#Section 8 Company Registration

[structuredbiiz]

The Comprehensive Guide to Section 8 Company

Introduction to Sector 8 Company

A Section 8 Company, as defined under the Companies Act, 2013, is a non-profit organization established with the purpose of promoting activities that benefit society. These activities can range from commerce, art, science, sports, education, and research, to social welfare, religion, charity, and environmental protection. Unlike other companies, Section 8 Companies are prohibited from distributing profits to their members and must use any income or profits solely for promoting their objectives. This article will delve into the key aspects of Section 8 Company, including their criteria, benefits, formation process, compliance requirements, and how they compare to other non-profit entities.

Criteria for Section 8 Companies

Charitable Purpose

Section 8 Companies are established with the objective of advancing various social, cultural, educational, and environmental causes. The fundamental criteria for these companies include:

Promoting Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity, and Environmental Protection: These are the primary areas where Section 8 Companies focus their efforts.

Utilization of Profits: All profits and income generated by the company must be used to further its charitable objectives. No portion of the profits can be distributed as dividends or profits to its members.

Licensing Requirements: While the incorporation process mirrors that of other companies, Section 8 Companies must comply with additional requirements to obtain the necessary licenses.

Visit our website.

Benefits of Section 8 Companies

Separate Legal Entity and Limited Liability

Section 8 Companies enjoy the status of a separate legal entity, which means they can own, sell, and transfer property, as well as incur debts independently of their members. Additionally, these companies benefit from limited liability, ensuring that the personal assets of members are not at risk for the company's liabilities.

Tax Benefits

One of the significant advantages of forming a Section 8 Company is the potential for various tax exemptions:

12A Registration: This allows the company to be exempt from paying income tax on surplus income. However, post-October 1, 2020, new registrations for income tax exemptions must be obtained under Section 12AB, granting provisional registration for three years.

80G Certificate: Donations made to Section 8 Companies can be eligible for tax exemptions for the donors, which encourages charitable contributions. The 80G Certificate, effective from October 1, 2020, is granted for five years and requires renewal.

Foreign Contributions

Section 8 Companies can receive foreign contributions, provided they obtain registration under the Foreign Contribution Regulation Act (FCRA). This registration is crucial for attracting international funding to support the company's charitable activities. A Section 8 Company must be in existence for a minimum of three years before applying for FCRA registration.

Credibility and Trust

Due to stringent compliance and transparency requirements, Section 8 Companies are often perceived as more credible and trustworthy compared to other non-profit entities. This credibility can enhance their ability to attract donations, grants, and other forms of support.

Formation of a Section 8 Company

Incorporation Process

The process of incorporating a Section 8 Company involves several key steps:

Obtain Digital Signature Certificate (DSC): Required for the proposed directors and members.

Director Identification Number (DIN): Apply for DIN for the proposed directors.

Name Approval: File Form INC-1 to get the company name approved by the Registrar of Companies.

Drafting of MOA and AOA: Draft the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives and governance rules.

License Application: Apply for a Section 8 license by filing Form INC-12 with the necessary documents.

Incorporation Filing: After obtaining the license, file Form SPICe (INC-32) along with MOA, AOA, and other required documents for incorporation.

Required Documentation

Memorandum of Association (MOA) and Articles of Association (AOA)

Declarations by Directors

Proof of Registered Office Address

Identity and Address Proofs of Directors and Members

Compliance Requirements

Annual Compliance

To maintain their status, Section 8 Companies must adhere to several annual compliance requirements:

MCA Filings: This includes filing annual returns, financial statements, and other necessary documents with the Ministry of Corporate Affairs (MCA).

Board Meetings: At least four board meetings must be held annually, along with one annual general meeting.

Audits: Annual financial audits are mandatory to ensure transparency and accountability.

DIR-3 KYC: Directors must comply with Know Your Customer (KYC) requirements.

Situational Compliance

12A and 80G Registration: These are necessary for availing tax exemptions for the company and its donors.

FCRA Registration: Required for receiving foreign contributions.

