from web site
Section-8 Company is a company that is incorporation for social welfare only. This company is like NGO, trust or society, the main objective is only to do work for the society. The procedure and rules framed for registration of the section-8 company are provided under the companies act. The section-8 company can work to promote commerce, literature, sports, education, research and development, or working in the development of the society, protection of living organism or human life. There are two ways to register section-8 company one is in the form of the private limited and second one is public limited, the difference between these two forms are that in private limited there are minimum 2 persons are required and a maximum of 200 people can be the member but in public limited form minimum 7 persons are required and there is no limit in maximum member of the company. The section-8 company get the exemption from using the word “private limited” or “limited” at the end of the name of the company. There are many other benefits that are available to the section-8 company in many laws like the companies act, tax exemption under the income tax act, etc.
Documents required:
Director/ Shareholder
Registered office address proof
Procedure for Section-8 company registration:
1. Name reservation: The name reservation application is the first step in the process of registration of the section-8 company. The name approval is always depending upon the registrar, and once the name is approved it is valid for 20 days the procedure should be completed within these days otherwise the name will get expired.
2. DSC: All the directors must have Digital Signature Certificate (DSC) before the final step because all the forms can be signed only by the digital signature. Earlier DIN needs to be taken before registration of company but now the DIN is not necessary at the time of registration it can be applied with the registration application and it will be allotted at the time of incorporation.
3. Drafting of documents: After name approval, there are certain documents that shall be drafted and signed by the directors and shareholders. The documents like director consent, Memorandum of Association (INC-13), Article of Association, INC-14, INC-15, etc.
4. Registration form submission: After completion of all the above steps the final form shall be submitted to the registrar for approval. If the registrar is satisfied with the application then he will issue a Certificate of Incorporation and along with that the registrar issue PAN & TAN of the company, License for doing a social activity, DIN of all the directors of the company.
After getting the certificate of incorporation the section-8 company has to do certain compliances like auditor appointment, bank account opening, conducting board meeting, filling of INC-20A, etc. apart from these the company also has to do the annual compliances every year to avoid penalties and other consequences.