Know the easy ways to register Section 8 Company

Introduction of Section 8 Company

Establishing a company under the term Section 8 of the Companies Act, 2013 marks the beginning of a non-profit organization which is dedicated to social welfare and charity activities. The process involves compliance with the laws, following procedures with digital signatures, obtaining name approvals, drafting the Memorandum and Articles of Association, and acquiring a license under Section 8 of the Companies Act of 2013. The Registrar of Companies (ROC) can grant legal recognition to these companies to operate in a non-profit-making manner, based on a prescribed procedure and submission of the necessary papers. Compliance with regulatory frameworks, adoption of transparency and bottom-line alignment with the organization’s social objectives are essential for the company to be section 8 registered and operate successfully. Seeking help from professionals such as Company Secretaries and legal experts can help to make the registration procedure smooth and in perfect compliance with the law, which empowers the charitable organization to pursue the goal of bringing a meaningful change to society in India and to abide the set legal framework for professionals like the organizations in India. This write-up involves easy ways to register Section 8 Company along with the requirements, advantages, documents, and procedure.

Requirements in Section 8 Company

The requirements of Section 8 Companies for easy ways to register Section 8 Company are as follows:

1. Minimum Members: Section 8 companies must have at least two members, either individuals or corporate entities, of which they will be the registered members.
2. Objective Clause: The purposes of the company must be clearly and only for the benefit of society in the memorandum of articles of association (MOA) which can be art, science, education, social welfare, and/or environment.
3. No Dividend Distribution: Any income or other capital produced should be used to promote the image of the company.
4. Utilization of Profits: The profit earned by a section 8 (non-profit) organization could only be used as a tool to attain its objectives and no member must benefit from the income.
5. Regulatory Compliance: The company should abide by the Companies Act, 2013 and other regulations applicable only to charity organisations.
6. Licensing Requirement: The relevant documents of Section 8 Companies that the Central Government should obtain under section 8 of the Companies Act 2013 shall be procured during the licensing process.
7. Maintenance of Records: The company should have a statutory responsibility to preserve its accounts records, statutory books, and whatever else the law requires.
8. Board Composition: Administrative and management services of a Section 8 company shall be monitored through the rules and regulations of the Companies Act 2013 which are to be amended. There must be always a minimum of two members on the Board.

Advantages of Section 8 Company

Section 8 companies, also known as non-profit organizations, offer several advantages that make them an attractive choice for entities with charitable or social welfare objectives along with the easy ways to register Section 8 Company as follows:

1. Charitable Objectives: The organizations that qualify to be the Section 8 businesses are those developed to see to it that activities for instance art, science, education, social welfare; and ecological conservation are being carried out; therefore, the motive of such activities is not for profit making. This enables them to concentrate all their mind and effort on serving the country.
2. Limited Liability: Similar to other forms of corporations, the shareholders of a limited company are protected from debts and obligations of this company and are liable for it on a scale.
3. Tax Benefits: Section 8 company does not need to pay tax on the revenues directed to the charity goals. This approach enhances the availability of revenue, which is dedicated to the performance of social needs.
4. Credibility and Trust: A company that is registered under some chapter of the Companies Act is generally considered a reliable and trustworthy company, which means that the company may get donations, and volunteers and collaborate with both governmental and non-governmental organization(s).
5. Perpetual Existence: Legally defined succession is the main feature of Section 8 companies, which keep on applying their goals despite the change in membership or director.
6. Access to Grants and Funding: Section 8 organizations will be listed among the non-profits, through which government bodies, company structures and philanthropist organisations will have the possibility for grants, donations and funding which will be used for the social cause.

Documents Required for Section 8 Company

Under the Companies Act, 2013, the following documents are required for registration of a Section 8 Company (Non-Profit Organisation) in India the easy ways to register Section 8 Company are as follows:

1. Memorandum of Association.
2. Articles of Association.
3. Declaration by Promoters.
4. Consent of Directors.
5. Identity of directors (ID cards or ID proof of Aadhar or Passport).
6. Director’s Driving License, Voter ID.
7. One of the most important developments in corporate governance is the emphasis on the PAN card or personal director identification number of the directors.
8. An official-sized photo of the Board.
9. The place of business at the residence of the applicant must be presented.
10. The approval of the head office (i.e. NOC of the head office).
11. Adaptation of the Board Resolution by Voting, in Favour of Authorisation.
12. Declaration of Compliance.
13. Declaration of non-conviction.
14. Proof of the tax return and tax filing.

These are some of the documents that are mostly needed while preparing to file the Section 8 Company (Non-Profit Organization) forms in India for easy ways to register Section 8 Company.

Procedure for Section 8 Company

Under the Companies Act, 2013, the following steps are required to be followed for registration of a Section 8 Company (Non-Profit Organisation) in India which includes easy ways to register Section 8 Company as follows:

1. Issuance of Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) to all prospective directors if desired.
2. A suitable corporate name by filing a corporate name approval request with the Registrar of Companies (ROC).
3. Implementation of S.8 (1) Formulates the company memorandum and articles of association by the provisions of S.8.
4. Submit your application under the permit, you will get the required documents sent to the ROC in Section 8.
5. Formulation of required documents such as MoA and AoA should be submitted to ROC along with other supporting documents and information.
6. The ROC, as prescribed in its charter, pays the prescribed fees, and obtains a “Certificate of Incorporation.”
7. Prepare PAN and TAN for the income tax component of the company.
8. Convene board meetings to elect office bearers and complete statutory duties.
9. Collect central government licenses and registration forms for non-profit organizations.
10. Monitor the annual filing requirement and ensure compliance with the rules and regulations followed by Section 8 companies in India.

Conclusion

Registration as a limited liability partnership (LLP) under the Companies Act, 2013 is an important step in the process of formation of a non-profit organization that supports the interests of society and charitable activities Follow rules, it is a digital signature, approve names, draft memorandum and articles of association including the procedure for obtaining a licence. Registrar of Companies (ROC) has the statutory authority to acquire these companies operating for marginal profit in a particular order and issue documents relating to qualifications. It is very important that the company complies with the regulatory framework, initiates transparency, and aligns its bottom line with the social mission of the organization so that the company obtains a Section 8 registration. The involvement of company secretaries and lawyers will create equity in the registration process with legislation providing legal support for the charitable organization to compete with others and improve the raising of meaningful donations so social changes are consistent. It is recommended to seek professional help for the easy ways to register Section 8 Company.