Trade License: Depending on the nature of the activities undertaken by the company.

Employee-Related Compliances: Professional tax filing, Employees Provident Fund (EPF) registration, and Employee State Insurance (ESI) registration if applicable.

Comparison with Society and Trust

Society

Regulation: Governed by the Society Registration Act, 1860.

Members: Minimum of seven members required for a state-level society and eight for a national level. Family members cannot be members of the same society.

Foreign Contribution: Possible, but FCRA registration is challenging if there are foreign members.

Jurisdiction: Typically state-level jurisdiction.

Trust

Regulation: Governed by the Trust Act or Bombay Public Trust Act.

Members: Trustees can be family members; minimum of two trustees required.

Foreign Contribution: Possible, but FCRA registration cannot be obtained if there are foreign members.

Funding: Government departments may refuse funding if all trustees are family members.

Section 8 Company

Regulation: Governed by the Companies Act, 2013.

Members: Anybody can be a director or member; minimum of two members for private companies and seven for public companies.

Foreign Contribution: Can receive foreign contributions and obtain FCRA registration, making it the preferred choice for such funding.

Governance: Preferred for FCRA due to its structured governance and compliance requirements.

Conclusion

Section 8 Companies provide an excellent framework for individuals and organizations aiming to create a positive social impact through structured and legally recognized means. The benefits of tax exemptions, credibility, and the ability to receive foreign contributions make Section 8 Companies a compelling choice for charitable endeavors. However, it is crucial to adhere to the stringent compliance requirements and maintain transparency to ensure the continued success and integrity of the organization. By following the right procedures and leveraging the benefits, a Section 8 Company can effectively achieve its mission and contribute significantly to society.

[psrcompliances]

Section 8 Company Registration allows you to establish a non-profit organization in India. It involves obtaining a license from the Registrar of Companies, ensuring compliance with legal requirements, and allowing the organization to promote charitable objectives such as education, art, and social welfare.

[vakeelvala]

Annual compliance for section 8 company 2022! Post incorporation compliance for Sec 8 Company! About this video:. There is 5 Annual Compliance of Section 8 Company:. 1. Business of Commencement INC 20A. 2. Dir3 -KYC. 3. MBP-1 (Disclosure Of Interest of Every Director). 4. Prepare Financial Statement. 5. Minimum of Board Meeting in Every Meeting.

[legalpillers24]

Flawless Registration: Document Checklist for Your Section 8 NGO

If you want to establish a non-profit organization with an aim of promoting social welfare, education, art, science, sports, or environmental protection, the Section 8 Company Registration is best for you. It is crucial for you to keep all the essential documents handy for a flawless registration process. In this article, we will discuss about the documents required for Section 8 registration.

Essential Documents Required for Section 8 Company Registration

DSC i.e. Digital Signature Certificate: DSC i.e. Digital Signature Certificate of all the directors must be required for the online registration. It will be used to sign the documents electronically.

DIN i.e. Director Identification Number: All the directors of the company must have to acquire their 8 digit unique Director Identification Number i.e. DIN that has been allotted by the central government.

MOA i.e. Memorandum of Association: MOA i.e. Memorandum of Association is one of the most important document. It defines the objectives & scope of a section 8 Company and must be filed with INC 13.

AOA i.e. Article of Association: AOA i.e. Articles of Association is also a very important document. It will define the internal management & working of the section 8 company.

The other necessary documents are-

Copy of Aadhaar Card of all the directors

Copy of PAN card of all the directors

Email address & contact number of all the directors

Passport size photographs of all the directors

Updated bank statement of saving account of all the directors (not older than 2 months)

Passport of all the directors as identity & nationality proof (in case of foreign nationality)

Any utility bill of the registered address including electricity bill or the telephone bill (not older than 2 months)

A notarized copy of the lease/ rent agreement of office place along with the rent receipt which is not older than 1 month (if available)

NOC given by the Office Owner (if you are not the owner of the registered office)

Conclusion

You can simplify the process of Section 8 Company Registration Online by organizing the above mentioned documents properly. You should make sure that all the forms are accurately filled & submitted in order to establish your NGO, so that you can focus on making a meaningful impact in your chosen field

[jrcompliance1]

Key Benefits of Section 8 Company Registration Process

One of the significant advantages of Section 8 company registration is that a 100% tax exemption is available to Section 8 companies registered u/s 12AA of the IT Act. You must seek the help and guidance of Section 8 company certification consultants, who offer expert guidance and ensure a smooth Section 8 company registration process. Reach out now.

