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Do ypu want to know, what is section 8 company, and how do you register?<br>Section 8 companies are formed for the purpose of promoting art, science, commerce, sports, education, research, social welfare, religion, and environment protection. These companies need to follow certain rules and regulations laid down by the government and any failure to do so may result in the company's winding up. The company registration in India of these is new and as per the rules specified by the government. The benefits of registering a Section 8 company include tax exemption and creditability. Read this to kn
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What is Section 8 Company, and How do you Register? A Section 8 Company is a specific form of Company that should be as follows: ● It is incorporated for the promotion of commerce, art, science, research, education, sports, charity, religion, social welfare, protection of the environment, or any other objective. ● To promote these objects, it intends to apply all its profits, income, or other earnings. ● And pays no dividend or income to Company's members. Section 25 Company under the Companies Act, 1956 is a previous version of Section 8 Company. Section 8 Companies are a legal form for the "Non-Governmental organizations (NGOs) or Non- Profit Organizations (NPOs)". The income of an NPO or NGO cannot be used for paying out dividends to the Company's members and has to be used to promote charitable objectives and obtain an incorporation certificate from the central government. They are liable to adhere to the rules specified by the government, and failure to comply with the responsibilities stated may lead to the Company's winding up on the government's orders. Also, strict legal action will be taken against all the company members if the objectives laid down by the Company prove to be bogus. Incorporation of a Section 8 Company: The incorporation procedure of company registration in India is a new Section 8 under the Companies Act, 2013, and as per the section, an application with Form No. INC 12 has to be submitted along with the documents mentioned below to the Registrar of Companies. 1. Form no. INC – 13– Section 8 Company's Draft Memorandum of Association (MOA) while no specified format is prescribed for AOA. However, one can adopt Table F provisions. They must be signed by the subscribers along with the name, address, description, occupation along with affixation of the subscriber's photographs. 2. Form no. INC-14– A Declaration is to be affixed with Form no. INC-14 that the draft MOA & AOA are compliant with the norms of section 8 and the requirements of Section 8 have been duly taken care of. Note: The declaration has to be made on stamp paper & should be notarized by a Company Secretary, an Advocate, a Chartered Accountant, or a Cost Accountant practicing the profession. 3. Form no. INC-15– A declaration in Form no. INC-15 should be on stamp paper & notarized by each member of the Company who is applying. 4. Form no. INC-9– Declaration from first directors and subscribers on the relevant State's stamp paper and appropriately notarized. The estimate of the Company's future annual income and expenditure for the next three years, also mentioning the income sources and the expenditure's purpose. All the above documents shall be filed in Spice 32 Form as an attachment.
Benefits of Registering Section 8 Company: 1. Stamp duty got exempt. 2. Under Section 80G of the Income Tax Act, tax deductions are provided to the Donors. 3. Section 8 company can be formed with or without share capital. In the case of a company with share capital, the funds are brought into the business in the form of donations, subscriptions, etc. 4. These types of companies are not required to add suffixes like Limited or Private Limited company at the end of their names. 5. These companies have more creditability as compared to other Non-Profit Organizations. Hoping now you know all about Section 8 Company and this article was knowledgeable to you.
