A Section 8 Company is a non-government organization established with the aim to benefit the society. This company is one of the major types of Non-Government Organizations (NGO).
A Section 8 Company is a non-government organization established with the aim to benefit the society. This company is one of the major types of Non-Government Organizations (NGO). The company must adhere to certain guidelines known as section 8 compliances which must be followed as per instructions of the authority.
What are the benefits of Section 8 Company?
If the individuals follow Section 8 compliances as it is expected by the authority, they can enjoy various benefits. In this section, we will talk about some benefits or advantages of Section 8 Company.
- Separate Legal Entity
- Limited Liability
- No stamp duty
- Tax benefits
- More credibility
What is the registration process of Section 8 Company?
Section 8 company compliances are mandatory requirements followed by individuals who apply for Section 8 registration, after obtaining business license. In this section, we will talk about the registration steps required to obtain Section 8 company license.
Application filing for Name availability
SPICe + form must be filled by the applicant to obtain name for the company. The company name must consist of words like foundation, forum, association, chambers, federation etc. the form is a crucial part that must be filled by the applicant and all the details must be filled accurately.
Preparation of Memorandum of Association (MOA) and Articles of Association (AOA)
All the required details must be filled in both the Memorandum of Association as well as Articles of Association, and both the documents must be submitted to the authority.
Details in the Memorandum of Association include details such as general identification details about the members of the company which includes company’ name, location of the registered office, business objects of the company, nature of business liability of promoters and Name and address of the initial subscribers.
Articles of Association, on the other hand, consist of certain governing aspects of the company. Aspects such as rules regarding holding board and annual meetings of the company are mentioned in this document.
Filing of SPICe plus form
Details required for SPICe plus are PAN or TAN of applicants, details of subscribers and directors, details of stamp duty etc.
Forms and documents which are known as attachments that are required as a part of the SPICe plus are as follows:
- Memorandum of association
- Articles of Association
- Nominee’s consent
- Identity and residential proof of subscribers and nominees
- Identity and residential proof of all the applicants
- Declaration by the members of the company
What are Section 8 compliances?
Section 8 company has certain guidelines as part of the company incorporation. It is mandatory to understand several section 8 compliances in order to follow them in a proper manner.
Compliances / Forms
Form MBP – 1
1st April every year
Form DIR – 8
At least 1 meeting
Form DIR - 3 KYC
On or before 30th September
Form DPT- 3
On or before June 30 of every financial year
MSME Form -1
Form MGT – 14
Within 30 days of Board Meeting
Annual General Meeting
Within 6 months after the end of every financial year
Form ADT – 1
Within 15 days of Annual General Meeting
Form AOC – 4
Within 30 days of Annual General Meeting
Form MGT – 7
Within 60 days of Annual General Meeting
What are the benefits of following Section 8 compliances?
Section 8 compliances benefit the business owners in various ways. This is one of the major reasons why it is crucial for the company members to follow all guidelines of the company. Certain advantages of following Section 8 compliances are as mentioned below:
- Provides better credibility to the company
- It helps in avoiding penalties
- It helps in building trust amongst customers
- It helps in providing loyal customers
What documents are required for Section 8 Company?
The Section 8 company registration process has a significant aspect for it to be successful, submission of important documents. Section 8 compliances require the applicants to submit certain documents at the company registration step.
Documents expected from the applicant are as mentioned below –
- Voter ID
- Passport copy of the applicant
- Driving License
- Passport size photographs of all members
- Copy of the rental agreement
- PAN card of all the members
Section 8 compliances have several forms that must be filled by the company owners in order to avail the benefits of following the compliances and guidelines. Thus, business owners must complete and adhere to all compliances set by the authority.