Responsive Header
info.effectsindia@gmail.com +91 8285045877

Sextion-8 Company Incorporation in india

How to take our professional service

Take Consultation
Take Consultation

Our team shall review and call you back in 3-4 hours.

Post Requirement
Post Requirement

Our team shall review and call you back in 3-4 hours.

Get a Proposal
Get a Proposal

Our team shall review and call you back in 3-4 hours.

Company Information

Incorporating a Section 8 Company in India:

Incorporating a Section 8 Company in India is a process designed for organizations aiming to promote charitable causes, social welfare, education, science, religion, environment, or other similar objectives. Governed by the Companies Act, 2013, these companies operate without the primary objective of earning profits, instead focusing on the betterment of society. To establish a Section 8 Company, certain criteria must be met, including obtaining a license from the Central Government and adhering to specific regulations regarding the company's operations and allocation of funds. This legal structure offers tax benefits and exemptions, encouraging philanthropic endeavors and fostering positive social change. Additionally, Section 8 Companies must appoint a board of directors to oversee their activities and ensure compliance with regulatory requirements, further emphasizing transparency and accountability in their operations.

Send your Requirement here

Features of a Private Limited Company (PLC)

Error loading page
Basic Requirements
  • A.Minimum of 2 Directors and 2 Shareholders (share subscribers).
  • B.All Directors must have a Director Identification Number (DIN).
Limitations
  • A.Maximum of 15 Directors.
  • B.Up to 200 Shareholders (members).
Corporate Shareholding
  • A.orporations can be shareholders.
Compliance Obligations
  • A.Annual Statutory Audit required, conducted by a practicing Chartered Accountant (CA).
  • B.Annual filing with the Registrar of Companies (ROC) is mandatory.
Taxation
  • A.Income tax is charged at 22% on net profit.
Startup Eligibility
  • A.Can apply for Startup Recognition, subject to meeting specific terms and conditions.
Investment and Funding
  • A.Ideal structure for attracting external investments.
  • B.Capable of offering Employee Stock Ownership Plans (ESOP) to employees.
Legal and Liability
  • A.Functions as a separate legal entity with limited liability for its members.

Documents Requirement for incorporating a Section 8 Company in India

01
Minimum Number of Directors: At least two individuals must act as directors, with one being an Indian resident.
03
Minimum Number of Members: The company must have a minimum of three members (subscribers).
05
Unique Name: The proposed name for the company must be unique and not already registered with the Registrar of Companies (ROC).
07
Objectives: The objectives of the company must be solely for promoting charitable activities, social welfare, education, science, religion, environment, or other similar purposes.
02
License: Obtaining a license from the Central Government is mandatory for incorporating a Section 8 Company. This license ensures compliance with regulations and confirms the charitable nature of the organization.
04
No Profit Distribution: The company cannot distribute dividends to its members. Any income generated must be reinvested for furthering its objectives.
06
Memorandum and Articles of Association: A Memorandum of Association and Articles of Association must be drafted, outlining the company's objectives, rules, and regulations.
08
Compliance with Regulations: The company must comply with all applicable laws and regulations, including those laid down in the Companies Act, 2013, and the Income Tax Act, to maintain its status as a Section 8 Company. .

Compliance Requirements under the Companies Act

In addition to fulfilling statutory obligations like GST and Income Tax, private limited companies are mandated to adhere to certain regulatory requirements outlined in the Companies Act. These obligations are crucial for maintaining transparency, accountability, and legal standing. Failure to comply with these obligations can lead to penalties and legal repercussions. Here are the key compliance requirements that a private limited company must address without delay:

Commencement of Business (COB)

Within 180 days of incorporation, it is imperative for a private limited company to file the Commencement of Business (COB) e-form INC 20A. This form signifies that the company has commenced its operations and is actively conducting business as per its memorandum and articles of association.

Appointment of Statutory Auditor

A practicing Chartered Accountant must be appointed as the Statutory Auditor to audit the company's books of accounts and issue audited Annual Financial Statements. This ensures that the financial records are accurate, reliable, and compliant with regulatory standards.

Filing of ROC Annual Forms

The company is required to file various annual forms with the Registrar of Companies (ROC) to report its financial performance, management structure, and other relevant information. These forms include the Annual Return, Financial Statements, and other documents as prescribed by the Companies Act.

Filing of Director e-KYC

Directors of the company are obligated to undergo electronic Know Your Customer (e-KYC) verification, which involves providing updated personal and professional information. This process helps in maintaining the authenticity and integrity of the directorship

For startup companies, it's essential to allocate additional funds, approximately Rs 40-50K annually, for audit expenses and ROC filings. This financial provision ensures that the company can fulfill its compliance obligations without financial strain. By diligently adhering to these compliance requirements, private limited companies can operate smoothly within the legal framework and uphold their reputation in the business ecosystem.

Our Service Coverage

After Company incorporation, you will receive below documents

  • Company Certificate of Incorporation
  • Memorandum of Association & Article of Association (MOA & AOA)
  • PAN Card and TAN Allotment
  • EPF & ESI Registration
  • Digital Signatures (Class 2)
  • Directors Identification Number (DIN)
  • Assist in Bank A/c Opening
  • Professional Tax Registration (in Maharashtra Only)
  • GST Registration (Optional)
Service List
Navneet K Arora & Co LLP

Effects India, where professionalism meets excellence. Established in 1995, we have built a reputation for delivering comprehensive consultancy services across diverse industries. Our team comprises dedicated professionals including Company Secretaries, Chartered Accountants, Advocates, Solicitors, Management Professionals, and IT Experts, all committed to providing top-notch solutions tailored to your business needs.

Contact Information

+91-11-49901507

+91 9871290287

+91 8285045877

info.effectsindia@gmail.com

info@effectsindia.com

www.effectsindia.com

CIN No: U65921DL1995PTC223155

E-8/1, LGF, Near Geeta Bhawan Mandir, Malviya Nagar, New Delhi-110017

© 2024 effectsindia.com by KhatuShyam Technologies. All Rights Reserved.