REGISTRATION
SECTION 8 COMPANY
Happy businesses & Clients.
Partnered banks & Government Orgs.
India Registered
Google Ratings
Customer Satisfaction Guarantee
SECTION - 8
COMPANY REGISTRATION
As per the definition under the Companies Act 2013, a Section 8 Company is a firm that seeks to incentivize the arts, sciences, sports, education, environmental preservation, social welfare, charity, or other comparable goals. There is no distribution of the profits of the Section 8 Company among its directors or its members by any means.
A Section 8 Company can adopt a business structure of a Public Limited Company or a Private Limited Company under the Companies Act 2013. A Section 8 Company enjoys all the benefits of a Public or a Private Limited Company (Based on its business structure) and also enjoy some additional benefits specific to the Section 8 Company. These additional benefits are provided by the Indian Government to incentivize the Section 8 Company, which works for the welfare of the society.
These benefits provided by the Indian Government enables the Section 8 Company to further the cause it supports and increase its impact on the society with much more ease.
ENJOYED BY THE SECTION 8 COMPANY
BENEFITS ENJOYED BY THE SECTION 8 COMPANY
Eligible for Tax Exemption: Since the motive of the Section 8 Companies are inclined towards charity, the Government of India incentivizes such companies by making them eligible for Tax Exemption. Tax Exemption status can be obtained through 12AA and 80G of the Income Tax Act. The first step is to obtain a DSC and DIN for all the directors of the Company. This can be done online through the Ministry of Corporate Affairs (MCA) website.
No Stamp Duty Charges: This is another benefit granted by the Indian Government to a Section 8 Company, that a Section 8 Company is not liable to pay Stamp Duty on the purchase of new assets.
Separate Legal Entity Status: Unlike its other NGO Counter parts such as Trust and Society, a Section 8 Company is a separate Legal entity. Just like any other registered Company, a Section 8 Company has autonomy from its members and has a perpetual existence.
No limit on minimum Capital requirement: Though a Section 8 Company follows the structure of a Public or Private Limited Company, there is no limitation placed on the minimum Capital requirement unlike its Public and Private relatives.
INCORPORATION OF SECTION 8 COMPANY
ELIGIBILITY FOR THE INCORPORATION OF SECTION 8 COMPANY.
A Section 8 Company should satisfy certain prerequisites for its incorporation and enjoy all the benefits listed in the Companies Act 2013.
Motive and Purpose:
- A company is classified as a Section 8 Company, in the Companies Act 2013, only when the firms’ ultimate motive is to incentivize art, literature, science, sports, education, social welfare etc.
- Also, all the Income or profits (if any) generated by the Section 8 Company should be utilized for charitable endeavours.
- No dividend is paid directly or indirectly to the directors or members of a Section 8 Company.
DIRECTORS
NUMBER OF DIRECTORS
Section 8 Company (Private) |
Section 8 Company (Public) |
|---|---|
|
Minimum of 2 Directors are required for its formation and registration |
Minimum of 3 Directors are required |
|
Maximum number of Directors is capped at 15. |
Maximum number of Directors in capped at 15 |
|
The total number of members of a Private Section 8 Company is capped at 200. |
There is no fixed upper limit on the maximum number of members. |
Motive and Purpose:
- A company is classified as a Section 8 Company, in the Companies Act 2013, only when the firms’ ultimate motive is to incentivize art, literature, science, sports, education, social welfare etc.
- Also, all the Income or profits (if any) generated by the Section 8 Company should be utilized for charitable endeavours.
- No dividend is paid directly or indirectly to the directors or members of a Section 8 Company.
INCORPORATION OF A SECTION 8 COMPANY
PROCESS OF INCORPORATION OF A SECTION 8 COMPANY
STEP-1
The first step of Incorporation of a Section 8 Company is to get the DSC (Digital Signature Certificate) and DIN (Director Identification Number) for all the Directors of the Company.
STEP-2
The next step is to Reserve the “Company Name” with the Ministry of Corporate Affairs (MCA). Six name alternatives should be provided in the Company Name Reservation Application in a preferential order and the Registrar will allot the name based on its eligibility. You can also avail the free Name Search option for your Company by calling in Taxkey and our team will let you know it’s availability within two working days. After the reservation of the Company name, it is essential to complete the entire Company Incorporation Process within 3 months or else the MCA will revoke the Reservation.
STEP-3
The Next Step is the where all the necessary details are filled along with attaching the necessary supporting documents in the SPICe+ Form.
The necessary Documents include:
- Digital Signature Certificates of all Directors (DSC)
- Director Identification Number of all Directors (DIN)
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Declaration of the First Directors and Subscribers
- Passport Size Photographs of the Directors and Members
- Proofs of Address and Identity of all the Directors and Members
- Declaration from a Charted Accountant
- Consent of Directors.
Several other documents are necessary based on the special cases for the incorporation of a Section 8 Company. Our Team at Taxkey will guide you through and educate you on every step of the process.
We provide expert advice for all size businesses.
Get expert financial advice and personalized consulting to grow your business. Our team of experienced professionals is committed to your success, no matter the size or stage of your enterprise. Let us help you reach your full potential.
How it works
Easy Step Process
We offer consulting services to businesses. Our experts help you achieve your financial goals.
Simplify your finances with TaxKey Accounting's seamless online platform. From registration to personalized financial plans, we're your trusted partner every step of the way.
Experience convenience with our streamlined delivery process. From order to doorstep, we ensure your items reach you swiftly and securely
Need more help?
Testimonials
Our Clients' Reviews
