Summary
We at VGC can help you register yours section 8 company.
According to the Companies Act 2013, a Section 8 company is defined as an organization whose objectives are to promote arts, commerce, science, research, education, sports, charity, social welfare, religion, environmental protection, or other similar activities goals. These entities utilize their profits to achieve their mission and do not distribute dividends to their shareholders. The essential purpose of registering a Section 8 Company is to encourage non-profitable goals, including but not limited to trade, arts, commerce, education, charity, environmental protection, sports research, and social welfare. To register a Section 8 Company, a minimum of two directors are required, and there is no requirement for a minimum paid-up capital to set up such a company.
These companies are registered for social welfare and charity of the organization towards the society at large.
The minimum requirements that are necessary for such company are:
* There must be Minimum of two shareholders;
* There must be Minimum of two Directors (Directors and shareholders can be the same person);
* At least one of the Director shall be the resident in India;
* There is No requirement of Minimum capital
* The Income-tax PAN is a mandatory requirement in case of the Indian nationals.
Procedures
Procedure for section 8 company incorporation
Below are the stages to register a section 8 company.
1. Prepare Digital Signature Certificate (DSC) and file name Approval
The first step for section 8 company registration is to prepare DSC. Apply for DSC as soon as possible.
2. Filing of Section 8 Incorporation Forms on MCA Portal
We will proceed to file the section 8 company registration application with the requisite documents before ROC. Once all clarifications are provided to ROC, the ROC shall issue a Certificate of Incorporation along with a Company Identification Number (CIN)
3. MOA and AOA File submission
Memorandum of Association (MOA) and Article of Association (AOA) is required to be attached in spice+.
Registration of Section 8 Company is completely a legal procedure we at VGC can help you to register your NGO.
Characteristics
BENEFITS AND CHARACTERISTICS OF SECTION 8 COMPANY REGISTRATION
1. Tax Benefits = There are numerous tax benefit under the section 8 company Registration in India.
2. No Stamp Duty = No stamp duty is imposed of on the AOA and MOA on its incorporation, which is compulsorily applicable on other forms of companies.
3. Separate Legal Entity = Section 8 Company registration has a separate legal entity. It acquires a distinct legal identity from its members.
4. Credibility = Section 8 company has more credibility than any other form of charitable organization.
5. No minimum capital = There is no minimum capital requirement for section 8 company.
6. Exemption to the donators = the exemption is granted to the donators under section 80G if the section 8 company is registered under section 80G.