Section 8 Company Registration in Chennai
Register your Section 8 Company with speed, ease and Value Savings
-We will draft and file your application to MCA
-You just need to fill a simple 10-minute Questionnaire
-Simplifying your business journey
What is a Section 8 Company?
A Section 8 Company is named after the Section 8 of the Companies Act, 2013. The section applies to the incorporation of an association ‘for promoting commerce, religion, art & culture, education, charity, research, science, sports, social welfare, environmental protection or any other charitable objective; , provided that any possible earned profits will only be applied for promoting the objectives of the association and no dividend is to paid to its members.
A Section – 8 Company is similar to a Trust or a Society. The Section 8 of the Companies Act is very similar to that of Section 25 of the Old Companies Act. It is registered under the Central Government’s Ministry of Corporate Affairs through the Section 8 of the Companies Act, 2013 for not-for-profit purposes.
The government provides a license to all the Section 8 Companies along with informing them about the restrictions and conditions. If the association fails to fulfill the prescribed conditions then the Central Government might order then to shut it. In cases of fraudulent objectives, legal actions are taken against all the officers and members of the company.
Benefits of Section 8 Company Registration in Chennai
Chennai is known as the ‘Detroit of India’ because there are many automobile industry situated here. 30% of automobile industry and 40% of its auto components industry situates here. Many companies have their manufacturing plants. Companies are Hyundai, Renault, Nissan Motors, etc.
Many companies have their manufacturing plants. Companies are Hyundai, Renault, Nissan Motors, Ford, BMW and Mitsubishi etc. Additional benefit is presence of financial institutions like World Bank, The Royal Bank of Scotland, Abu Dhabi Commercial Bank and Sumitomo Mitsui Banking Corporation. So, Chennai is known for industries related to Automobile.
Software Technology Parks of India (STPI) provide support with Company Registration in Chennai for emerging entrepreneurs. In last few years Chennai has become one of the preferred destinations for IT companies such as Infosys, TCS, Wipro and Cognizant and MNCs. Chennai has the perfect combination of professionals and talent base for the business to flourish.
Venture Capitalist in India are an essential part of startup ecosystem. Once a startup has reached it’s growth stage, it’s most important requirement is undoubtedly the backing by reliable investors and an ample amount of funding to scale up. Accel Partners, Blume Venture Advisor funds, Sequoia Capital India etc are the active VC Financing in Chennai.
Ease of doing business
For a State that boasted of record investments received during the Global Investors Meet last year, the recent Ease of Doing Business report from the World Bank must come as a jolt. Among 17 cities ranked by the report, Chennai ranks a dismal 15. Only Kochi and Kolkata are further behind. Ludhiana tops the list among 17 cities.
At Company Registration our experts register your Section 8 Company in Chennai and also help you in all matters of company registration. Starting from Selecting a Name for your association, searching availability of the name you have chosen, designing your logo, providing trademark registration of your brand name and free consultancy on any matter related to your company registration. Company Registration is just the first step of your journey with us. We also provide Bookkeeping, Taxation, Annual Filing, ROC Compliances (such as minutes, notices etc.) services. We are a one stop shop for all your business related needs.
Advantages of Section 8 Company Registration
- Numerous Tax exemptions are given to the Section 8 Companies. The donors who are donating to a Section 8 Companies are eligible to claim the Tax Exemption against the donation they’ve made to the association.
- The incorporation procedure of a Section 8 Company does not state any minimum capital requirement unlike other such entities such as public limited and alike. The capital structure can be altered at any stage as per the growth requirements of the company.
- A Section 8 Company is exempted from the stamp duty payment that is otherwise applicable for registration of other structures such as private limited or a public limited company.
- A Section 8 Company has its separate legal identity analogous to other company structures and has its own legal standing apart from its members. It has a perpetual existence.
- Compared to any other Non Profit organization structure such as Trust or a Society, a Section 8 Company has more credibility owning to the license given by the central government. Alongside a Section 8 Company has to follow more stringent regulations such as no change can be undertaken in the MOA and AOA at any stage or situation. There is more reliable image of a Section 8 Company due to such strict compliances in comparison to other legal structures.
- Unlike the name requirement in other company structure, the Section 8 Company does not require a use of a suffix next to its legal name.
Minimum Requirements for Section 8 Company Registration in Chennai
- Minimum of 2 Shareholders
- Minimum of 2 Directors ( Both Shareholders and DIrectors can be the same people )
- At least one Director should be an Indian Resident
- No requirement of the Minimum Capital
- PAN issued by the Income Tax Department is a mandatory requirement for Indian Nationals
- Passport is a mandatory requirement for identity proof in case of Foreign Nationals
- Any one additional Identity Proof – Voter ID/ Aadhar Card/ Driving License/ Passport is required.
- Any one Residential Proof i.e. any of the utility bill – Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill
- Proof of the Registered Office Address:
In case of a rented property, rent Agreement along with the latest rent receipt, the copy of latest utility bill in the name of the landlord and a no objection certificate from the premises’ owner is a compulsory requirement.
In case the premises is owned by the Director or the Promoter then any documents that proves the owners’ establishment such as a Sale Deed/House Tax Receipt and a No Objection Certificate.
Factors to be Considered in Section 8 Company Name Selection
The Name of the Section 8 Company should comply with the following:
- Short and Simple Name
- A Meaning and Unique Name
- It shouldn’t violate any law
- It shouldn’t use the term “British India”
The Name of the Section 8 Company should comply with the following:
Steps for Section 8 Company Registration in Chennai
1. Applying for Digital Signature of Director (DSC)
DSC is an equivalent of the physical or paper certificates in their digital format. The process of incorporation begins with applying for the DSC because the application for the Section 8 Company is filed online with the DSC of the director only. In order to issue a DSC, a signed application form with a photo, ID and Address proof of the director is submitted.
2. Applying for Direction Identification Number (DIN)
Director Identification Number is a permanent and a unique identification number issued to the Director of a company or a designated partner of the LLP. by the Registrar of Companies. In accordance with the New Companies Act, 2013 – no person can hold an office of the director without having a DIN. An application to the ROC is made with a photo, attested ID and and address proof duly signed by a practicing professional, a CA/CS/CMA for the allotment of DIN.
3. Name Approval of the Section 8 Company
Name of each and every company should be new and unique. In other words, no company name should resemble to that of an already registered company, LLP or a registered trademark. After the successful allotment of DSC and the DIN, an application is made to the ROC for the approval of the company name. The Registrar is entitled with the discretionary powers when it comes to the approval of the company name.
4. Issue of the Central Government License
An application is made to the Regional Director of the Ministry of Corporate Affairs accompanied with the statement of the proposed objective of the to be incorporated company and a complete projection of the profits and losses of the succeeding three years i.e., the statement of assets and the liabilities. The Regional Directors are vested with unrestricted powers to approve the license application.
5. Drafting of the MoA and AoA of the Company
The Memorandum of Association (MoA) of the Section 8 Company includes all the information about the company such as the Name of the Company, state of company incorporation, details of the authorized capital and declaration of the company about being it a limited company. The Article of Association (AoA) accommodates all the internal rules of the organization. It is mandatory for the promoters to adopt and sign the MoA and AoA before it could be filed with the ROC.
6. Company Incorporation
Once your application is filed you will receive an ARN number. The Incorporation certificate is received within 15-20 days .It is a proof that company has been created. The COI also includes your CIN (Company Identification number).
7. Opening of a Company Bank Account
It is mandatory for a company to have a bank account in order to operate its business. Our expert executives are here to help you in getting the company PAN, TAN and TDS payment compliance to help you open the company bank account.