OVERVIEW

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,
• Art,
• Science,
• Sports,
• Education,
• Research,
• Social welfare,
• Religion,
• Charity,
• 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?

 

1. No minimum Capital-There are no minimum capital requirements for section 8 company registration.
2. Avail Tax Benefits’-The corporation, as well as the donors who contribute to Section 8 Company, receive various tax advantages and compensations.
3. 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.
4. Specific Legal Identity-As just a private/public corporation, Section 8 Having a separate legal entity and legal personality from its members.
5. Credibility-When compared with other types of nonprofit organizations, Section 8 Company has higher credibility.
6. 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]

For AGILE-PRO:

• 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