Let us first take a look at Section 8 Company Definition.
A Section 8 Company means a business entity associated to a Non Profit organization. Unlike other business entities, the purpose of a Section 8 company is not to generate profit. But rather, the purpose of this business entity is to promote charitable causes that involve science, culture, education, religion etc.
The profits earned by a NGO Company (Section 8 Company) are directed towards these purposes, not paid as dividends among its members. As a business entity, the Section 8 Company Registration is done under the Companies Act 2013.
So, to put it is simple, it is a company under section 8 company the Companies act. And being a company registered under section 8, it has many benefits that only come into picture once you start the incorporation process.
Sec 8 Company Registration is the process to incorporate a company under the Companies Act, 2018. the NGO Section 8 Company registration will allow you to establish a section
Here are some of the popular section 9 company examples:
Federation of Indian Chambers of Commerce and Industry, and Confederation of Indian industries, Give India (hopefully) are some of the names in the section 8 company list that make it worthwhile to acquire the certificate of registration.
The corporation registered under Section 8 of Companies Act 2013 are often destined to assist India to move forward. Consider them some section 8 company name examples for now.
In many instances, people refer to it as the Section 8 Company Act, 2013. Is it the right way to define this type of business entity?
No, there is no such term as a Section 8 of Companies Act, as the act that incorporates business entity is the same for all the business entities in India.
These are NGOs under the guise of companies whose objectives it is to help as many people as possible.
However, these are the top 10 section 8 companies in India who have been around for a very long time. Thus, if you want to reach the same level as them, you have to get started today.
After Section 8 Company incorporation, its structure would feel similar to an NGO, a trust or a Society. However, unlike the Society Registration, the NGO Registration that is Section 8 Company formation is dictated by the Companies Act.
Therefore, it is the MCA that is responsible for the formation of this type of company.
There are several benefits associated in incorporating a section 8 company and they are as follows. You can also consider them as Section 8 Company features:
But what do these benefit even mean? Thankfully, our approach to Sec 8 Company registration relies on first making you aware of these perks.
Companies registered under section 8 company are different from the rest. Existing as business entities, their main purpose to promote social welfare – as aspect that has
Thus, let’s now take a deep dive into the these benefits of section 8 company:
The section 8 of Company act defines a business entity those person is not to generate profits, but goodwill among public. And therefore, the government of India saw it fit to provide it several tax exemptions in India.
It is one of the greatest benefits of Section 8 Registration in India.
No minimum capital requirement
A Sec 8 Company incorporation under Section 8 requires no capital to get incorporated. And the reason behind it is simple. It’s altruistic nature motivates the government of India to incentivize its registration by reducing the Section 8 Company registration fees. And the way they do it is by removing any minimum capital requirement.
No stamp duty is requires
Since there is no net worth requirement, there is no need of a stamp paper to incorporate a Section 8 Company in India. It ensures that the directors can register a company without being encumbered by the stamp duty requirements.
Deductions for income tax
For a Section 8 Company, India has placed forth specialized income tax deductions. However, to obtain them, you must also acquire the 80G and 12A Registration for section 8 company in India.
Easily gathering Donations
Donations are the most viable form of earnings for a Section 8 Company, meaning the money acquired from donations is the only source of “income” for this business entity.
However, that money can’t go into paying the members of the business entity, but to promote of the company’s objectives.
You can manage the company easily
A section 8 company is governed by the rules specified in the Memorandum of Association. Thus, as long as you follow the objectives you have specified in your MOA to the tee, management won’t be an issue your company.
Freedom to choose the name
The name of section 8 companies in India need not have the words “Company” or “Limited” integrated with it. This business entity entail a term that emphasizes that the company is an organization – using words such as Foundation, Electoral Trust, Chambers, Federation etc.
Eligibility Criteria for Section 8 Company Incorporation in India
So, who can form a Section 8 Company? The answer is anyone. However, there are some regulatory criteria that you must first take care of.
Thus, before you start the incorporation of Section 8 Company, you have to meet the following eligibility criteria:
Following are the documents required for company incorporation for each director/ shareholder to proceed with section 8 company registration online.
For Directors/Shareholders, the section 8 Company Registration Documents are as follows:
For Registered Office, the Section 8 Company documents are as follows
Make sure that these section 8 company incorporation documents are uploaded in the correct format during the application process.
Once you have these documents, how to incorporate section 8 company? Here is the answer.
The procedure for incorporation of section 8 Company under spice involves the following steps, and none of them should be ignored at any time.
Choose the right Section 8 Company Name: First step of the section 8 company registration procedure is this - you need to decide a good name for your company. The Section 8 Company name rules are relaxed when you compare them to other limited business entities.
For instance, you don’t need to use the name “Section” or “8” or “Company” anywhere in your name. But if you want help, you can refer to our section 8 company name suggestions.
Furthermore, it is always better to ensure the uniqueness of a name by checking the Section 8 Company name availability. Our section 8 company name search can also help in this regard.
Make sure that you follow the rules of sec 8 of companies act. However, make sure that you choose the words federations, authority and others as the Section 8 Company Suffix.
Get the DSC of the directors of your company: The second step of the answer to your question – how to register section 8 company in India – is to get the Digital Signature Certificate. An important step in the formation of section 8 company, this is the process that will help with the authentication of the documents that you upload online.
