Overview
A Section 8 Company is a kind of non-profit organization. The objective of Section 8 Company is to do charitable activities in the field of art, science, education, and sports. The profits generated by the Section 8 Companies are used for promoting these objectives and are not distributed among the members of the Company.
What is a Section 8 Company registration in India?
A Section 8 Company is a kind of company established to promote social activities in various fields, like education, social welfare, environmental protection, arts, sports, and many more. Section 8 Companies are governed by the Companies Act, 2013.
The primary goal of a Section 8 Company registration in India is to encourage charity in various kinds of social activities, trade, arts, commerce, education, charity, environmental protection, sports, research, agriculture and social welfare. You will need a minimum of two directors to register a Section 8 Company. Criteria of minimum paid-up capital is not applied in the registration of Section 8 Companies.
Benefits of Section 8 Company registration in India
There are various benefits of Section 8 Company registration. Some of them are discussed here:
Tax Exemption: Section 8 companies registered under section 12AA of the Income Tax Act enjoy 100% income tax exemption. It is a significant benefit for Section 8 companies as the profits generated by these companies are non-taxable.
Zero Stamp Duty: You don’t have to pay stamp for Section 8 company registration in India.
No Minimum Capital: You need not to maintain a minimum capital requirement for Section 8 Company registration.
Separate Legal Entity: Section 8 companies have status of distinct legal entities like other companies. It enables these companies to own property, sign contracts, and take legal actions in their name.
Increased Credibility: Non-profit nature of the Section 8 company registration in India enhances their trustworthiness and credibility.
Eligible for Grants: They are eligible to get grants from government and international organizations.
Documents Required for Section 8 company registration in India
The following documents are needed to complete the registration process for a Section 8 company in India:
- Articles of Association (AOA) and Memorandum of Association (MOA) of the company
- Proof of office address, like a copy of utility bills like electricity, water, or gas bill
- A resolution passed by the sponsored company
- Consent of Nominee (INC-3)
- Residential and identity proof of nominees and subscribers are needed for Section 8 company registration online.
- Identity and residential proof of the applicant
- Digital Signature Certificate (DSC)
- Declaration of unregistered companies.
By submitting above-mentioned documents, you can easily register a Section 8 Company in India.
Procedure for Section 8 company registration online
You can register Section 8 companies in India in following manner:
Obtain Digital Signature Certificate (DSC)
It is the first step for Section 8 Company registration. You need to secure a Digital Signature Certificate (DSC) for the proposed directors of the Section 8 Company. It is required for the online filing of documents on the website of the Ministry of Corporate Affairs (MCA) for registering a Section 8 company. You need to apply for DSC by filling in Form DIR-3.
Obtain Director Identification Number (DIN)
After obtaining the DSC, you need to apply for a Director Identification Number (DIN) for the proposed directors. The DIN is a unique identification number issued by the MCA to individuals who want to be directors of a company.
Reserve the Name of Company: Now, you require to reserve the name of the proposed Company with the MCA for Section 8 company registration online. Name of the Section 8 Company must be unique. You can reserve the name of the company by filing Form INC-1.
Application for Incorporation
After the company name is approved, then you need to apply for Section 8 Company incorporation in the next step. The application for incorporation of the company is filed in Form INC-32 along with the Memorandum of Association (MOA) and Articles of Association (AOA) for registering a Section 8 company.
Get a License for Section 8 Company
Once the application for incorporation is granted, a license for the Section 8 Company will be issued to you. Form INC-12 should be filed along with the necessary documents for Section 8 company registration online.
Once the Section 8 Company license issued to you, you can carry any kind of social activity via this and enjoy various benefits discussed above.
Proprietorship Registration
