The Section 8 Company is a non-profit organization registered under the Companies Act of 2013. Since we all know, a non-profit organization can be registered as a trust by executing a trust deed, a society by registering with the Registrar of Societies, or a non-profit company by registering under Section 8 of the Companies Act, 2013.The most common type of non-profit organization is a Section 8 corporation, which is formed for the purpose of-
- Promotion of commerce,
- Social welfare,
- Protection of environment or any such other related object”.
In layman's terms, a Section 8 corporation must promote public welfare, and the company's profits must be utilized solely to support the designated public cause(s).
WHAT ARE THE BENEFITS OF SECTION 08 REGISTERATION?
- No minimum Capital-There are no minimum capital requirements for section 8 company registration.
- Avail Tax Benefits’-The corporation, as well as the donors who contribute to Section 8 Company, receive various tax advantages and compensations.
- Stamp Duty payments is not Required-The firm is excluded from the payments of stamp duty related to registration, hence no stamp duty is required on the Section 8 Company registration.
- Specific Legal Identity-As just a private/public corporation, Section 8 Having a separate legal entity and legal personality from its members.
- Credibility-When compared with other types of nonprofit organizations, Section 8 Company has higher credibility.
- Transfer of Ownership-Section 8 Company members have the ability to readily transfer ownership of the business.
WHAT DOCUMENTS ARE REQUIRED FOR SECTION 08 REGISTERATION?
The Articles of Association
- Memorandum of Association
- Declaration by the subscribers and by the directors
- A confirmation for the address of the office
- Two months utility bills copy
- Certificate of incorporation of the Outer Country body corporate [If applicable]
- A resolution passed by the global Company [If applicable]
- A recommendation declared by the promotional Company [If applicable]
- The interest of the directors from other entities [If applicable]
- Nominee’s assent
- Identity proof and residential address of the subscribers and the nominees
- Identity proof and residential address of Applicants
- The Declaration/Resolution of the unregistered companies
- DSC (Digital Signature Certificate)
- Any other document [If required]
- Proof of principal place of business
- Evidence of appointment of Authorized Signatory for GSTIN
- Either of the documents– Letter of Authorization/Copy of Resolution passed by BOD
- Managing Committee and Acceptance Letter
- Proof of identity of Authorized Signatory for the opening of a bank account
- Proof of address of Authorized Signatory for the opening of a bank account
- Specimen Signature of Authorized Signatory for EPFO