2nd Floor, Om Apartments, Pune
+91 - 9595 271 145 / +91 - 9284 293 227 info@csladda.com

Note on incorporation of Section 8 Company.

A.     INTRODUCTION:

Section 8 companies are those companies which are formed for the sole purpose of promoting commerce, art, science, religion, charity or any other useful object and have been granted a license by the central government recognizing them as such. Such companies should intend to apply its profits, if any or other income only in promoting its objects and must also prohibits payment of dividend to its members.

 

The income of NPO cannot be used for paying out dividends to the company’s members and has to be for the promotion of charitable objectives. Such companies obtain an incorporation certificate from the central government and are liable to adhere to the rules specified by the government.

 

B.     ELIGIBILITY TO APPLY FOR SECTION 8 COMPANY:

An individual or an association of individuals is eligible to be registered as Section 8 Company if it holds below-mentioned intentions or objectives. The objectives have to be confirmed to the satisfaction of the Central Government.

  • Its objects should be only to promote commerce, art, science, religion, charity or any other useful
  • It should intend to apply its profits or other incomes only in promoting its objects; and
  • Central government should have granted a license to such a company recognizing them as such.

 

C.     CHARACTERISTICS OF A SECTION 8 COMPANY ARE:

  • It must have at least 2 shareholders in case of Private Company and 7 in case of Public Company.
  • It must have at least 2 directors in case of Private Company and 3 in case of Public
  • The director and shareholder can be the same person
  • Prohibited from paying any dividend to its members.
  • Profit and other income are applied only for promoting the objects of the company.

D.     ADVANTAGES OF A SECTION 8 COMPANY:

  • Many privileges and exemptions under Company
  • Exemption of Stamp duty for
  • Registered partnership firm can be a member in its own
  • Tax deductions to the donors of the Company u/s. 80G of the Income Tax Act.
  • No need to add any suffix to its name like ‘limited’ or ‘Private Limited’.
  • No restriction on transfer of shares.

E.     SERVICES TO BE RENDERED:

  1. Obtaining Digital Signature Certificate (DSC) of all Directors, if any
  2. Obtaining Director Identification Number (DIN) of all Directors, if any
  3. Obtaining Name Availability from Central Registry Centre (CRC), New Delhi, India
  4. Drafting Memorandum and Articles of Association of the Company
  5. Drafting and filing of various forms and documents with Registrar of Companies (ROC)
  6. Co-ordinating with CRC/ROC or any other competent authority.
  7. Certifying compliance of all applicable provisions of the Companies Act, 2013 and the Rules framed there under (Act) to the ROC.
  8. Ensuring compliance of all applicable provisions, rules & regulations of the Act on or before due dates subject to timely receipt of documents from you.

F.      Documents Required:

Please refer “List of documents” specified as Annexure ‘A’ below.

 

G.     TERMS AND CONDITIONS:

  • Assigner shall nominate specific person(s) for co-ordination and shall provide relevant data support in concern assignment Mr. Pramodkumar Ladda and will be assigned
  • All the payments should be made in the name of “Ladda Bhutada & Associates”.
  • GST will be added separately additionally @18% on above mentioned
  • All the disputes shall be subject to Pune
  • Termination of this contract requires 30 days’
  • Payment Terms- 50% advance along with Work Order, 50% after submission of Application for
  • GST- Extra as

 

  1. PLACE OF RENDERING SERVICES

The place of rendering services generally shall be our office situated at Office No. 106, Sr No. 55, Sukhniwas, 15th August Chowk, Mangalwar Peth, Pune – 411011, Maharashtra, India.

 

  1. ASSUMPTIONS:

In relation to the above scope of work, we have assumed the following:

Our advice, if any, will be restricted to advise on Indian legal issues and we will not be required to advise on laws other than laws of India.

 

  1. REPORTING:

We shall report only to you and shall owe no responsibility or duty of care to any other party. Our services are for your benefit and may not be used or relied upon by anyone else without our prior written consent.

 

  1. CONFIDENTIALITY:

All communications between the Parties shall be treated as confidential. We will keep confidential and not disclose to any third party any information or documents received from you, unless otherwise required to be disclosed by law and/or agreed between Parties. For the purposes of the foregoing, “Parties” shall mean you and LBA (“Ladda Bhutada & Associates).

L.     FEES:

Our professional fees for incorporation of Section 8 Company will be as below-

Sr. No. Particulars Amount

(In INR)

1 Package for Incorporation of Section 8 Company Shall be Discuss in Meeting

 

Government fees and all out of pocket expenses at actuals.

**GST will be applicable @ 18%

 

Thanking you and assuring the best of our services at all times.

 

“Our priority is Client’s satisfaction and we believe in maintaining healthy and long-term relations with our clients.”

 

Kindly sign a copy of the letter/ or mail me at info@csladda.com in token of approval or you may issue separate letter accepting terms and condition of this letter.

Thanking you and assuring best professional services.

 

 

Sd/-

Pramodkumar R. Ladda

Company Secretary and Insolvency Professional

Annexure ‘A’

List of Basic Documents Required

(A) Foreign National

  1. Passport (Mandatory).
  2. Address Proof (Latest Water Bill/ Electricity Bill, Telephone Bill, Bank Statement)
  3. Identity Proof (Valid Driving License / Election Card)
  4. Recent Passport size photos of each person in soft

Note: All the basic documents should be Apostilled by the Indian Embassy of the Host Country or should be Notarized, if Notary is available in Host Country. In case documents in vernacular language other than English, translated copy required.

 

  1. B) Indian National
  2. PAN Card (Mandatory)
  3. Address Proof (Latest Telephone Bill/ Electricity Bill and Rent Agreement, if any / Certified Bank Statement)
  4. Identity Proof (Valid Driving License / Voter Id Card/ Passport)
  5. Recent Passport size photos of each person in soft

Note: All proofs should be Self-attested.

 

(C) Others:

  1. Birth Certificate (Place and District/State/Country)
  2. Educational Proof
  3. Mobile Number
  4. Email Id

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