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Section 8 Company

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Section 8 Company

What is Section 8 Company ?

Section 8 Company is named Section 8 Companies Act, 2013, which pertains established and A section 8 company may be incorporation with object to the promote 'for promoting commerce, research, art, science, education, social welfare, religion, sports, charity, protection of environment or any such as other object', provided profits, if any, or other income applied for the promoting only objects of the company & no dividend is a paid to the members. So, Section 25 Company or Section 8 Company is a company registered under the Companies Act, 2013 for the charitable or not for profit purposes.

How to registration of section 8 company or process of registration

  • Step 1:- Obtaining DIN and DSC Director Identification Number (DIN) and Digital Signature Certificate (DSC) is required for the proposed Directors of the Section 8 Company. DSC & DIN to be obtained for proposed Directors within working 5-to-7 Days.
  • Step 2:- Name Approval and License Once DSC and DIN are available for the least 2 Directors, application for the reservation of name for section 8 company can be made to Ministry of Corporate Affairs MCA. And the name is reserved; a license must be obtained prior to the incorporation.
  • Step 3:- Section 8 Company Registration Once the license is a obtained, registration documents can be submitted to the Ministry of Corporate Affairs MCA along with in application for the registration. MCA will be usually approving application for incorporation in the 5-to-7 Days, subject to the processing time.

Minimum Requirements for Section-8 Company:

From all Directors and Shareholders
  • 2 shareholders.
  • Minimum 2 directors. Directors and Shareholders could be same.
  • Minimum 1 Director should be Indian resident.
  • There is no minimum capital required.
  • Income tax PAN.
  • Identity Proof (Aadhar Card /Voter ID, etc).
  • Passport (mandatory).
  • Proof of residence (Telephone/ Bank Statement/ Electricity/ Mobile Bill).
  • And Registered Office Address Proof (Rent agreement).
  • Documents claiming to the ownership such as Sale Deed or House Tax receipt along with NOC.

Documents Required for section 8 company Registration?

Identity proof of the Directors (PAN Card,Aadhar Card, etc.). Address Proof of Directors(Driving License, Passport , Bank Statement and Aadhar or electricity bill). Digital Signature Certificate or DSC if any. Director Identification Number or DIN if any. Memorandum of Association/MoA. Articles of Association/AoA.
included in Section 8 Company Registration Package
Personal Consultation. DSC for two Directors. DIN for two Directors. Name Search & Approval. AOA /MOA . Payment Government Fees. Registration Certificate. Company PAN Card.

Advantage of Section 8 Company

Tax benefits:  A Section 8 Company is a non-profit organization that is why they are exempted from some provisions of income tax. They also are given numerous other deductions and other tax benefits. They are avail benefits under section 80G the Income Tax Act, 1961. They are also required to the pay less stamp duty as the compared to other organizations. Use of title: Unlike the other companies, who have use the title as ‘limited company’, section 8 company of the IT Act exempts them for use of the any suffix or title, they can still exercise their are functions without informing to the public of their limited liability status. Ease at Transfer of title/ownership: Unlike the limited liability companies who are not allowed to the transfer ownership or title, but per section 8 of the Income Tax Act, 1961 allows the transfer of ownership or title of both movable & immovable interest with in no hurdles or restrictions of the any sort. Share Capital: Unlike the other limited companies like public, private, or one person, companies registered under the section 8 doesn’t required much be share capital. They can be directly funded from the subscriptions or donations made to them. Separate Legal entity A Section 8 Company also are holds its own identity like other companies structures, and has its own separate legal entity standing from the member. A Section 8 Company also has been perpetual existence.

Process Or PROCEDURE FOR INCORPORATION OF an INDIAN SUBSIDIARY COMPANY?

OBTAINING DSC & DIN Get (DSC) & (DIN) of all members and Directors within 5-to-7 days. Name Approval Suggest at least 6 Company name. We will do search for the name availability. Apply ROC for the name approval with adding word Private Limited. MOA & AOA Consent Once name is approved by the ROC File Incorporation document with ROC like AOA or MOA Consent of the Director, Affidavit and declaration from directors etc. Company Incorporation Once Incorporation form is approved by the ROC, ROC shall issue Certificate of the Incorporation with TAN and PAN Number.
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