Section 8 Company
Section 8 Company Registration
A non-profit company that promotes sports, art, science, education, and charity endeavors is known as a Section 8 Company. These businesses use their profits to further these goals rather than distributing them to their shareholders. Understanding Section 8 companies, their documentation requirements, and the company incorporation process is crucial.
We at LegalMedia offer comprehensive services for Section 8 company registration in India. Our team of professionals provides professional and hassle-free services to assist you rapidly and effectively start a Section 8 business. To take advantage of our expert services for registering your Section 8 Company in India, get in touch with us right now.
What is Section 8 Company? – Companies Act, 2013
An organization that promotes the arts, business, science, research, education, sports, charity, social welfare, religion, environmental preservation, or other related activities is considered a Section 8 corporation under the Companies Act of 2013. These organizations don’t pay dividends to their shareholders; instead, they use their earnings to further their goals.
Overview of Section 8 Company Registration
A Section 8 Company is a particular kind of business that was created to support charitable causes, education, social welfare, the environment, the arts, sports, and more. This is in accordance with the 2013 Companies Act.
Promoting non-profit objectives, such as trade, the arts, commerce, education, charitable giving, environmental preservation, sports research, and social welfare, is the primary reason for creating a Section 8 Company. A minimum of two directors are needed to form a Section 8 business, and there is no minimum paid-up capital needed to establish one.
Key Points about Section 8 Company Act
- In India, Non-Governmental Organizations (NGOs) can be registered under the Registrar of Societies or as a non-profit entity under Section 8 Company of the Companies Act, 2013.
- Profit generated by Section 8 Companies cannot be used for purposes other than charitable objectives and cannot be distributed among shareholders.
- Section 8 Companies are similar to the erstwhile Section 25 Company under the Company Act 1956. As per the prevailing Company Act, these are now recognized as Section 8 Companies.
- Section 8 Companies are required to comply with the provisions of the Companies Act 2013. They are mandated to maintain books of accounts, file returns with the Registrar of Companies (ROCs), and comply with GST and IT Act.
- Any changes to the charter documents like the Articles of Association (AoA) and Memorandum of Association (MoA) require the government’s consent.
Documents Required for Section 8 Company
Copy of PAN Card
Copy of Aadhaar Card
Two passport size Photograph
Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
Ownership Proof House Tax
No Objection Certificate
Price
Standard
₹14999
- Section 8 Company Registration (Government fees Included)
Combo
₹29999
- Section 8 Company Registration (Government Fees Included)
- One Year All Compliance Filling (Government Fees Included)
Advantages of Registering a Section 8, Companies Act 2013
1. No Minimum Capital Requirement: In India, there is no specified minimum capital requirement for Section 8 companies. Additionally, the capital structure can be changed at any time to meet the company’s growing needs. This suggests that no share capital is needed to form it.
2. Zero Stamp Duty:The requirement to pay stamp duty on the AoA and MoA of a private or public limited company does not apply to a Section 8 corporation. This is relevant for registering different types of business structures.
3.Membership: A recognized partnership firm can apply for directorship and join as a member in its own right.
4. Exemption to the donors: Under Sections 12A and 80G of the Income Tax Act, donors to Section 8 Companies are excluded from paying taxes.
5.Name: Section 8 A company’s legal name does not required to be followed by the suffix Limited or Private Limited. Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, and Federation are among the names that can be registered.
6.Donation & Funding: Section 8 The company is permitted to collect donations from the public but is not permitted to raise money through deposits. Domestic donations are not restricted. However, a suitable system must be established to keep them in control in order to prevent money laundering situations.
Process Of Registering Section 8 Company
1.Fill our Registration Form & Make the Payment
2.Share the required Documents after CAs Consultation
3.Our Experts will start Drafting the Requirements
4.Once DIN & DSC is registered we proceed for Business Name Approval Process
5.Once Approved, your Section-8 Company is Registered.
