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Section 8 Companies

Section 8 Companies

Section 8 Companies are registered by the NGOs or NPOs for getting a corporate form for the purpose of social cause. This social cause includes promotion of commerce, arts, science, sports, education, research, social welfare, religion, charity, protection of environment or any other object

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Section 8 Companies Companies Act 2013 governs various type of Company registration and regulation in India. There are numerous organizations / entities which work for social cause without intention to make profits. In order to fulfill this social cause such organization / entities can register themselves in the corporate form i.e. Section 8 company registration. The objective of section 8 company registrations is promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any other object. Section 8 Companies are prohibited to pay any dividend to its members and entire profit and other income need to necessarily apply for promoting the object of the company. There are numerous tax exemption benefits are available to section 8 companies like 12A registration. This section 12A is governed by Income Tax Act and the holder of this 12A registration is exempt from paying any taxes subject to fulfillment of conditions enumerated in this section. 80G certificate can also be applied by a Section 8 registered companies. This section 80G is governed by Income Tax Act, this 80G certificate entitled to claim deduction by the donor making donations to Section 8 registered companies. Section 8 companies are corporate form of entities formed by NGOs (Non Government Organizations) and NPOs (Non Profit Organizations) these, companies must intend to apply its profits for promoting the object cause for which it is formed. Process for registration of section 8 companies are: 1. Obtain Digital Signature of Proposed Directors. 2. Apply for Name approval of proposed Section 8 company 3. File the MoA and AoA of the company along-with directors details and place of address with appropriate supporting documents. 4. Registrar of Companies will grant Registration Certificate with DIN of all the directors. Apart from Income Tax benefits, there are other numerous benefits entitled to section 8 companies; these companies are exempted from payment of Stamp Duty under Stamp Duty Act. Section 8 registered companies is more recognizable as compared to Trust or Society due to its corporate form and registered under Companies Act. Section 8 registered companies enjoys separate legal entity status from its member, these companies are also exempted from minimum capital requirement. These companies are exempt from CARO requirements and these companies are also exempt from adding “Private Limited” or “Public limited” at the end of their names. Section 8 companies are required to form with the name ending such as association, council, society, charity, foundation, institute, club, charities etc. We at ReturnFilings.Com will understand the purpose of your proposed set-up of Section 8 Companies and thereafter will provide you analysis of registering in this category as compared to other form of business i.e. trust or society covering almost all scenarios to carry out your activities effectively and efficiently. Based upon the Registration Certificate we need obtain a PAN (Permanent Account Number) in the name of registered entity to carry out the business. We at ReturnFilings.Com will apply for PAN on behalf of your Registered Section 8 Company and thereafter provide registration under other regulatory requirement based upon the need of such registration i.e. GST, TAN, Import Export Code etc. Apart from above, even after obtaining registration under various laws, we at ReturnFilings.Com also fulfill various compliance on your behalf in order to ensure proper and smooth functioning of business and to avoid unnecessary interest or penalty for non-compliance. We at ReturnFilings.Com are determinate to provide end to end solution, our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliance need.