Section 8 company is named after section 8 of the companies act 2013. This pertaining to being established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object provided the profits, if any.
A section 8 company registration is similar to trust or society except a section 8 company is registered under the central govt.’s ministry of corporate affairs. Trusts and societies are registered under state govt. regulations.
The income of the section 8 company must be used to promote only charitable objects and can not pay any dividends to the members of the company. The central govt. provides an incorporation certificate to all such companies and also informs them of some restrictions and conditions in case they don’t fulfill them. The central govt. may also order them to wind up the company. In the case, fraud objectives of the company are proved legal actions will be taken against all officers of the company.
For section 8 company registration in Jaipur, the companies need to follow the following instructions
The object of the company must be charitable or to promote art, science, or commerce, etc.
The company intends to apply all its profit in promoting the objective.
The company must assure the prohibiting of the payment of dividend to any of its members.
The documents required in the formation of a section 8 company in Rajasthan are as given below-
PAN for Indian national
Notarized passport copy for foreign nationals
Passport, driving license, Aadhar, bank statements, or electricity bill. These two documents must be valid (recent and less than 2 months).
Rental agreement or sale deed, copy of electricity bill, a property tax receipt
Objection letter from the landlord for the use of premises as a registered office.
Signed incorporation document:
Signed Digital signature application document in hard copy other incorporation documents signed and uploaded as soft copy.
Memorandum of Association:
Article of Association
Director’s details (if Members are other companies/LLP)
Section 8 registration about 25-35 working days.
There are the following steps you need to follow while going for registration under section 8 company details
The first step here is to complete the section 8 form.
The second step here is to obtain DSC and DIN for the directors of the company (if not already obtained).
The third step is a verification and name approval of section 8 company
The fourth step is to apply for the license and COI (certificate of incorporation) of section 8 company
Here in the fifth step, your section 8 company will be ready after all the procedures.
Section 8 company is a non-profit organization that is exempted from some provisions of the income tax act. They are also given numerous other deductions and other tax benefits. They avail benefits under section 80G of the income tax act 1961. They also are required to pay less stamp duty as compared to other organizations.
Unlike the other limited companies like private, public or one-person company, the companies registered under section 8 don’t require much share capital. They can be directly funded from subscriptions or donations made to them.
Unlike the other companies who have to use the title as ‘limited company’, section 8 of the IT act exempts them for the use of any suffix. They can still exercise their functions without informing the public of their limited liability status.
Unlike the limited liability companies who are not allowed to transfer the title or ownership but as per section 8 of the income tax act 1961 allows the transfer of title or ownership of both movable and immovable interest with no hurdles or restrictions of any sort.
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