Section 8 Company
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Section 8 Company
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Minimum Requirements for Section8 Company:
- Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)
- DIN (Director Identification Number) for all the Directors
- Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
- DSC (Digital Signature Certificate) for all of the Directors
- The directors and shareholders can be same person
- Proof for the proposed office address
Documents Required for Section 8 Company:
- Copy of PAN card
- Copy of Aadhar card ( both sides )
- Copy of Voter ID / Driving License / Passport
- Copy of bank statement ( not older than 2 months )
- Passport size photo
- Valid email and mobile number
- Copy of Utility Bill ( electric / gas / water / telephone ) – not older than 2 months
- Copy of NOC if premises on consent
Eligibility Criteria
An Individual or HUF or limited Company is eligible to start a Section- 8 company registration in India.
Two or more person who will act as a shareholder or Director of the company should fulfill all the requirements and compliances of the Section 8 Company registration.
At least one of the directors shall be a resident of India. However, a firm may be a member of the company registered under this section.
The objective should be the promotion of sports, social welfare, the advancement of science and art, education and financial assistance to lower income groups.
The surplus generated must be used for meeting the principal objective of the section 8 company only.
Founders, members, and directors of the company cannot draw any remuneration in any form of cash or kind.
No profit should be distributed among the members and director of the company directly or indirectly.
The company should have the clear vision and project plan for the next three years.
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A minimum of two people are required to register a section 8 company in India.
StartUp Kro can incorporate a Section 8 Company for in 15-20 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please ensure you have all the required documents prior to starting the registration process.
In Feb 2020, MCA, i.e. Ministry of Corporate Affairs, came up with an e-form, viz SPICe form, that aims to simplify the incorporation process significantly. This Form has overcome the intricacy of the erstwhile incorporation process that also entails massive paperwork.
An NGO intending to serve a charitable purpose in India could be registered under society, trust, and section 8 company. A charitable purpose is defined u/s 2 (15) of the IT Act.
The cost factor involved in trusts is considerably minimal when contrasted with entity u/s 8 of the company Act. Section 8 companies have limited access to government-driven subsidies.
The auditor is appointed in the purview of Section 139 of the Companies Act. Every first auditor of Section 8 entity is to be appointed within thirty days from the incorporation date. The auditor can be a person or a company. The auditors also dig down the financial filings of the company.
An address in India where the registered office of the company will be situated is required. The premises can be Commercial/ Industrial/ Residential where communication from MCA will be received
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