Introduction
Social entrepreneurs are folks who strive to create a superb effect on society whilst also producing revenue for his or her corporation. One of the most popular methods to start a social business enterprise in India is via incorporating a Section eight Company. A Section eight Company is a non-earnings company that is registered under the Companies Act, 2013, for the promotion of artwork, technology, commerce, schooling, faith, charity, or every other useful item, provided the earnings, if any, or different income is carried out for selling best the items of the employer and no dividend is paid to its contributors.
Starting a Section eight Company can be a complex manner, but this manual will take you via the vital steps to get started.
Step 1: Understand the Eligibility Criteria
Before beginning a Section eight Company, you have to meet sure eligibility standards. Some of the important thing requirements are as follows:
A minimum of two people is needed to start a Section eight Company, and that they may be Indian citizens or non-citizens.
The employer need to have at the least one director who’s an Indian resident.
The proposed enterprise call must be precise and now not similar to any existing corporation or trademark.
Step 2: Decide on the Objectives and Activities of the Company
A Section 8 Company must have a clear goal that aligns with the merchandising of art, science, commerce, training, faith, charity, or some other useful object. Once you’ve got decided on the goals of the employer, you want to define the sports that the company will adopt to attain its targets.
Step 3: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA)
The Memorandum of Association (MOA) and Articles of Association (AOA) are prison documents that define the targets, activities, and rules of the enterprise. The MOA and AOA have to be drafted according with the Companies Act, 2013, and ought to be submitted to the Registrar of Companies (ROC) along with the software for registration.
Step 4: Apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN)
To document the incorporation files for a Section 8 Company, you need to attain a Digital Signature Certificate (DSC) and a Director Identification Number (DIN) for all the proposed directors of the corporation. The DSC is used to digitally signal the incorporation documents, while the DIN is a unique identification quantity assigned to each director.
Step 5: File the Incorporation Documents with the Registrar of Companies (ROC)
Once you’ve got received the DSC and DIN, you could report the incorporation documents with the ROC. The incorporation documents include the MOA, AOA, and other files together with the identity proof and cope with proof of the proposed directors, and the address evidence of the registered workplace of the company.
Step 6: Obtain the Certificate of Incorporation
Once the ROC verifies the incorporation files and approves the software, it problems a Certificate of Incorporation. This certificates confirms the formation of the Section eight Company.
Step 7: Apply for the Section 12A and 80G Certificates
Section 12A and 80G of the Income Tax Act provide tax exemption to non-income groups. To avail of those blessings, the Section 8 Company ought to observe for the Section 12A and 80G certificate from the Income Tax Department.
Step 8: Open a Bank Account and Start Operations
Once you have got acquired the Certificate of Incorporation and the Section 12A and 80G certificate, you could open a financial institution account for the Section 8 Company and start its operations.
Conclusion
Starting a Section eight Company in India is an exceptional way for social marketers to make a advantageous impact on society while also making sure monetary sustainability. However, it’s far crucial to word that the technique of starting a Section 8 Company may be time-consuming and involves widespread legal and regulatory requirements.
To make the technique easier, it’s miles beneficial to are looking for the services of a professional consultant or lawyer who can manual you thru the incorporation method and help you follow all the prison and regulatory necessities.
In addition to complying with the criminal and regulatory requirements, it is essential to have a clear knowledge of the targets and sports of the corporation. As a social entrepreneur, you have to make sure that your corporation’s sports are aligned with its objectives and make a high-quality impact on society.
Overall, beginning a Section eight Company in India may be a satisfying and worthwhile enjoy for social marketers who’re dedicated to creating a fantastic effect on society. By following the steps outlined on this manual, you may begin your Section eight Company and contribute to developing a better world for all.
