It is an organization that is registered as a Non-Government Organization(NGO) under Section 8 of the Companies Act, 2013, basically, it is old wine in a new bottle. In India, a non-profit organization can be created by registering a Society under the Societies Registration Acts or registering a Trust or incorporating a private limited company. The objective of the company is to promote charity, education, protection of the environment, arts, commerce, social welfare, sports, research, religion, science, etc. It has all the rights and obligations of a private limited company. However, it cannot use the words “Limited” or “Private Limited” at the end of its name. It works as a charitable organization without a profit motive. Section 8 company registration procedure is almost similar to a private limited company.
Advantages of Section 8 Company:
No Minimum Share Capital Requirement
Easy Transfer of Ownership
No need to use “Private Limited” or “Limited” in title
No Stamp Duty
Clear Objectives for easy donations and loans
Easy to Manage
Exemptions and Privileges under Company Law
Relaxation in Compliances
Digital Signature Certificate
Director Identification Number
ID proof for members: (Aadhar Card, Passport, Voter ID)
Passport size Photographs
Director’s details (if Members are other Companies/LLPs)
Copy of Property papers (If owned property)
Copy of Rent Agreement (If rented property)
Electricity/ Water bill (Business Place)
Register a Section 8 Company one can do with the help of LegalRaasta in Delhi.
First of all, go to company registration online and click the ‘Form a business’ option. Next click on “Section 8 Company” and the process begins.
Step 01: Fill the Section 8 Company Registration Form:
Fill in the text boxes with your contact details and click on proceed.
Step 02: New Company or Existing Company:
Tell us which company do you want a Section 8 Licence, a new company, or an existing company. Select the appropriate option button. Next, Select the State as Delhi and type the city name as “Delhi”.
Step 03: Getting a Section 8 Company Licence for a New Company:
If you want to form a new company, fill in the name that you want, for the company. Please give us two alternate names in case your first choice name is rejected by the Ministry of Corporate Affairs. You can fill in the two extra names in their order of preference. Next fill in your address.
Step 04: Getting a Section 8 Company Licence for an Existing Company:
If you want a license for an existing company, then after selecting the State and filling in the city name, enter the name of the existing company, its Corporate Identity Number (CIN), and its registered address. Then click “Next”.
Step 05: Director Details:
Then select the number of directors that will be appointed to the company. The minimum directors required for a section 8 company are 2 and a maximum of 7. You can click on the small ‘+’ sign to add more directors. Next, fill in the name, address, and State of each director. Next, there are three important details you need to fill in. They are the total capital contribution, the capital contribution ratio of the directors, and the authorized share capital of the company. The total capital contribution means the total amount of capital that the company will start with. The capital contribution ratio refers to the ratio (e.g. 50,000:60,000:20,000 can be represented as 5:6:2) in which the directors have contributed to the capital. Finally, the authorized share capital refers to the maximum capital that the members of the company can contribute.
Step 06: Payment Options:
After, click on “Next”, you will be taken to the payments option page. We provide a variety of payment options. You can choose from Netbanking (EBS Payment Gateway)/Debit or Credit Card, EMI, Bank Transfer (IPMS, RTGS, NEFT), and your choice of mobile wallet (Mobikwik, PayU, Instamojo). Additionally, you can also pay from your Paytm wallet by speaking to our sales executives on the phone. Then, click “Next”.
The price for a Section 8 Company Registration comprising of 2 directors is Rs.23,999/- but the price for the same for every extra director beyond 2 directors increased by Rs.2000/- per director (includes the cost of Digital Signature Certificate (DSC) and Director Identification Number (DIN) for every extra director). You can also apply your valid discount coupon if any. Then click “Next”.
Step 07: Billing Details:
Please provide your billing details. This is because your billing details might be different from your registration details. After clicking on “Submit”, you will be directed to the appropriate payment gateway for secure payment.
Step 08: Work Completion:
After your payment is successful, your company incorporation process will start. Then, we shall obtain the DSC and DIN for directors and apply for name approval of your Section 8 Company within 3 working days. Once we receive those, we will apply for a license and also obtain a certificate of incorporation and then apply for TAN and PAN for your company within 10 working days. We will provide you with the details of your company as soon as we receive them from the Ministry of Corporate Affairs and send the company’s TAN and PAN by courier. That’s all folks, your work is complete.
So what are you waiting for? Helping people has never been this easy. Go ahead, create a Section 8 Company and help those in need.