Similar to Trusts and Society, Section 8 Company Registration is most preferred form of association for charitable purposes. It is formed to promote research, social welfare, religion, etc. 100% Online Order & Documentation, To Start the process. Chat with Our NGO specialist.
Section 8 company is suitable for the non-profit objectives such as the promotion of commerce, art, science, sports, education, research, social, welfare, religion, charity, protection of the environment and the like. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of a license from the central government under section 8 of the companies act, 2013.
Although, a company registered under section 8 can be a Private or Public Limited Company, its name must not include the words “Private Limited” or “Public Limited”, but must end with any of the following words:
For registering a Section 8 company, the following criteria must be fulfilled:
1. Reserve Unique Name (RUN) is a form filed for reserving a name for a new company or for changing its existing name. This is the first step of incorporating a section 8 company.
2. A section 8 company shall usually have words like Foundation, Federation, Society, Council, Club, Charities, Institute, Academy, Organization, Federation, Chamber of Commerce, Development, Association, etc.
3. The name so approved shall be valid for 20 days
Drafting of MOA, AOA, Declarations & Other Relevant Documents, Filing of SPICe+ Form for Incorporation of Company will take time of 2-3 day
Open Bank Account, transfer capital and then file INC 20A (Declaration to Commence Business of the Company) and complete other compliances after incorproation of section 8 company.
There is a general notion that a Section 8 company need not pay tax as they work towards the welfare of the public at large. But this is not true. A Section 8 company, like any other legal entity, is liable to pay tax. In order to be exempted from Tax, a Section 8 company is required to obtain certification for the said exemptions such as Section 12 A, 80G etc. from the Income Tax Authorities.