[rinkushaw]

How to Do Registration for Section 8 Company? New Guide

What is Section 8 Company? The Section 8 Company is a legal entity that was created to register partnerships that are formed for managing public utility companies. Section 8 Company is a legal entity incorporated for business that is mainly involved in running charitable or a non-profit organization. There are many ways of registering a Non-profit organization and one of them is through Section 8 Companies. Also, Section 8 Company because it is one of the most popular types of a corporatized form of organization belonging to the charitable/non-profit institution type. It is, in general, formed for carrying out commercial, artistic, scientific, sports, educational, research related, social, religious, charitable or any other benevolent activities in the interest of protection of the environment. Moreover, the profits that Section 8 company may earn shall be used only for the purpose of accomplishing the objects of company and it cannot be utilized for the benefit of any of the member or shareholder. Section 8 of Companies Act 2013 allows formation of company as Private Limited Company and Public Limited Company subject to section 2(63) without compulsory paid up capital. The Company can be incorporated without the addition of the word “Limited” or “Private Limited” or words PARTICULARS CIRCULAR Sion thereof, as the case may be. Also Section 8 Company can be registered with minimum number of two members/shareholders. It also has many tax and compliance advantages such as: With the registration the Section 8 company can carry out its business all across the country and is more often used by government as well as other business entities for providing grants and subsidies as it follows all legal procedures with high corporate compliance and transparency to the core. China Section 8 Company Registration Online has certain features such as; Features of Section 8 Company Registration Online Promotion of charitable objects Section 8 companies are incorporated solely for the purpose of carrying out any business activity which is lawful and beneficial for the formation of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or general public. Therefore, their chief objective is to engaged in charitable and social welfare works. Name of Section 8 Company The Section 8 company shall have some suffix like – Foundation; Forum; Association; Federation; Chambers; Confederation; Council; Electoral trust etc. but it cannot have suffix by the name of “Private Limited Company” or “Limited Company”. License by Central Government The Section 8 Companies have a license provided to them by the central government which enables them to carry business for promotion of religious or charitable objects all over the India Apart from that, there is the certificate of incorporation that is issued to all the companies that register with the corporate body. An example of a license available on Let’s Go Dublin website contains the various terms and conditions that may be included in such a license. Application of Profits Section 8 Company has to use its income, surplus, profit or any other income for the purpose of promoting its objects of religious, charitable or Welfare purpose. Consequently, the owners or members cannot demand any returns on their investment such as dividends, bonuses, or in any other form. The advantages of being a Section 8 Company Registration As per Companies Act, 2013, Section 8 is under the Companies (Registration of Companies) Rules.

Benefits of Section 8 Company Registration Separate legal entity and limited liability.

Section 8 company operates like a normal company under the companies act of India, but it has its independent identity and it is not the member of the company. It is an artificial persons through which can buy property, cause or defend legal proceedings which involve suing or being sued in the courts and which has perpetual existence. Furthermore, it is imperative to add that the Companies registered under section 8 of the Companies Act has limited liability for its members, which means that their liability cannot exceed the value of their shareholding. This means that even in cases whereby a firm was making losses, the shareholders don’t have to sell their own properties in order to pay for their debts.

No minimum capital required

After the Companies Amendment Act 2017, the minimum requirement of capital lakh for a private limited company and a public limited company was abolished. So now a section 8 company can be formed even with zero capital.

Higher credibility

Section 8 Company is known as a modern form of charitable organization. It has more credibility and is preferred by the government and businesses in granting subsidies or giving donations due to high transparency and stringent compliance.

