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Section 8 company is a company registered under the company’s act 2013 as a limited liability company which comprises of:
a.the object of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment etc.
b. apply its profit, if any, or other income in promoting its objects,
c. Non- payment of dividend to its members.
• An Individual or HUF is eligible to start a section 8 company.
• Two or more directors or shareholders to fulfil all the requirement and compliances.
• One director who should be resident of India.
• No profits should be distributed among the member and directors directly or indirectly.
• Founders, directors, members cannot withdraw any remuneration in form of cash or kind.
Numerous Tax exemptions are provided to section 8 companies, specifically to the donors who are contributing to section 8 companies, they can claim the tax exemption against the donation.
There is no prescribed limit for the minimum capital requirement. The capital structure can be altered at any stage.
It is exempt for the payment of stamp duly as applicable in case of private or public company.
A section 8 company holds its own identity separate from its owner. It also has perpetual existence.
A section 8 company due its strict compliances as regard to functioning has a more reliable image in comparison to other legal structures.
unlike private limited or public limited a section 8 company does not require to use a suffix to its name.
Documents required for applying DSC of the Director:
• ADDRESS PROOF
• AADHAAR PROOF
• PAN CARD
• EMAIL ID
• PHONE NUMBER
• APPLY FOR DIN IN SPICE FORM ALONG WITH NAME AND ADDRESS PROOF OF DIRECTOR.
• FORM DIR 3 IS FOR EXISTING COMPANIES. DIR 3 IS NOT NEEDED TO BE FILLED SEPERATELY.
• DIN FOR NEW COMPANIES CAN BE APPLIED WITHIN THE SPICE FORM FOR UP TO THREE DIRECTORS.
• FORM INC 12 IS FILED FOR THE GRANT OF LICENSE TO OPERATE AS SECTION 8 COMPANY
• INC 12 IS FILLED ALONG WITH:
INC 13: MEMORANDUM OF ASSOCIATION.
DRAFT ARTICLE OF ASSOCIATIONS.
INC 15 FOR THE DECLARATION BY EACH SUBSCRIBER TO MOA THAT THE DRAFT MEMODRADUM IS DRAWN UP WITH THE CONFORMITY OF SECTION 8 COMPANY.
ESTIMATED STATEMENT OF INCOME AND EXPENDITURE FOR THE NEXT 3 YEARS.
LIST OF PROMOTERS AND DIRECTORS OF THE COMPANY.
FOLLOWING DOCUMENTS NEED TO BE SUBMITTED TO MCA:
RESERVE THE COMPANY NAME IN FIRST PART OF SPICE + FORM.
MOA AND AOA DULY SIGNED BY ALL THE SUBSCIBERS
DECLARATION FROM ALL THE DIRECTORS AND SUBSRCIBERS THAT THEY ARE NOT GUILTY OF ANY OFFENCE.
DECLARATION IN FORM INC 14 AND FORM INC 15 FROM A CHARTERED ACCOUNTANT AND EACH PERSON MAKING THE APPLICATION.
ADDRESS OF THE CORRESPONDENCE TILL THE REGISTERED OFFICE IS OFFICIAL.
ADDRESS AND IDENTITY PROOFS OF ALL THE SUBSCIBERS OF MOA AND FIRST DIRECTOR OF THE COMPANY.
PASSPORT SIZE PHOTOGRAPHS OF ALL DIRECTORS
COPY OF RENTAL AGREEMENT IN CASE THE REGISTERED OFFICE IS RENTED.
FILE FORM INC 22 FOR THE ADDRESS OF THE REGISTER OFFICE WITHIN 30 DAYS OF THE INCORPORATION OF THE COMPANY.
FILE FORM DIR 12 WITHIN 30 DAYS FROM THE DATE OF APPOINTMENT OF DIRECTORS.
• ON VERIFCATION THE REGISTRAR OF COMPANIES (ROC) WILL ISSUE CERTIFICATE OF INCORPORATION IN INC-11 IN 3-5 DAYS.
• AFTER RECEIVING INC -11 WE CAN COMMENCE OUR BUSINESS.
• Conduct a minimum of two board meeting.
• Mandatory maintenance of books of accounts.
• Preparation of financial statements.
• Audit report
• Income tax return filing
• Filing of financial statement in form AOC-4 and ROC Annual Return in Form MGT 7.
yes, a section 8 company can promote another company and can also be a holding company of another company.
Yes, a section 8 company can take loan from its members and pay interest thereupon, subject to the provisions of Chapter V of the Company’s act 2013
*(Exclusive of Government fees & taxes)
A public limited company is subject to the strictest compliances and scrutiny among all types of business structures. This makes it important for you to follow each of them to the point and within the due date.
We at helpmybiz strive to make our client's business journey easier by taking the load off their shoulders and ensuring that each of the compliances is met accurately well before the due date arrives! Get in touch with the expert today!
Below we mention some of the important compliances we need to take care of right after the company is formed.
Details of the allotment of shares of the company need to be properly mentioned and maintained in the register of allotment.
The company needs to declare its statutory auditor within 30 days of incorporation and file form ADT – 1 with the Registrar of Companies.
The first board meeting needs to be called within 30days of the formation of the company. The notice should be delivered to the attendees at least 7 days before the meeting date. We also need to ensure the minutes of the meeting are recorded and finalized within 30days of the meeting.
The directors of the company need to be completely transparent about their interest in other companies, a group of companies, or any individuals or associations. They also need to elaborate on the nature of interest or concern and the shareholding they have in that company. Further, they need to keep on updating the board of directors in case any changes arise. All of this is filed in form MBP -1.
After a company has been formed, it is important for it to apply for its GST number. It becomes particularly compulsory if your business relates to inter state transactions, ecommerce transactions or an annual turnover of more than 20 lacs.
Form AOC – 4 needs to be filed every year with the Ministry of Corporate Affairs. We need to ensure it contains several documents related to the financial health of the company like the Balance sheet with its notes, Profit and Loss Account, Cash flow statement, reports from the auditor and board, and any other relevant documents. We also need to file form MGT – 7 before 30th September every year. These are just 2 important forms among the many different forms a public limited company needs to file annually.
Our team at HelpMyBiz understands how important it is to file for the compliances on time so as to avoid the unnecessary payment of penalties and fines. We believe in delivering our work before time and keeping it professional. If you have any queries or doubts feel free to request a call back from the experts today!
Decade of experience in all sectors for tax & compliance services in India.