Draft an MOA of Section 8 Company: MOA refers to Memorandum of Association. It is filed using INC 13 using Section 8 Company. It is the document that details the information about the directors, the shareholders and the objectives of the section 8 company. For instance, if your purpose is to educate, the moa of section 8 company for education should specify that your goal is to promote education.
Draft an Articles of Association: The Section 8 NGO should adhere to specifics rules and regulations. The documents that details those is the Articles of Association.
Fill INC 15: File a joint declaration via Form INC 15 for Section 8 Company. Here, you will declare that all the points mentioned in the Section 8 company MOA are according to the provisions of the section 8 regulations set by the MCA.
Fill INC 14: All the directors of your Section 8 NGO must also file individual declaration via FORM INC 14 for Section 8 Company. They have to individually declare that their roles are clearly defined clearly in Memorandum of Association.
Furnish the remaining documents and fill the online application: The final step of this process is to obtain the certificate of incorporation. And for that, you need to submit the application for section 8 NGO registration online. The portal that facilitates Section 8 India Registration is hosted by Ministry of Corporate Affairs.
Fill the application form: Start filling up the application form for Section 8 company registration online. Make sure that all the details you provide align with the ones mentioned in the rules of Section 8 Non Profit Company.
Also, ensure that you make completely assessed the Section 8 AOA and AOA before entering their details to the application form.
MCA section 8 company rules are pretty strict when it comes to the documents. So pay a thorough attention beforehand.
Get the certificate of incorporation: If the Registrar of Companies accepts your Section 8 company registration form, it will get your company licensed under Section 8 of the company registration act.
As an NGO under section 8 of the companies, you will get access to many benefits from this point forward.
For the incorporation of section 8 company under Companies Act 2013 of MCA has provides special timings. Thus, you can obtain the certificate of registration on time.
As for the Section 8 Company Registration Charges, it would depend upon your stamp duty.
Even if the way to register a section company is online, it does not mean that it is easy to acquire.
This Section 8 Company procedure, in the right hands, won’t take more than week to complete. However, the operative words here are the right hands.
Registering a section 8 company in India under Companies Act 2013 isn’t an easy task for everyone. That’s where, our NGO registration consultant step in to help you. We deliver end to end assistance to register section 8 Company online in India.
Our Assistance in Section 8 Company Registration in India
We, at Registrationwala provide end to end solutions for Section 8 company registration in Delhi and the rest of India. It is because we know all about section 8 company registration in India, down to the minute details. That knowledge helps us in providing you the following services:
If you want to help people and work for the betterment of society, you should choose Section 8 company registration. The process of its formation is not easy. However, through Registrationwala, it can be made easy. Our company registration experts make prospect of Section 8 company incorporation easy for you at a low section 8 company registration cos. Contact our experts and we shall begin with section 8 incorporation.
To procedure for registration of Section 8 Company is as follows:
Here is the Section 8 Company Incorporation Checklist:
No. A Section 8 company cannot be listed since its purpose is to not to generate profit – an aspect a listed company has to adhere to.
There must be at least two directors in a section 8 company.
It all depends on your purpose. However, in most instances, a section 8 company is a much better choice.
The eligibility criteria for a section
A section 8 company only exist to conduct not for profit activities. Thus, no, a section 8 company can’t do business
The process of company registration in Delhi is the same as everywhere else in India. If your question is how to register NGO in Delhi, it will follow the same process as a section 8 company.
A section 8 company differs from a trust because a trust can be incorporated for private purposes as well.
Yes, a section 8 company can receive donations in India.
There is no concept of dividend in a Section 8 Company.
The director salary in a section 8 company varies from NGO to NGO. Often, such concept does not exist.
Yes, our firm can help you with Section 8 Company balance sheet format in excel. Furthermore, we can also help with auditing and other accounting requirements that you might have for your company.
You can incorporate a Section 8 Company limited by guarantee or limited by shares.
Since there is restriction in a section 8 company regarding, issuance of redeemable preference shares is an impossibility.
Yes, you can refer to a section 8 company incorporation a s NGO company registration.
Section 8 Company ITR form to file tax returns is ITR-7. This ITR form for Section 8 Company must be filled up and submitted to the Income Tax Department on an Annual basis.
A section 8 company doesn’t have a concept of dividend since all the profits it generates are poured into the pursuing the tasks mentioned in the Section 8 Company Object Clause.
Yes, Section 8 Companies are private limited companies registered under the Section 8 of the Companies Act, 2013.
There is no restrictions on a Section 8 Company investing in shares for the purpose of profit. However, that profit should still be used to undertake the tasks mentioned in the Section 8 Company MOA.
The cost of obtaining the section 8 company license depends upon the type of activity you want to partake in through your organization. However, the general cost is around INR 31,999/-.
Following is the Section 8 Company compliance Checklist:
A Section 8 Not for Profit Company is an entity that exist to help people. Therefore, the government has provided it several exemption. However, to avail them, an 80G registration for Section 8 Company is important along with 12A Registration. Exemption range from taxation of Section 8 Company .
Yes, it is possible for a Section 8 Company and its members to take loan from a bank.
No, a section 8 company is forbidden from taking deposits from general public.
Yes, but only for certain purposes. For instance, a Section 8 Company can grant loans for the purpose of industry research.
Yes, a section 8 company is indeed a company – a business entity whose purpose is not to generate profit, but goodwill among people who need help.
There are many business entities, registered under the Section 8 of the Companies act.
How to close Section 8 Company?
To enable Section 8 Company winding up, you must relinquish your license that allowed you to operate as a Charitable company.