Various Tax Exemptions

Section 8 Company formatting it for utilization is Charitable and thus it meets the qualification for registration under Section 12A/12AA and Section 80G defined under the Income Tax Act 1961. In this section, donors are allowed an amount as a deduction on the amount donated through section 80G and the company is also benefitted on the basis of their surplus income/profits by tax exemption. In addition, the stamp duty for registration of Section 8 Company is may be nil or less.

Less Compliance Burden

Considering the charitable object of Section 8 company, the Ministry of Corporate Affairs (MCA) has given a number of relaxations including no requirement of appointing a company secretary, a shorter notice period for AGM, only 2 directors are sufficient in the board (In case of Public Company), relaxations in board meetings, etc.

[efiletax]

Required Forms for Section 8 Company and Its Purpose

Introduction: Section 8 companies, also known as non-profit organizations, play a crucial role in promoting social welfare and charitable activities in India. Governed by the Companies Act, 2013, these entities are registered under Section 8 of the Act, which grants them certain privileges and exemptions. In this blog, we will explore the required forms for Section 8 companies and their purpose, shedding light on the process of establishment and compliance for these organizations.

Forms Required for Section 8 Company Registration:

Form INC-1: Application for Reservation of Name

Purpose: This form is used to apply for the reservation of a name for the proposed Section 8 company. The name should reflect the objectives and activities of the organization and comply with the naming guidelines specified by the Ministry of Corporate Affairs (MCA).

Form INC-7: Application for Incorporation of Company

Purpose: Once the name is reserved, Form INC-7 is filed to incorporate the Section 8 company. This form includes details such as the proposed company name, registered office address, directors' information, and subscribers' details.

Form INC-12: Application for Grant of License under Section 8

Purpose: Section 8 companies require a license from the Central Government to operate as non-profit organizations. Form INC-12 is filed to apply for this license, providing details of the company's objectives, sources of income, and intended beneficiaries.

Form DIR-2: Consent to Act as Director

Purpose: Directors of the proposed Section 8 company are required to provide their consent to act as directors by filing Form DIR-2. This form includes details such as the director's name, address, and consent to act as a director of the company.

Form DIR-12: Particulars of Appointment of Directors and Key Managerial Personnel

Purpose: Once the directors' consent is obtained, Form DIR-12 is filed to notify the Registrar of Companies (ROC) regarding the appointment of directors and key managerial personnel of the Section 8 company.

Form INC-22: Notice of Situation or Change of Situation of Registered Office

Purpose: Section 8 companies are required to maintain a registered office address within India. Form INC-22 is filed to notify the ROC regarding the registered office address of the company or any changes therein.

Purpose of Required Forms:

These forms facilitate the process of establishing and registering a Section 8 company, ensuring compliance with the legal requirements specified under the Companies Act, 2013.

The forms provide a mechanism for disclosing relevant information to the authorities, such as the company's name, objectives, directors' details, and registered office address.

By filing these forms accurately and timely, Section 8 companies can obtain the necessary approvals and licenses to commence their operations as non-profit organizations, thereby contributing to social welfare and charitable activities in India.

Conclusion: In conclusion, the required forms for Section 8 company registration serve a vital purpose in facilitating the establishment and compliance of non-profit organizations in India. By adhering to the prescribed procedures and filing these forms diligently, Section 8 companies can obtain the necessary approvals and licenses to carry out their charitable activities effectively and contribute positively to society. For more details efiletax.

[growupindia]

[corpbizlegal]

Empowering Change Through Section 8 company Registration

In the realm of non-profit organizations dedicated to social causes, Section 8 Company Registration holds profound importance. It's not just a legal formality; it's a commitment to creating positive change. Section 8 Company Registration signifies that your organization operates within the legal framework, showcasing its commitment to transparency and compliance with regulatory standards. Whether your mission is education, healthcare, or environmental conservation, Section 8 Company Registration is a pivotal step in establishing your organization's credibility.

