How to register a company online with Lawgical India: Section 8 Company Registration.
With the dynamic environment of the Indian social and charitable sphere, it has become more crucial to form a non-profit organization that can help people and organizations that want to make a positive change. Section 8 Company Registration is considered one of the most popular and legally sound methods of doing so. In the Companies Act, 2013, a company whose formation complies with the Section 8 section of the Companies Act, 2013 is established with the aim of promoting arts, science, commerce, education, charity, social welfare, or environmental protection, without distributing profits among members. It is the alternative to the older Section 25 companies and offers a realistic network of NGOs and charitable groups.
Due to the introduction of digital governance, the Section 8 Company Registration Online has made the process easier whereby an applicant can do most of the steps through the portal of the Ministry of Corporate Affairs (MCA) without visiting the office physically. This online system not only saves time, but also minimizes paperwork and can be used by aspiring philanthropists in India. Be it starting a foundation to assist in educating the needy or starting a microfinance program to help empower rural poor, online registration equates efficiency and compliance.
Lawgical India is one of the most popular law services providers that offer Section 8 Company Registration Online. Lawgical India is an experienced firm with over 5 years of experience, 80+ professionals, and thousands of satisfied clients providing end to end solutions which includes document preparation, and compliance after registration. They include everything in their packages starting with [?]8,999 plus government charges, including Digital Signature Certificates (DSC) all the way to the creation of websites. In this guide, we shall explore the complexity of the Section 8 company registration process and how Lawgical India can facilitate the process.
What is a Section 8 Company?
Section 8 company simply means a non-profit organization registered under Section 8 of Companies act, 2013. It is established with the main purpose of supporting charitable interests, e.g. literature, fine arts, scientific research or dissemination of knowledge. In contrast to for-profit companies, there is no option to pay any dividends to members, and all the income or profits made should be reinvested into the goals of the company. This is why it is the best choice among such organizations as foundations, associations, or socially-oriented NGOs.
The company has independent legal personality, indefinite succession and a restricted liability of its members. It may own property, may make contracts; may sue or be sued in its name. The Registrar of Companies (ROC) regulates Section 8 companies and they are supposed to follow a stringent set of rules to ensure that they remain non-profit. As an example, instead of members getting assets when the organization dissolves, the assets are transferred to a similar organization.
These companies play a significant role in the fields of education, healthcare and environmental conservation within India. Of particular concern are microfinance businesses that fall under Section 8 and provide financial services to underserved communities and concentrate on community impact rather than profit. According to Lawgical India, this type of structure will increase the credibility and is therefore more likely to attract donations and partners.
Advantages of Section 8 Company registration.
Section 8 company registration has many benefits and is therefore favoured among non-profits. On the one hand, tax privileges are an important attraction. Such companies pay no income tax and they can enjoy the benefits of Section 80G of the Income Tax Act, 1961 to get deductions claimed by the donors. These exemptions have to be registered under Sections 12A and 80G.
claim deductions. These exemptions have to be registered under Sections 12A and 80G.
The second advantage is that there is no stamp duty at incorporation and set-up costs are considerably lower than in other types of companies. Minimum paid-up capital is not required, so a startup with philanthropic business objectives has the flexibility to raise capital. There is no restriction on transfer of ownership of the property as it is the case in LLPs.
The legal character of section 8 companies is separate, and therefore, they can have their own assets and can exist forever, independent of the membership. They are more credible as they are licensed by Central Government and can not be changed afterwards. There are no compulsory suffixes such as Pvt Ltd and therefore naming is flexible.
In the case of microfinance organizations, it leads to increased trust in financing, grants, and tax incentives to donors, promoting an increased social contribution. Lawgical India points out that all these perks together with limited liability provide protection to personal property and promote stability in operations. In sum, the Section 8 registration is as much a legitimizing vehicle of charity work as it is a vehicle of government grants and trans-border association, thus, an effective tool of a social entrepreneur.
Standard Requirement to register Section 8 Company.
In order to qualify under Section 8 Company Registration, there are requirements to be satisfied to demonstrate that the entity is non-profit. There must be at least two directors/shareholders, and they must be natural persons that are at least 18 years of age. No restrictions to citizenship; however, a minimum of one resident of India must qualify as a director.
The company should be having a registered office address, whether commercial, industrial or residential. Goals must be in line with charitable interests such as education, arts, science or social welfare and all profits reinvested.
