Company registration is the process during which an entity gets registration to become a separate legal entity. Company registration isn’t only done by the particular organization but of any business which will be private, public, or the non –profit organization which might help the lower group of the society so, that the corporate that is registered under Section 8 company registration can work in line with the law and in proper procedure. Through the registration, it brings several benefits to the corporate because it gets legal protection. it’s mandatory for such organizations and corporations to register under section 8 of the businesses Act, 2013, and to follow the Rules and Regulations provided under this section.
What Is Section 8 Company
Generally, a Section 8 Company may be a non-profit organization that’s formed to push commerce, arts, science, education, sports, research, financial aid, religion, charity protection of the environment, or such another object. the employment of profits from these non-profit companies is to satisfy the target and for the welfare of the corporate.
Under section 8, the corporate is registered under the Central Government’s Ministry of Corporate Affairs whereas, trust and societies are registered under regime regulations.
Various Advantages Of Section 8 Company Registration
- Various exemptions and privileges under the Companies Act 2013
- The company gets an exemption from paying tax.
- Privilege within the deduction of taxes to the donor of the corporate.
- Receipt of Funds within the type of donations.
- Easy transfer of shares
- Exemption for keeping suffix, titles.
Section 8 The Last Name Associated With The Business according To The Company Registration
As the government allows their companies to register as ‘limited’ companies but these kinds of companies cannot use the word ‘Limited or Private Limited’ after their name.
- Electoral trust
The word which is allowable are as follows:
Eligibility Criteria Under Section 8 Company Registration
- The objective of the corporate should be to encourage art education, financial aid, commerce, science, sports research, and financial assistance to the lower-income group.
- The entire fund within the style of donation must be for the target of the corporate.
- The take advantage of the working of the corporate shouldn’t be distributed by the members of the administrators of the corporate in any form i.e., directly or indirectly.
- Vision and company plans for the subsequent 3 years should be clear.
The Statutory Obligation Under Section 8 Company Registration
- The objective of the corporate should be achievable from the revenue and surplus generated by the operation of the corporate.
- The appointment of an organization secretary isn’t necessary.
- No commissions and incentives are going to be provided to the members or directors of the corporate.
- An individual who wants to become a member or director of an organization must bring any minimum share capital in Section 8 company registration.
- The director of the corporate can take a footing in the other company.
- By giving a short period of notice annual general meeting of the corporate can happen.
- The objective and policy of the corporate may be not be altered by the corporate, for alteration prior permission from the central government of India is required.
- If the corporate has obtained 80G or 12A registration from the taxation authority then the profit which has been earned by the corporate is hundred percent tax-free.
Documents Required For Company Registration Under Article 8 Company Registration
- Identity proof of all the members of the corporate.
- Passport size photograph of the members.
- Address proof of all the members.
- If the property is being leased, you must provide a copy of the lease agreement upon registration.
- No Objection Certificate (NOC) from the owner
- Electricity/water bill of the premises
- A sample copy of the signature.
- A brief draft of the target of the corporate
Rules And Regulations Under Section 8 Company Registration
For registration under this section, you would like to follow the below rules and regulations:
- The profit should be only to realize the most objective of the corporate
- Then within three working days directors must obtain Digital Signature together with Director positive identification (DIN).
- Further, the applicant needs to take approval from the Ministry Of Corporate Affairs for the name of the corporate.
- Then the applicant has got to apply for a license from the Ministry Of Corporate Affairs.
- E-file PAN and TAN applications must be submitted by the applicant.
- After the completion of the registration under section 8 of the company’s registration, the PAN and TAN are going to be sent to the applicant by courier.
- Applicants can apply for a checking account within thirty days after registration of the corporate.
- Then the corporate can apply for 80G and 12A registration with the revenue enhancement Authority in order for the company can get various exemptions from paying taxes to the department.