SEC 8 COMPANY REGISTRATION

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.

1.Incorporate now.

2.Reserve name

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.