Section-8 Companies are non-profit organizations with a noble objective of promoting various areas of social welfare. This article provides insights into the definition, incorporation steps, annual compliance, and registration fees for Section-8 Companies.
1. Definition:
The object of Section-8 Company will be promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; 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.
2. For incorporation of Section-8 Company we will have to take license from Central Government and there is no minimum limit of PUSC for incorporation of Section-8 Company.
3. The Company incorporated under Section-8 shall enjoy all the privileges and be subject to all the obligations of limited company’s privileges and be subject to all the obligations of limited companies. But company shall not add word limited in its name.
4. Steps of incorporation of section-8 Company
- Submit Spice+INC32 Which has two part. Part A- is for name reservation and in second part we can apply for:
- Application for Incorporation
- PAN
- TAN
- Application for max-3 DIN
- Attach E-MOA and E-AOA in form INC-11
- After that Attach AGIL PRO(INC-35) which will contain application for:
- GSTIN
- Bank Account
- EPFO
- Profession Tax
- ESIC
- Attach declaration in form INC-14 by CA/CS/CMA in practice/Advocate that company is being incorporated by complying the acts & rules.
- Attach INC-15 which will contain the declaration by all the subscribers & first director that they were not convicted in any offence relating to promotion, formation & management of Company & were not convicted of any fraud in last-5 Years.
- If all the documented are properly submitted, then within 1 working day Certificate of Incorporation form INC-11 will to received.
- After that submit INC-22 within 30 days informing the address to ROC of your registered office if that address is not mention in SPICE+INC32.
5. Annual Compliance under Section-8 Company:
- Appointment of Auditor: Under section 139 of the Companies Act 2013, it is essential for the Company to hire an auditor within 30 days from the start date for the period of 5yrs.
- Maintenance of Statutory Registers: It is obligated for the company to maintain a statutory register consisting of members, loans received, charges made, its directors, and others. as listed under section 8 of the companies act 2013.
- Calling board meet: Section 8 companies will have at least one meeting every 6 calendar months.
- GM notice: A section 8 company could hold a general meeting i.e. whether yearly or extraordinary with min 14 days’ notice.
- Calling AGM: Annual general meeting would be held once a year within 6 months of the finish of the fiscal year. But, in the case of the first annual general meeting, the company could hold AGM in less than 9 months from the finish of the first fiscal year. You must learn that the time duration between 2 annual general meetings need not surpass 15 months.
- Board Reports: The Board of directors of the company will furnish their board’s report in a specific way, it comprises all the financial statements and additional annexure. The board report would be needed to get furnished in Form AOC-4.
- Making of Financials Statement of the Company: The organization would obtain the balance sheet, profit, loss A/C, cash flow statement as well as additional financial statements audited via statutory auditor i.e. is to be furnished with ROC.
- Tax returns: Income tax return would be needed to get furnished during the finish of every assessment year prior to the date 31st Oct.
- Annual Return Filing: The annual return filing consists of all the details such as management details, and shareholders’ information would be filed in Form MGT-7 with the Registrar of Companies (ROC), within 60 days of the annual general meeting.
6. Section-8 Company registration Fee:
- Company Name Reservation – 1000
- MOA & AOA & Government Fees & Incorporation fees – Rs 6000-8000
- Notary and Stamps – 2000
- Professional Fees- 8000-10000
Conclusion: Section-8 Companies play a vital role in contributing to society by focusing on diverse welfare activities. Understanding the incorporation process, compliance obligations, and registration fees is essential for those looking to establish Section-8 Companies. By adhering to the regulations and following the outlined steps, these organizations can thrive and make a significant impact on society’s well-being.
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