Section 8 Company Registration
Finaxis makes Section 8 company registration simple, fast, and cheap.
A Section 8 company, as defined by the Companies Act of 2013, or a Section 25 company, as defined by the Companies Act of 1956, is an entity formed with the aim of supporting the artists, science, literature, or information exchange for a charitable intention. These really are limited firms formed under the Companies Act. Under Section 8 of the Companies Act, the government provides certain businesses an exclusive licence.
Section 8 Company Registration
No Minimum Capital
There are no minimum capital requirements for section 8 company registration. This means you can get started with any sum of money.
Tax Benefits
The Organization and also the contributors who donate to Section 8 Company shall get numerous tax exemptions and compensations.
No Stamp Duty
The Section 8 Firm registration does not need to purchase stamp duty since the firm is exempted from the purchase of registration stamp duty.
Separate Identity
Section 8 Company has a distinct legal identity from its members and also has an independent legal existence as a private firm.
Trust
Section 8 Company has higher legitimacy than any other type of charity organisation.
Ownership Transfer
Section 8 Firm members have the ability to quickly shift ownership of the organization.
Checklists For Section 8 Company Registration
When incorporating a Section 8 company, the following things must be taken into account:
- – The corporation may be incorporated as a limited company by shares or guarantee, but not as a company with unlimited liabilities.
- – It might act as a holding company for another firm and advertise another.
- – The corporation cannot be merged with another corporation which is not a Section 8 company.
- – There should be a minimum of one meeting every 6 months.
- – Section 149(1) and Section 178 of the Companies Act, 2013 are inapplicable, as are the Secretarial Standards.
- – Members did not vote via proxy.
Documents Required For Section 8 Company Registration
The following paperwork are necessary for Section 8 Company registration.
- – The Directors’ DSC and DIN.
- – The company’s goals and projected operations.
- – Financial disclosures such as assets and liabilities, 5 year projections, and so on.
- – Documents of all the directors.
- For address proof – rental agreement or sale deed in the name of the company and utility bill.
Section 8 Company Compliances
- A Section 8 company, like every other, must follow all yearly compliance requirements.
- In the event of noncompliance, the business would be considered as inactive and may be struck from the register.
- A section 8 company should also comply with CSR regulations and complete the CSR.
Section 8 Company Tax Exemption
There is a widespread belief that a Section 8 company is exempt from paying taxes since it works to benefit the broader public. But this is not the case. A Section 8 corporation, like every legal organisation, is subject to taxation. To be tax free, a Section 8 firm must seek certification from the Income Tax Authorities for exemptions like Section 12 A, 80G, and so on.
FAQ On Section 8 Company
Yes, first you will have to convert OPC into a private or public company, and then convert it into Section 8 company.
No, Section 8 corporations are exempt from the requirement to nominate an independent director.
No, a Section 8 company must have at minimum of 2 members to be formed.
In average, it requires 20-30 days, and the period required to register a business is determined by the department’s enquiry in the event of a lack of required papers or inaccurate details.
Yes. Upon obtaining ROC clearance, a Section 8 business can be transformed into a private limited company.