Incorporation and Compliances of Section 8 Company

Section 8 company means a company formed for the purpose of promotion of commerce, art, science, education and research, sports, welfare, religion, protection of environment or any other social object.

Section 8 companies are not liable to use the word limited or private limited after their name.

A section 8 company may be registered by obtaining a license from central government without the addition of the word “limited” or “Private Limited”

If the proposed Section 8 Company has been registered as a private limited then a minimum of 2 directors are required. But if it is a “public limited Section 8 Company” then a minimum of 3 directors must be there.

Documents to be submitted for incorporation of section 8 company:

1. Passport size colored photo.

2. For proof of premises electricity bill/telephone bill/water bill as registered office address.

3. NOC from owner of premises.

4. For address proof of director’s electricity bill, mobile bill, telephone bill or bank statement.

5. For identity proof voter id, driving license or passport of the directors.

6. Aadhar and PAN of directors.

There are various benefits for incorporating a section 8 company some are-

1. No stamp duty is levied for incorporation of section 8 company.

2. Section 8 Company is not required to write “Public Limited or Private Limited”, next to it’s legal name. It can be registered with names such as “Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, and Federation.

3. There is no applicability of CARO.

4. There is no minimum capital requirement for incorporation of section 8 company.

Compliances required to be done by section 8 company are-

1. Section 8 company is required to adhere to the following statutory compliances:-

2. FORM-20A-Declaration for commencement of business is required to be filed by section 8 companies within 180 days of incorporation.

3. Director KYC –Every individual director who holds a valid DIN are required to file director KYC form on or before 30th September from end of the financial year.

4. Appointment of auditor-As per section 139 of companies act, 2013 every company is required to appoint the auditor for the audit of section 8 company.

5. Income Tax filing- Section 8 company is required to file income tax return before or on 30 September of the next financial year

6. Annual General Meeting-is to be done once in a year within a period of 6 months.

7. Filing of financial statements-Every Section 8 company are required to file the financial statement within a period of 30 days from the date of AGM.

8. Filing of Annual Returns-The annual return is required to be filed in form-MGT-7 every year by section 8 companies.

9. MBP-1-In the first board meeting of the financial year director should disclose the interest or whenever there is change in disclosures already made.

Any person can incorporate a section 8 company after complying with the provisions of the Companies Act, 2013.