SEC 8 COMPANY REGISTRATION
Updated: Nov 12, 2021
A company is referred to as SEC 8 COMPANY if its objective is not to make profits rather it has been formed for charitable purposes as well as to promote science, art, culture etc. It is registered as a Non-Profit Organization. This type of company promotes public welfare and amount generated is used for public causes.
BENEFITS OF REGISTRATION-
Ø Assessment allowances to the donors of the Company u/s. 80G of the Income Tax Act.
Ø Section 8 Companies can be shaped with or without share capital, on the off chance that they are framed without capital, the vital assets for conveying the business are brought in form of donations, subscriptions from members and the public.
Ø Exempted from payment of stamp duty.
Ø Transfer of ownership is easy.
Ø Section 8 Companies are not needed to add the addition Limited or Private Limited toward the finish of their name.
Ø A Section 8 Company has greater believability when contrasted with some other Non-profit organization structure like Trust or Society.
DOCUMENTS REQUIRED FOR REGISTRATION-
Ø Copy of PAN card of the directors/promoters.
Ø Copy of (Voter ID/Aadhar Card/DL/ Passport) as an ID Proof
Ø Copy of (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement) as an address proof.
Ø Also, the NOC from the landlord as well as his/her identity and address proof (if the property is rented)
Ø Latest passport-size photographs of the directors/promoters.
PROCEDURE FOR REGISTRATION-
1.Click here to start the process. Enter details and log in. Under MCA services select SPICe + and click on NEW APPLICATION.
2.FILLING SPICE+ A FORM
Enter the details along with the main division activity. Click here to know which division your business falls under.
Selection of Name and Filing for Name Approval- It is mandatory that the name of a section 8 company includes words like foundation, forum, association, federation, confederation, council, electoral trust, and like, etc.
Once you are done with the above steps click on auto check, you should get a green box on the top stating that the name applied for is unique, then click on save and then submit to move to the next step.
You should get a confirmation alert; you will have two choices.
If you want to just reserve your name for the future and not incorporate now, then click on option 2 else click on option one.
Once saved and submitted click on PROCEED FOR INCORPORATION when a confirmation alert arises.
3.FILLING SPICE+ B FORM
Ø Enter the details with respect to the structure of the company including authorized and paid-up share capital and click on save and continue.
Ø On the next page enter the details of the address of the registered office then click on "Save and Continue".
Ø DIN is a Unique Identification Number allotted to an individual who is appointed as a director of a company. If you have never been a director of a company before you would not have a DIN, you can apply for it through this form. just enter the No. of persons who are going to be a part of the company not having a DIN in the field as shown below. Click on SAVE AND CONTINUE.
Ø On the next page, basic details of each Director are asked, enter the basic details.
For each Member of the company, you will have to enter the number of shares subscribed and the total amount of subscribed capital. Taking all members into account this number must be equal to the paid-up capital as mentioned in SPICE+ Part A.
Ø On the next page click on the "Prefill button" and then click yes on the question asking whether Stamp duty is to be paid online.
Ø Next you will have to enter your PAN and TAN area code (both different) on this page. Click on the link for the respective codes.
Ø Documentation- Make PDF of following documents:
PDF 1 – MOA (INC- 13) Click here for format https://ca2013.com/returns/inc-13/
PDF 2 – AOA
PDF 3 – Electricity Bill
PDF 4 – All directors ID and Residential Proof (Single PDF)
PDF 5 – Director 1 ID and Residential Proof
PDF 6 - Director 2 ID and Residential Proof
PDF 7 – INC 14 (https://www.webtel.in/Image/INC-14.pdf)
PDF 8 – INC 15 (https://www.webtel.in/Image/INC-15.pdf)
PDF 9 – Other Documents
o NOC from owner (https://formatsplanet.com/no-objection-certificate-landlord/)
o DIR 2 Consent letter by all directors (https://proformats.co/2015/06/24/dir-2-format-for-director-appointment/)
o Projected income and expenditure account
o Grounds for making application.
Attach the documents and click save and continue.
Ø On the next page, you will have to provide a declaration by checking all the tick boxes. Each company incorporation requires verification by a Chartered Accountant, the details of the Chartered Accountant must be provided at the bottom of the declaration and on the next page. Click on "Pre-scrutiny" and once it's successful click on "Submit".
4.FILLING AGILE FORM
AGILE-Pro is the one-stop form for registration of Goods and services tax Identification number, employees state Insurance corporation registration plus Employees provident fund organization registration, Profession tax Registration, and Opening of a bank account.
On the next page, click on the fill button next to AGILE pro.
Ø Fill out basic details on this page, most of which is prefilled. then click on the "save and next" button.
When do we have to apply for GST Registration?
Companies are mandatorily required to register for GST when their turnover during the year crosses Rs. 40 lakhs when they are selling goods, or Rs. 20 lakhs when they are providing services. If you are planning to provide goods/services to a state other than the one in which you are incorporated (inter-state sale) you will have to mandatorily register for GST irrespective of your turnover. There are many other cases where you would be required to obtain GST registration even though the above-stated conditions are not satisfied.
Ø On the next page fill out the nature of your business from the dropdown option in each field and then continue to the next page.
Ø On the next page fill out the No. of directors that are a part of the company and enter any one director's details under Section "A)", Once you have entered all the details including passport size photograph and mobile no. Click on the "Send OTP" and enter the OTP that you received on your phone and the email that you have entered.
Under the section "B)" you will have to enter the details of the other Directors.
Select the police station under whose jurisdiction the company is being incorporated in
Ø Upload the same proof that was uploaded in the SPICE+ Part B form. These proofs should be uploaded only for the director whose details were given separately above under Section "A)". For "Specimen signature", the Director mentioned under Section "A)" should sign on a piece of paper, scan and upload the same under this field.
Once done with the above three forms download them.
Before uploading and paying government fees you will have to upload a digital signature.
The authorized director will sign both spice part B and agile form.
Now login and click on UPLOAD E-FORMS and select NORMAL FORMS and upload all three forms in the same order.
SRN is generated. Make note of the same.