Corpbiz Section 8 Company Registration Services: Nurturing Your Noble Cause

Corpbiz specializes in providing expert assistance in Section 8 Company Registration, tailored to your organization's unique needs. Our team of professionals possesses in-depth knowledge of the intricacies surrounding non-profit registration, understanding the significance of this process.

We take a comprehensive approach to Section 8 Company Registration, ensuring that your organization not only meets its legal obligations but also establishes a well-structured foundation for credibility. Our Registration services are designed to save you valuable time and effort, allowing you to focus on your organization's mission while we handle the legal intricacies.

Why Choose Corpbiz for Section 8 Company Registration

Expert Guidance: We ensure that your Section 8 Company Registration is in compliance with all applicable laws and regulations.

Efficiency: We streamline the registration process, making it hassle-free.

Impactful Registration: We help you establish a Section 8 Company structure that enhances your organization's credibility and impact.

Don't underestimate the power of Section 8 Company Registration. Trust Corpbiz to help your organization achieve efficient registration while ensuring credibility and compliance. We are committed to ensuring that your organization not only meets its legal obligations but also thrives with a well-structured and credible foundation.

Contact us today to learn how our expertise can inspire change through expert Section 8 Company Registration services. Let us be your trusted partner in making a lasting impact on society, upholding the highest standards of legality and ethical business practices.

[chandan-todi]

Difference between TM (™) and R (®) symbol

We often come across two symbols associated with Trademarks - ‘TM’ and ‘R’. Each symbolizes a different type of trademark. The ‘R’ symbol represents the Registered Trademark, while ‘TM’ represents an Unregistered Trademark. The trademark itself can be a signature, symbol, logo, design, etc., followed by the symbol in superscript.

A trademark is a form of intellectual property that delivers the owner with exclusive rights to use and authorize others to use the trademark with the owner's permission, in exchange for adequate consideration. It serves as a means to identify the origin of a product.

Registered Trademark

A trademark that is officially registered under the Trademarks Act, of 1999 is known as a registered trademark. The registration of a trademark provides the owner with exclusive rights, including the sole use of the mark in relation to their products or services. The registration period for a trademark is ten years, after which it can be renewed. The entire registration process for trademarks is managed by the Trademarks Act of 1999.

Why Register?

It identifies the origin of goods and services

Advertises goods and services

Guards the commercial goodwill of a trader

Protects buyers from buying the second-rate quality goods

Registering a trademark grants the mark a monopoly right within a specific territory, preventing unauthorized use of the trademark in relation to goods and services. The test for infringement is whether a consumer would be confused about the origin of the goods or services. Legal action can be carried against trademark infringement, and registration decreases the burden of proof for the plaintiff.

Any person or entity declaring to be the owner of a trademark used or to be used in the future may apply for registration to the Registrar, of the area of authority under whom the applicant’s place of business falls, in the manner prescribed for trademark registration. In India, registering a trademark takes about 2 to 3 years (when there is no opposition from a third party).

Read more to know about the Difference between TM (™) & R (®) symbols.

[psrcompliances]

PSR Compliance, a business consultant based in Noida, offers business license registration services including BIS Registration, EPR Registration, FSSAI Registration, PSARA Registration, Drug License Registration, RNI Registration, GACC Registration, CDSCO Registration, Spice Board Registration and Company & NGO Registration. For more information feel free visit our official website www.psrcompliance.com and call +91 70658 83416.

[lecielconsulting]

Section 8 Company Registration Fees

The section 8 company registration in india is a part of the business law governing The United States. It represents one of the most important parts of regulation. Section 8 company registration in India is very complicated and it involves lots of costs and time. What makes it more complicated is the fact that you can only register a company if you have a Section 8 status, which doesn’t apply to all people.

