Section 8 company
Section 8 company:
A non-profit organization can be registered as a Trust by signing a Trust deed or as a Society under the Registrar of Societies, or as a private limited non-profit business under Section 8 Company under the Companies Act, 2013, in India. A Section 8 company is the same as the popular Section 25 company under the former Companies Act, 1956, one of India's most popular kinds of Non-Profit Organizations. However, Section 25 (as it was in the previous Act) has been renamed Section 8 in the new Companies Act 2013.
The charity company is registered under Section 8 of the Companies Act of 2013, which grants it special status owing to its objectives. The primary goal of creating a firm as a Section 8 Company is to promote non-profit purposes such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc. Section 8 corporations benefit from several exclusions and relaxations compared to other businesses.
A minimum of two directors are required to form a Section 8 Company. Additionally, there is no requirement for a minimum paid-up capital in the case of a Section 8 Company.
TAX BARR will get your business registered as a Section 8 company to complete the registration swiftly without any last-minute hassles.
Benefits of incorporation of Section 8 company:
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Tax and compliance exemptions
The corporation is also exempt from tax & several compliance-related rules. It receives a distinctive status from other entities by registering under Section 8 of the Corporations Act.
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Separate legal identity
This creates a company that can possess and maintain assets and obligations in its own name. The replacement of members or directors does not affect the company's existence or rights and obligations.
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Limited Liability
A Section 8 business provides its members with minimal responsibility restricted to the capital subscribed and paid. Losses and liabilities do not impose a burden on the personal assets of members or directors, allowing the promoters to run the non-profit organizations freely
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No Corporate Title
This exception is offered so that third parties focus on the company's mission rather than its status, presuming it is a profit-making organization. The suffixes "Private Limited" or "Limited" are not necessary.
Documents required:
Photograph
Latest Passport size photograph of Shareholders and Directors
PAN Card
PAN Card of shareholders and Directors.
Foreign nationals must provide a valid passport.
Identity Proof
Voter ID/ Passport/ Driving License of Shareholders and Directors
Address Proof
Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors
Business Address Proof
Electricity Bill/ Telephone Bill of the registered office address in India
DSC
DSC of all directors
required.
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided, if any
Income/Exp Statement
Estimated Statement of Income & Expenditure for next three years
Personal Details
Mobile No &
Email
Other Details
Director Identification Number (DIN)
Memorandum of Association
Articles of Association