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 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.