Section 8 company registration-Venture care| NGO Formation Services

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As one of the largest markets in the world,
India has a vast trade and commercial domain.
However making profitts through trade and
commerce is not the only factor which is
prominent in the Indian market. India as a huge
country lacks behind in sectors like education,
employment, health care, food, and safety, etc.
Our government is under a lot of pressure to
ameliorate the conditions within the national
legislation. The central government cannot
address each and every issue simultaneously and
this creates a space for specific organizations
which assist the government working for the
well-being of society. Such organizations are
known as Non-profit organizations or non-
government organizations. A Non-profit
organization can be registered as a Company
under Section 8 of the Companies Act, 2013.It can
also be registered as Trust or a Society. Section
8 company can be incorporated for promotion of
commerce, art, science, sports, education,
research, social welfare, religion, charity,
protection of environment or any such other
object, provided it intends to apply its profits,
if any, or other income in promoting its objects
and intends to prohibit the payment of any
dividend to its members. PROS OF SECTION 8
COMPANY NO MINIMUM PAID UP CAPITAL REQUIREMENT
As per Companies Act, 2013 unlike private and
public limited companies, Section 8 Company do
not require any minimum capital contribution for
incorporation. They can commence there business
without any share capital. The fund required for
business can be brought in the form of donation
and subscription from public and members of the
Company. TAX DEDUCTION Since Section 8 Companies
are non-profit making companies they are exempted
from certain income tax provisions. They are also
given numerous deductions and benefits.
Individual Donating Money in Section 8 companies
also avail the benefits of deduction under
Section 80G of income Tax Act, 1961. NO NEED TO
USE TITLE Unlike Private Limited company which
uses Private Limited as title after its name,
Section 8 Company is not required to add any
sufix or title to its name. NO STAMP DUTY
PAYABLE A section 8 Company is exempted for the
payment of stamp duty applicable for registration
as applicable in case of other structures such as
private limited or a public limited
company. CREDIBLE A Section 8 Company has more
credibility as compared to any other Non-profit
organization structure be it a Trust or Society.
As it is a licensed by the central government. It
has more stringent regulations such as no change
in MOA and AOA can be done at any stage or
situation in a Section 8 Company. A section 8
company due its strict compliances as regard to
functioning has a more reliable image in
comparison to other legal structures. POINT TO BE
KEPT IN MIND BEFORE REGISTERING SECTION 8
COMPANIES A. Decide regarding the proposed name
to be applied, objects to be carried by
the Company, authorized
capital. B. Name of Section 8 Company shall
include the words Foundation, Forum, Association,
Federation, Chambers, Confederation, Council,
Electoral trust and the like words. www.venture-ca
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C. It should intend to apply its profits, if any
or other income in promoting its objects. D. It
should intend to prohibit the payment of dividend
to its members. E. A partnership firm is allowed
to be a member of the Section 8 Company MINIMUM
REQUIREMENTS FOR SECTION-8 COMPANY A. At least
two shareholders B. Minimum two directors C.
Shareholders and Directors could be same. D. At
least one Director should be Indian resident E.
There is no minimum capital required. F.
Registered Office Address Proof (Rent agreement
if the premises is not owned by the company) G.
Documents claiming the ownership such as Sale
Deed or House Tax receipt along with
an NOC. PROCEDURE FOR INCORPORATION OF SECTION-8
COMPANY A. Get Digital Signature Certificate
(DSC) of all members. B. Get Director
Identification number (DIN) of all Directors by
using DSC. C. Suggest at least Six Company name.
We will do search for name availability. D.
Apply to ROC for name approval. E. Once name is
approved by ROC File application to Central
Government in Form INC -12 for grant of License
to start Section 8 Company. F. Once Central
Government issues License file Incorporation
document with ROC like MOA AOA Consent of
Director, Affidavit and declaration from
directors etc. G. Once Incorporation form is
approved by ROC, ROC shall issue Certificate of
Incorporation with PAN and TAN No. Requirement to
Apply for DSC All members should have DSC 1. Pan
Card Self Attested 2. Residential Proof Self
Attested 3. Dully fill and sign DSC application
form. www.venture-care.com
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Requirement to Apply for DIN (Minimum Two
Directors are required) 1. Photograph of the
Applicant To be Self-attested. 2. PAN To be
Self-attested 3. Mobile No. 4. Email id. 5.
Educational Qualification 6. Occupation 7. Proof
of residence of applicant 8. Address proofs like
passport, election (voter identity) card, ration
card, driving licence, electricity bill,
telephone bill or bank account statement shall be
attached and should be in the name of applicant (
shall not be later than 2 months). 9. DSC of
Individual. Requirement to Apply for Name
Availability 1. Six Proposed name with
significance of Name 2. Authorized Capital-
Optional 3. Jurisdiction of Registrar of
Companies. 4. Main Object to be pursued by
Company Requirement to Apply for Central
Government License of Section 8Company 1. Draft
MOA AOA 2. INC -15 Declaration by each
subscriber (On Non- judicial stamp paper of Rs.
100/- and duly notarized). 3. Affidavit by each
subscriber regarding non disqualification (On
Non- judicial stamp paper of Rs. 100/- and duly
notarized). 4. Declaration by each subscriber
regarding non acceptance of Public deposit (On
Non- judicial stamp paper of Rs. 100/- and duly
notarized). 5. Consent from all Directors in DIR-
2 6. Estimated statement of Income Expenditure
for Next three years and it should be signed the
proposed Promoters. 7. Estimated Balance Sheet
for Next three years and it should be signed the
proposed Promoters. www.venture-care.com
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8. List of proposed Promoters and Directors of
the Company 9. Statement of ground on which
application is made. Requirement to Apply for
Incorporation of Section 8Company 1. Registered
office address of Company. 2. Recent Address
proof with NOC from Owner. TIME PERIOD Time
Required for Incorporation of Section 8 Company
Shall be 30-60 days, depending on government
approval. REGISTRATION OF COMPANY UNDER SECTION
12A AND 80G OF INCOME TAX ACT. Income of an
organization is exempted if NGO has 12-A
registration. This is one time registration. If
an organization has obtained certification under
section 80-G of Income Tax Act then donors of
that NGO can claim exemption from Income
Tax. Application for registration under section
12A and 80G can be applied just after
registration of the NGO.It can be applied to the
Commissioner of Income Tax (Exemption) having
jurisdiction over the institution. Both
applications can be applied together or it can be
also applied separately. If some organization is
willing to apply both applications separately,
then application for registration u/s 12A will be
applied first. Getting 12A registration must for
applying application for registration u/s 80G of
Income Tax Act. www.venture-care.com
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3031 AV Rotterdam, (NL) Pune, Maharashtra
411043 (IN) Phone [phone]
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