There is no capital requirement but the entity would have to prove its financial viability based on projections. Partnerships may be members or directors. As Lawgical India recommends, criteria should be available to encourage microfinance to the underserved population with a focus on ethical conduct.It is also recommended that applicants should ensure that they have no form of past disqualification such as bankruptcies or criminal backgrounds that will directly affect their suitability to be a director. The name should be original and it should contain words such as Foundation or Association to indicate non-profit making. By fulfilling these requirements, the MCA will approve without any difficulties.
Paperwork needed to Register the Section 8 Company.
Hassle-free Section 8 Company Registration Online requires the collection of the correct documentation. Key requirements include:
· DIN (Director Identification Number) and DSC (Digital Signature Certificate) of all the directors.
· Identity documents such as PAN card (compulsory to Indians), passport or Aadhaar.
· Talk about evidence that has been substantiated such as utility bills or bank statements within two months.
· Articles of Association (AoA) and Memorandum of Association (MoA) with objectives and rules.
· Financial statements, such as estimated revenues, expenditures, assets and liabilities in three to five years.
· Rental contract, landlord NOC and utility bills are registered office documents.
· Reported (Form INC-15) statements by directors that state compliance with Section 8.
· Educational/professional and passport-size photos of directors.
In the case of microfinance, there might be more RBI compliance documents required after registration. Lawgical India helps in making these, which are guaranteed to be good enough to be submitted online due to having their scanned copies.
How to register Section 8 Company online in steps.
The MCA portal simplifies the process of registering a company in Section 8, which otherwise would take 20-30 days when guided properly. The following is a case by case breakdown:
· Get DSC, DIN: All directors should have a Class 3 DSC to sign electronically and a DIN through Form DIR-3. This is the basis of online filings.
· Name reservation (RUN Form): The RUN (Reserve Unique Name) service can be used to propose a name containing such terms as: foundation or society. Approval is valid for 20 days. Do not make it routine to avoid rejections.
· Make MoA and AoA: inspired by charitable goals, rules, and reinvestment of profits provisions.
· Section 8 License (Form INC-12): Filed with ROC together with MoA, AoA, financial forecast, director statements and the list of subscribers. The license is valid for 30 days.
· File SPICe Form of Incorporation: This is an integrated form which deals with name approval, incorporation, DIN allotment, PAN, TAN and EPFO/ESIC registration. Append RD-1 license and office testimony.
· Checking and confirming: The documents of ROC are analyzed; they are approved; the Certificate of Incorporation with CIN is issued.
· Post-Incorporation Requirement: (not done through SPICe+) Make PAN/TAN application, Open bank account, and GST registration (where applicable). In the case of microfinance, follow the RBI guidelines.
Success tips: In order to become successful, we suggest that you hire professional help in the form of Lawgical India that would help you avoid any mistakes, and everything has to be electronic in making filings and keep track over Web. Pits are unfinished financials or clash of names.
Section 8 Company registration under Lawgical India.
Section 8 Company Registration Online can consider the services of Lawgical India as one of the most trustworthy partners because it offers different packages based on the needs. Their Gold package of [?]8,999 + govt. fees covers 2 DINs and DSCs, incorporation documents, PAN/TAN, GST and even a professional web site with SEO. Platinum and Diamond service in [?]19,999 and [?]36,999 has better compliances and services.
Clients e-mail scanned documents, and Lawgical does filings without the need of a physical presence. They will provide quick approvals, name options and document opinion. In the case of microfinance, they direct RBI compliance.
With 40,000 plus projects and 24/7 support, Lawgical India facilitates the process and makes social ventures more effective, including making eligibility checks, annual filings, etc.
Section 8 Company Post-Registration Compliances.
Once registered, it is important to be compliant. Form AOC-4 (financials) and MGT-7 (annual return) are annual reports that are submitted to ROC. Prepare annual audit financials and prepare statutory registers of members and charges.
Under 12A and 80G, have to be registered. Make sure that activities are carried out within MoA objectives; otherwise punishment can be imposed. Board meetings and the recording of the minutes should occur quarterly.
Lawgical India will provide auditor appointment and ITR filings as a package to avoid the penalties of up to [?]1 lakh fines in case of non-compliance.
Conclusion
Section 8 Company Registration Online is an access point to meaningful non-profit work in India. When Lawgical India helps you, the process can be efficient and stress-free. Use it to effect social change now.
Frequently Asked Question (FAQs).
1. How soon can Section 8 registration be done? Typically 20-30 days on approvals.
2. Is it possible to register a Section 8 company by foreigners? But, yes, one resident director is needed.
3. Is minimum capital needed? No, there's no requirement.
4. What are the costs? Government fee and service charges; Lawgical begins at [?]8,999.
5. Online registration is how? Using MCA portal, and DSC and e-filings.
6. Do microfinance a Section 8 company? Yes, social impact.
