Section 8 company
A Section 8 company is essentially a company that obtains its license under Section 8 of Companies Act, 2013. These are non-profit organizations (NPOs) established with the primary purpose of advancing various fields such as commerce, arts, science, sports, education, and research, among others. Unlike for-profit companies, the earnings generated by Section 8 companies are reinvested to further their mission, and no dividends are distributed to their members. These organizations are formally registered to engage in social welfare and charitable activities, working towards the betterment of society.
Enquiry Now
To form such companies, the Central Government issues incorporation certificates, and they must uphold to the regulations set forth by the Central Government. Failure to comply with these obligations as specified by the Central Government can result in the company being dissolved upon the government’s order. Additionally, severe legal actions can be taken against all the members of the company who do not fulfil their responsibilities as per the rules and regulations.
Advantages of Section 8 company Registration in India
Section 8 company registration in India provides several advantages, as outlined below:
Eligibility Criteria for Section 8 Company Registration
For Section 8 company registration in India, certain conditions must be met:
Steps for Section Company Registration in India
The process of Section 8 company registration in Delhi (India) involves the following steps:
Step 1: Get a Digital Signature Certificate (DSC)
Forms needed: DIR-3, DSC
Step 2: Get Director Identification Number (DIN)
Forms needed: DIR-3
Step 3: Reserve the Company Name
Forms needed: INC-1
Step 4: Submit the Incorporation Application
Forms needed: INC-32, MOA, AOA
Step 5: Obtain a License for the Section 8 Company
Forms needed: INC-12
Step 6: Receive the Certificate of Incorporation
Forms needed: INC-16
To summarize, the forms involved in the Section 8 Company registration process include DIR-3, DSC, INC-1, INC-32, MOA, AOA, INC-12, and INC-16.
Documents required for Section 8 Incorporation.
To successfully complete the Section 8 company registration online you will need the following documents:
Providing these documents will facilitate a smooth and efficient process for your Section 8 company registration in India.
Penalty for Non-Compliance under Companies Act
Section 8 company registration offers numerous benefits for those looking to make a positive impact in society while enjoying tax exemptions. Sadiue and Ameen Associates, your trusted taxation experts, can guide you through this process effortlessly. By establishing a Section 8 company, you can promote various noble causes while enjoying the flexibility of no minimum capital requirement, tax benefits, and a separate legal identity. It’s a pathway to contribute to the greater good while staying compliant with the law, and our team is here to assist you every step of the way.