[legalpillers24]

(via Documents Required for Section 8 Company Registration (Section 8 NGO))

[biatconsultant]

Things About Section 8 Company Registration in India

Section 8 Company is an association that is enlisted under Section  8 of the Companies Act 2013. The primary goal is to advance different fields including expressions, science, schooling, social government assistance, trade, research, good cause, sports, climate assurance, and numerous other comparable sorts of targets. Every one of the benefits of the association is additionally used for advancing the organization's targets and no profits are being paid to any of the organization's individuals.

The Section 8 Company was earlier part of the Section 25 Act, of 1956 where pretty much the arrangements were comparative. However, the main contrast is that Section 8 has added targets moreover. The biggest example of Section 8 Company is the Confederation of Indian Businesses which has the goal of working with the business and exchange of the country.

What are the Features of Section 8 Company Registration in India?

Some of the Features of Section 8 Company Registration in India are:

The primary point of the company is to advance social help, advance craftsmanship, science, research, insurance of religion, and the climate, and work for society and not procure benefits.

There is no recommended least settled-up money to begin the organization contrasted with other organizations' designs.

These organizations get assets from the general population and are authorized by the focal government.

The obligation of its individuals is restricted.

There is no circulation of benefits among individuals for all intents and purposes against regulation, the benefits procured ought to be utilized for the organization.

The organization can't utilize secretly restricted or restricted toward the finish of its name.

The alteration of any article of the organization can't be made by the focal government.

The individuals can without much of a stretch exchange their portions or different interests with other people.

What are the necessary Documents for Section 8 Company Registration? 

Some of the Documents Required for Section 8 Company Registration in India are:

PAN Card and Aadhar Card of all the Directors

Address Proof (Bank Statement, Electricity bill, telephone Bill). If there are foreign Directors Passport is mandatory.

Passport size photograph of all the Directors

Office Address Proof

If owned Property- Electricity bill/ Water Bill/Registry Copy

If Rented Property- Rent Agreement/ NOC

What is the Basic Requirement of Section 8 Company Registration in India?

 The basic requirements of Section 8 Company Registration in India are:

Not-for-profit business objective as prescribed under Section 8 of the Companies Act.

A minimum of Two Directors are Required for Section 8 Company Registration.

A Minimum of Two Shareholders are required 

At least one Director Shall be a Resident of India 

No Minimum Capital is Required 

PAN cards are mandatory in the case of Indian nationals.

What all forms are required for Section 8 Company Registration in India?

The list of Forms Required for Section 8 Company Registration are:

SPICe+  Application of Incorporation

INC 12   Application for License 

INC 13   MoA ( Memorandum of Association)

INC 14   Declaration from a Practising CA

INC 15   Declaration from each person making the application

INC 16   License to register or incorporate as a Section 8 Company

INC 22   The situation of the registered office

DIR 2     Consent to Directors

DIR 3     Application to Registrar of Company to get DIN (Director Identification Number)

DIR 12    Appointment of Directors

What are the advantages and Disadvantages of Section 8 Company Registration in India?

Advantages of Section 8 Company Registration in India

The Company and the giver appreciate tax cuts. The giver can guarantee a charge exception for giving to a Section 8 Company Registration.

The Company can be framed without the least settled-up capital contrasted with public or privately owned businesses.

The Company is excluded from paying stamp obligation charges during the time spent application.

The Company is distinguished as independent from its individuals and it additionally appreciates consistent presence.

These Companies are more dependable as they are authorized by the focal government which gives more credit contrasted with trust and society.

It isn't mandatory to add postfixes to the organization name, for example, ' confidential restricted' or ' Restricted'

The individuals from the organization partake in the principal benefit and that is a restricted risk.

Some of the Disadvantages of Section 8 Company Registration in India

The benefits of the organization should be used exclusively for social government assistance and for other people.

The benefits procured can't be shared as profits to its individuals, not normal for different organizations.

The power of alter MOA and AOA is just in the possession of the focal government.

The focal government demonstrates a few agreements and they ought to be compulsorily added to MOA and AOA

Despite the fact that these organizations partake in specific expense exceptions that don't mean they are completely responsible for not paying, the benefits acquired by these organizations are burdened.

Read are other Blog to Know More about Section 8 Company Registration in India