Section 8 Company Registration
A Section 8 company registration refers to the process of registering a company under Section 8 of the Companies Act, 2013 in India. Section 8 companies are established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other similar objective. These companies do not aim to earn profits for their members and any income generated is utilized for furthering their objectives.
The registration process for a Section 8 company involves fulfilling certain legal requirements and obtaining the necessary approvals from the Registrar of Companies. This includes drafting a memorandum and articles of association, obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN), applying for name approval, and submitting the incorporation documents to the Registrar of Companies.
Section 8 companies enjoy certain benefits such as tax exemptions and limited liability for their members. By registering under Section 8, organizations can formalize their operations and contribute to social causes in a structured and legal manner.
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Under which act Section 8 Company registration formed ?
The registration of a Section 8 Company Registration in India is governed by the Companies Act, 2013. It provides the legal framework and guidelines for the formation and functioning of Section 8 companies.
What are the benefits we get from Section 8 Company registration ?
Registering a Section 8 company in India offers several benefits to the organization and its members. Some of the key advantages include:
- Tax Exemptions: Section 8 companies are eligible for various tax exemptions under the Income Tax Act, 1961. They may enjoy tax benefits on their income, donations received, and investments made for their objectives.
- Limited Liability: Limited liability is a legal structure that ensures that a company’s owners are not personally liable for the company’s debts or liabilities. Their financial responsibility is limited to the amount they have invested in the company.
- Credibility and Recognition: Being registered under Section 8 of the Companies Act, 2013 enhances the credibility and reputation of the organization. It signifies that the company is established for promoting social welfare or other specified
- Access to Funding: Section 8 companies may find it easier to attract funding and donations from various sources, including government grants, corporate social responsibility (CSR) funds, and philanthropic organizations.
- Perpetual Existence: A Section 8 company enjoys perpetual succession, meaning its existence is not affected by changes in its members or This ensures continuity in pursuing its social objectives.
- Legal Recognition: Registration as a Section 8 company provides legal recognition to the organization, allowing it to enter into contracts, own property, and sue or be sued in its own name.
Overall, registering as a Section 8 company offers a structured and formalized framework for organizations to contribute to social causes while enjoying certain benefits and protections under the law.
Who is eligible for Section 8 Company Registration ?
To register a Section 8 Company Registration in India, the individual needs to affirm the objectives of promoting science, commerce, education, art, sports, social welfare, environmental protection, and similar subjects. The central government has set these parameters.
When a company is registered as a Section 8 company, it intends to invest all profits or income generated solely for the promotion of these objectives. And you’re correct again, a registered Section 8 company has no intentions of paying any dividends to its members.
What is the process of Section 8 Company Registration ?
The process of registering a Section 8 company in India involves several steps to ensure compliance with the Companies Act, 2013. Here is a detailed overview of the entire process:
- Digital Signature Certificate (DSC) and Director Identification Number (DIN):
- – Obtain DSC for proposed
- – Apply for DIN for all
- Name Approval:
- – Submit an application for name availability to the Ministry of Corporate Affairs (MCA).
- – Once the name is approved, it is valid for 20
- Drafting Memorandum and Articles of Association:
- – Prepare the Memorandum and Articles of Association outlining the objectives and rules of the company.
- Incorporation Documents Preparation: – Prepare necessary documents including the Memorandum, Articles, and other required forms.
- Filing with Registrar of Companies (ROC):
- – Submit the incorporation documents along with the required fees to the ROC within 60 days of name
- Verification and Approval:
- – The ROC verifies the documents and if everything is in order, issues a Certificate of Incorporation.
- License Application:
- – Apply for a license under Section 8 of the Companies Act, 2013 after incorporation.
- – Submit the required documents and information for obtaining the license.
- Compliance Requirements:
- – Comply with all the legal requirements and regulations applicable to Section 8 companies.
- – Ensure timely filing of annual returns, financial statements, and other necessary documents.
- Tax Registration:
- – Obtain PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for the
- Commencement of Operations:
- – Once the Section 8 license is obtained, the company can commence its operations for the specified objectives.
What are the required documents Section 8 Company Registration ?
These are the documents you need for registration:
- – Articles of Association (AOA) and Memorandum of Association (MOA)
- – Declaration by the first director(s) and subscriber(s)
- – Proof of office address, like copies of utility bills (electricity, water, or gas)
- – Copy of the certificate of incorporation (COI) of an overseas corporate body (if applicable)
- – Resolution passed by the promoter company
- – Consent of Nominee (INC-3)
- – Residential and identity proof of nominees and subscribers
- – Your identity and residential proof
- – Digital Signature Certificate (DSC)
- – Declaration of unregistered companies
What We Can Offer
Section 8 companies, being non-profit organizations, have specific needs that differ from for-profit businesses. Here’s how Blacktie Legal Services India LLP services can cater to them:
Fundraising and Grant Management:
- Fundraising Strategy: Assist in developing a fundraising strategy aligned with the company’s mission and target donors.
- Grant Proposal Writing: Help with writing compelling grant proposals to secure funding from government agencies, foundations, and individual donors.
- Donor Management: Develop a system for managing donor relationships, tracking contributions, and ensuring transparency and accountability.
Operational Support:
- Accounting and Bookkeeping: Provide accounting and bookkeeping services tailored to non-profit organizations, ensuring proper financial reporting and compliance with tax regulations.
- Project Management: Offer project management support for the company’s social initiatives and programs.
- Impact Measurement: Help develop a framework to measure the impact of the company’s work and demonstrate its effectiveness to stakeholders.
Additional Services:
Marketing and Communications: Assist with developing communication strategies to raise awareness about the company’s mission and attract volunteers and supporters.
Legal and Regulatory Compliance: Offer guidance on legal and regulatory matters specific to Section 8 companies.