to perform lesser legal formalities as compared to a public company. It enjoys special exemptions and privileges under the company law. A company is a separate person having its own rights & Obligations.

Perpetual Succession

Death, insolvency and insanity etc of any of the member does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members.In case of death of the owner or transfer of shares

Tax Benefits

A Section 8 company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets. Your business won’t get affected. There will be no effect on firm’s

Steps to Get Process

4 Steps to get process. We'll email you at different points in the process or you can check the status of your order anytime in our Online Status Centre.

Step 1

INC-32 must be accompanied by supporting documents including details of Directors & Subscribers, affidavits, declaration, MOA, AOA, identity proof, address proof etc.

Step 2

The MOA and AOA are provided differently in electronic form e-form INC-33 and INC-34 respectively. In INC-33 you have to mention the object of the company and in INC-34 you have to provide for pre-drafted clauses of AOA.

step 3

The subscribers and the witness of MOA and AOA will affix their Digital Signature on the e-form INC-33 and INC-34. Also, the date of signing the MOA & AOA will be the date of affixing the DSC.

Step 4

Under this process, even if you have applied the name in form INC – 1, still can incorporate a company through e-form SPICe INC-32.

Apply for Sales Tax / Service Tax Registration based on the nature of Business.
Filing ADT-1 for Appointment of First Auditor of the Company within 1 Month of Incorporation of Company and in case the Board fails to appoint such auditor, it shall inform the members of the company, who shall within ninety days at an Extra Ordinary General Meeting appoint such auditor and such auditor shall hold office till the conclusion of the first Annual General Meeting.
Filing Income Tax Return of Company on or Before 30th September every year
To maintain proper Books of Accounts
Get your account books Audited Every Year.

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