How Section 8 Company is Formed?
In India, a Section 8 Company is a particular sort of Company that is enrolled for the advancement of science, schooling, a noble cause, social government assistance, workmanship, climate, and so on. It expects to apply all its pay benefits or other profit in advancing this protest, and it delivers no profit or pay to its individuals. Section 8 Companies are restricted organizations that are consolidated under the Companies Act and they might have been enlisted either as Public Limited or Private Limited Companies. In contrast with Society and Trust, Section 8 Company has more advantages and this kind of Company has greater validity among Government Departments, givers, and different partners.
What are the Benefits of Section 8 Company Registration In India?
Some of the Benefits of Section 8 Company Registration In India Are:
Distinct Legal Identity
Zero stamp Duty
No Minimum Capital Requirement
Exemption to Donors
Membership
Tax Benefits
Credibility
Documents Required For Section 8 Company Registration in India
Office Address Proof
Digital Signature Certificate (DSC)
Identity and Resident Proof of Nominee
Article of Association (AOA) and Memorandum of Association (MOA)
Copy of Utility Bills Such as Electricity Bill or water bill etc
Consent of Nominee (INC-3)
Identity and Resident Proof of the applicants
Copy of Certificate of Incorporation
Declaration by 1st director and subscriber
What is the Process of Section 8 Company Registration?
As soon as the DSC is achieved, now is the right time to fill Form DIR-3 with the ROC to achieve a DIN. The proof of address and personality should be joined to get the DSC.
After the endorsement of DIR-3, the ROC will give a DIN to the future chief.
File Form INC-12 for applying for a license for the sec 8 organization joined with the connection of the important records.
Following the endorsement of the Form, a license inside sec 8 will be conceded in Form INC-16.
Once the grant is gotten, you should record the SPICe+ Form alongside the ROC for joining. Additionally, you should join the connections as referenced before.
Advantages and Disadvantages of Section 8 Company Registration In India
Advantages of Section 8 Company Registration In India are:
Access to tax Benefits
Minimal share capital
Separate Legal Entity
Improved Credibility
Eligible for Foreign Contribution
Disadvantages of Section 8 Company Registration In India are:
Profit Distribution is Not Permissible
Profit cannot be Prime Objective
Restriction on appointing a member as a remunerated officer
Conclusion
Section 8 Companies are normally framed to serve altruistic goals like the advancement of craftsmanship, culture, science, a noble cause, and so on. These organizations experience insignificant legitimate impediments with respect to profiting from lawful status by means of enlistment. However, the equivalent isn't valid for the post-enrollment stage, as these organizations need to submit to different lawful ramifications that go about as a boundary. No benefit distributions to individuals and less strength are a few normal impediments of Section 8 Company Registration In India. Nonetheless, on the tax collection front, these organizations enjoy a few benefits.
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