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Section 8 Registration
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What is Section 8 Company?
Section 8 company registration refers to incorporating a company under Section 8 of the Companies Act, 2013 in India. Section 8 companies are registered for charitable or non-profit purposes and are considered non-profit organizations.
Some of these activities include healthcare, environmental protection, poverty alleviation, and rural development. In essence, Section 8 companies aim to contribute to the betterment of society by promoting various social causes and undertaking activities that have a positive impact on the community.
In order to register a Section 8 company in India, several steps must be followed. The first step is to obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors of the company. The next step is to apply for the name availability of the company through the MCA portal. Once the name is approved, the company can file the incorporation documents and the necessary fees.
A company registered under Section 8 enjoys benefits such as tax exemptions, ease of doing business, and limited liability. However, it is essential to note that such companies cannot distribute profits among their members and shareholders. Any profits generated must be used to promote the company’s objectives.
In conclusion, Section 8 company registration is a popular choice for individuals and organizations looking to positively impact society through non-profit activities. The process is relatively simple and can be done online, making it a convenient option for those looking to register their company quickly and efficiently.
Benefits and Purpose of Section 8 Company.
The primary purpose of Section-8 Companies lies in their commitment to promoting social welfare and charitable activities. These entities are established with the explicit goal of utilizing their resources and efforts for the greater good of society. By focusing on specific objectives outlined in Section 8 of the Companies Act, 2013, such as education, science, art, and social welfare, Section-8 Companies contribute to the betterment of communities and address pressing societal needs. Unlike for-profit entities, Section-8 Companies prioritize the public interest over profit generation, acting as crucial instruments for positive social change.
Benefits of Non-Profit Organisation
Section-8 Companies enjoy several benefits and exemptions due to their non-profit nature and adherence to specific regulations. Firstly, members of these companies benefit from limited liability, shielding their personal assets from the organization’s obligations. Additionally, Section-8 Companies are exempt from paying income tax on their profits, as long as these profits are applied towards their charitable objectives. This tax exemption allows these entities to allocate more resources directly to their social causes, amplifying their impact.
Section-8 Company Registration Process
- Name Reservation
- Drafting Memorandum and Articles of Association (MOA and AOA
- Application for License
- Scrutiny by Authorities
- Approval from Central Government
- Incorporation Certificate
- PAN and TAN Application
- Bank Account Opening
- Online Filing of Forms
- Offline Documentation
- Commencement of Activities
Frequently Asked Questions
The minimum two person start section 8 company, not need to 3 or 7 persons like as trust or society.
A Section 8 company is a non-profit organization registered under the Companies Act, 2013. Its primary purpose is to promote charitable objectives such as arts, commerce, education, charity, environmental protection, sports, science, research, social welfare, and religion. The income of such companies is not used for paying dividends to members but is solely dedicated to furthering their stated objectives.
An individual or a group of individuals can apply for the registration of a Section 8 company if their purpose or goal is to promote science, commerce, education, art, sports, research, religion, charity, social welfare, environmental preservation, or similar objectives. The government must be satisfied with the proposed objectives.
No, a Section 8 company cannot change its Memorandum or Articles of Association without the approval of the Central Government since its existence is based on the license granted by the government.
No, Section 8 companies are not required to include the terms “Limited” or “Private Limited” in their names, unlike other types of companies.
Registering as a Section 8 company can provide several benefits, such as exemptions and privileges under the Companies Act due to the charitable nature of the organization. Additionally, it can enhance the credibility and trust of the organization among stakeholders, as it demonstrates a commitment to serving the community and promoting social welfare.