Section 8 Company
Section 8 company is suitable for non-profit objective and it may a private limited or a public limited company. As per law in case the proposed section 8 company is a private limited then minimum two promoter is required, however in case it is a public limited section 8 company then minimum 7 person must be the promoters of the company. A ‘Section 8 Company’ is eligible for certain exemptions from provisions of law and a concessional rate of fees. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of seeking a prior license from the central government under section 8 of the companies act, 2013.
Requirements
- No Profit Motive: The companies registered under section 8 of the companies act, cannot distribute profits or assets to its members.
- Minimum Directors: Minimum 2 director required & maximum 15 directors. At least on director of the company shall be resident in India. A person is said to be resident if he or she stays in India for at least 182 days during the preceding financial year irrespective of their citizenship. The days can be in phases.
- Capital Requirement: There is no minimum level of capital prescribed, hence a section 8 company can be incorporated with the capital as required by it.
- Unique Name of Company: The proposed name of the company should not resemble any existing company or LLP. Further you must check the trademark registry to ensure that the name does not match with any registered or applied trademark in India.
- Voting Rights: The voting rights to the members of section 8 company are based on the number of shares, similar to that of any other company.
Documentation
- Identity Proof & address proof of each promoter
- Identity proof & address proof of each directors with photograph
- PAN Card of each director and promoter
- Signed declaration(s) from promoter and director
- Proof of Registered Office of the Company
- Utility bill as proof must be latest with NOC from owner of premises
Registration Process
- Digital Signature: As the application for Company Incorporation is filed online, the process starts with the issuance of Digital Signatures of class two of directors.
- Name Approval: The Company name must be unique and should not be same or similar to an existing company, LLP or a trademark.
- Filling of Incorporation: One single application (spice 32) is filed for incorporation of the company. with the approval of this the Certificate is Issued.
- PAN, TAN: The IT Department allots PAN & TAN, which is mentioned on the certificate of incorporation.
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