Office Address

  • 121 King Street, Australia
  • example@gmail.com
  • (00) 2500-123-4567

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Earendil | Section 8 Company Registration

Section 8 Company

A Section 8 Company in India, as per the Companies Act, 2013, is a type of nonprofit organization formed with the objective of promoting social welfare, charity, education, religion, art, science, sports, or any other charitable purpose. Unlike other companies, it is prohibited from distributing profits to its members and instead utilizes its income and resources for achieving its charitable objectives. These companies must apply any surplus or income generated solely towards the promotion of its objectives and are subject to regulations set forth by the Ministry of Corporate Affairs.

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SECTION 8 COMPANY REQUIREMENTS

  • The company must have a minimum of two directors to register.
  • NRIs and Foreign Nationals may be members of the company but at least one director must be an Indian resident.
  • The Company office must be located in India.
  • PAN Card of Directors and Shareholders.
  • Photographs of Directors and Shareholders.
  • Driver’s license or Aadhar card or Voter card of Directors/Shareholders.
  • In case the Registered Office Address is freehold – the property ownership documents.
  • In case the Registered Office Address is lease hold – the rental agreement.
  • In case of leasehold, NOC from the landlord (Name mentioned in the Electricity Bill or Gas Bill or Water Bill or Property Tax Receipt or Sale Deed) for Registered Office Address.
  • Document of any utility services like telephone, gas, electricity, etc. evidencing the address of the premises in the name of the owner for Registered Office Address.

RESTRICTIONS ON SECTION 8 COMPANY

The right registration for non-profit and charitable organizations. A company limited by guarantee and registered under section 8 of The Companies Act, 2013 is a non-profit company and is popularly known as Section 8 Company.As per the The Companies Act, 2013, a Section 8 Company should promote activities only related to the public cause of stated objects and the income if any should be solely used for promotion of such activities. As the law states it intends to apply its profits, if any or other income in promoting its objects and intends to prohibit the payment of any dividend to its members.

A non-profit organization

  • By drafting a trust deed and registering as a Trust
  • By registering as a Society under the Registrar of Societies
  • By registering as a Non-Profit Company under Section 8 of The Companies Act, 2013









Scope for Sec 8 Company

  • Commerce
  • Art
  • Science
  • Sports
  • Education
  • Research
  • Social welfare
  • Religion
  • Charity
  • Environment protection

BENEFITS

  • Tax Benefits – Section 8 Companies can take advantage of their not for profit objectives to claim tax exemption under Section 12A of the Income Tax Act, 1961
  • No minimum capital investment required – There is no requirement for any minimum share capital to be invested.
  • Transfer of title and ownership – Under Sec 8 of the Income Tax Act, 1961, there is no restriction of transfer of title and ownership of movable and immovable property.


IMPORTANCE OF SEC 80G CERTIFICATE- SEC 8 COMPANY

  • It’s one of the standard tax-saving methods for the taxpayers under the Income Tax Act, 1961
  • It allows a person who donates to a Section 8 Company to get tax exemptions to an extent.
  • However, if the total donation amount exceeds 10% of the total gross income, the excess amount will not be exempted.


IMPORTANCE OF SEC 12A REGISTRATION- SEC 8 COMPANY

  • Sec 12A Registration under the Income Tax Act, 1961 is the tax-saving method for the Section 8 Company
  • With this, the company is free from paying tax after incorporation and for any income in the future.
  • 12A registration can be obtained by all the non-profit Trusts,NGOs and Section 8 Companies.



FCRA REGISTRATION- SEC 8 COMPANY

  • FCRA Registration allows an NGO or Trust or Society to receive foreign contributions to conduct many programs after getting permission.
  • The company must be in existence for 3 years and must not have received any foreign contribution without government approval to get FCRA registration
  • The company must have expended at least Rs.10,00,000 in the first 3 years solely for the cause of the objects for which it was established