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THINGS TO KNOW BEFORE YOU REGISTER-SECTION 8 COMPANY REGISTRATION

Section 8 Company has its objects to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. We at 1Stop.in provides you the service at reasonable charges and within stipulated time limit. Section 8 Company has many exemptions under Company law and no stamp duty is imposed while incorporating the same. There are certain tax deductions and exemptions under Income Tax Act.

 

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INTRODUCTION

  • Section 8 Company is a Company that is licensed under Section 8 of the Companies Act, 2013 (the Act), erstwhile known as the Section 25 Company under the Companies Act, 1956. Section 8 Company has its objects to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. the profits, if any, or the other income is applied for promoting only the objects of the company and Also, No dividend is paid to its members.Therefore, Section 8 Company is a company which is registered for charitable or not-for-profit purposes.

introduction

ADVANTAGES

  • Forming of Section 8 company is an easy process

  • The Minimum paid-up capital is not required

  • It is exempted from Stamp duty registration

  • The Tax deductions benefits u/s 12AA and u/s 80G of Income Tax Act to the donors of the company

  • It has Greater flexibility

  • It is easy to register, run or manage a Section 8 Company in comparison of a Trust and a Society.

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List Of Documents Required For Section 8 Company Registration

The Copy of PAN Card of directors.

Director's Identity Proof (Voter Card, Passport, Driving Licence).

Director's Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill not older than 2 months)

Passport Size Photo

Ownership Proof of the registered office address(Electricity Bill, Gas bill, Electricity Bill, Mobile Bill not older than 2 months)

In case of rented premises the rent agreement and the No Objection Certificate from owner

Our Packages for Section 8 Company Registration

BASIC

All Inclusive Fees

PRO

All Inclusive Fees

PREMIUM

All Inclusive Fees

Procedure Of Section 8 Company Registration

Step - 1

To Incorporate A Section 8 Company, An Application Shall Be Made To The Registrar Of Companies In Form No. INC.12,

Step - 2

Draft Memorandum Of Association (MOA) And Articles Of Association (AOA) Of The Company In Prescribed Format (Form No. INC – 13) Where The Photographs Of Subscribers Are Affixed.

Step - 3

A Declaration Is To Be Attached In Form No. INC-14 (On The Stamp Paper, Duly Notarized) .

Step - 4

An Estimate Of The Future Annual Income And Expenditure Of The Company For Next Three Years, Specifying The Sources Of The Income And The Objects Of The Expenditure.

Step - 5

A Declaration (In Form No. INC-15) On Stamp Paper Duly Notarized By Each Of The Persons Making The Application And Form No. INC-9 From Each Subscribers And First Directors, On Appropriate Stamp Paper Of The State And Duly Notarized.

FAQ

Most Frequent Questions And Answers

Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company. The following have to be proved to the satisfaction of the Central Government that:
(a) its objects includes promotion of social welfare, religion, charity, commerce, art, science, sports, education, research, protection of environment or any such other object;
(b) After incorporation, the company intends to apply its profits, if any, or other income in promoting such objects only; and
(c) the company intends to prohibit the payment of any dividend to its members.

Registrars of Companies of respective jurisdictions are delegated with the powers of Central government to issue license to Section 8 Companies.

Yes. As per rule 8(7) of the Companies (Incorporation) Rules, 2014, for the Companies under Section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation and the like etc.

No. Rule 20(1) of the Companies (Incorporation) Rules, 2014 provides that only a limited company registered under this Act or under any previous company law shall make an application to the Registrar for the issue of license. Therefore, a company with unlimited liabilities cannot be registered as a Section 8 Company.

There is no restriction in the provisions of the Companies Act, 2013 for a registered Trust to become a member of Section 8 Company. Provisions of section 89 would be applicable, In case of unregistered trusts.

Yes, section 8 company can promote another company and be a holding company of another company.

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