Section 8 Company Registration with Corpbiz
Fulfilling Dreams, Creating Impact: Elevate Your Mission with Effortless Section 8 Company Registration by Corpbiz - Empower Change, Inspire Growth!
With Corpbiz you can efficiently register Section 8 Company. Corpbiz brings forth a proven track record, 99.9% client satisfaction, and a wide array of services under one roof. Section 8 company registration is beneficial as it gives company tax exemptions, stamp duty free, credibility, a legal separate identity along with other benefits.
One of Asia's top consulting organizations, Corpbiz provides the greatest legal, compliance, audit, risk, and assurance advising services for Section 8 Company registration. Team Corpbiz strives to deliver effective, simple, and personalized inspection, compliance, and operating solutions for Section 8 Company Registration. Associations and Trusts are comparable to Section 8 Companies. A Section 8 Company may register with the goal of benefiting charities. Learn about the paperwork needed for Section 8 Company Incorporation and Registration. The. The primary goal of registering a business as a Section 8 company is to further non-profit goals. Corpbiz provides many services relating to Section 8 company registration which includes drafting of MoA and AoA by legal experts, GST registration services, assistance in obtaining digital signatures and identification numbers for the directors of the company, getting the name approved for the company, application for PAN, TAN and other essential compliances, assistance in preparing all the necessary papers which are mandatory for the registration purpose
Challenges faced during Section 8 Company Registration in India
Name Approval Challenges
There are many regulations that are to be followed at the time of choosing a suitable name for the company. The company's name should be distinct and unique, which is not identical to any existing company. Corpbiz provides expert assistance and guidance in searching for a name and filing the application for the approval of the same.
DSC and DIN Challenges
Every director should have a director's identification number and a digital signature as per the ministry of corporate affairs. Both of these are very vital for filing and authenticating online forms for the registration process. These can be complex and time-consuming procedures. Our team at Corpbiz will ensure DSC and DIN are obtained for the directors.
Complex Necessary Paper Preparation
Preparing and compiling the crucial necessary paper is one of the most time consuming and difficult steps in the registration procedure. Our professional ensures that all the necessary papers are compiled and prepared along with verifying them and submitting them in the prescribed time period given by the authorities.
Issues Relating to Taxation and Other Compliances
There are many compliances relating to taxation which are to be adhered to. Our tax experts at Corpbiz will provide assistance in complying with all the tax rules and regulations like income tax rules, GST, audits etc.
Post Incorporation Challenges
There are many post incorporation compliances which are mandatory to be followed by the company in order to avoid penalties. Experts at Corpbiz will ensure that all these compliances are followed, and penalties are avoided.
Benefits of Section 8 Company Registration in India
There is no minimum required capital
Unlike other businesses like public limited corporations, section 8 enterprises are not subject to any underlying limitations with regard to the minimum capital requirement. However, these organizations are free to adjust their financial structure to reflect the expansion of their business.
Stamp Duty Free
The MoA and AoA of a private or public limited company are free from stamp duty requirements for Section 8 companies. This is appropriate for different types of firm structure registration.
A separate legal entity
Because the Section 8 Company's identity and those of its directors are distinct, the business will endure even in the event that all of the directors lose their ability to manage the company.
By possessing the license granted by the ROC and engaging in a variety of activities, Section 8 Company establishes their own reputation in the market.
Unlike other non-governmental organizations such as Trust and Society, Section 8 Companies are registered uniformly across the country. Moreover, CRC-MCA safeguards their identities.
The promotion of business, the arts, sciences, research, social welfare, sports, education, religion, charity, and environmental protection, among other things, shall be the goals of Section 8 firm.
Contribution and Funding
Part VIII the public may donate to the company, but it is not permitted for them to raise cash through deposits. Domestic donations are not restricted in any way. However, in order to prevent occurrences of money laundering, a suitable system needs to be established to monitor them.
Section 8 firms incorporated under IT Act Section 12AA are eligible for a 100% tax exemption. Because these entities use their profits for philanthropic causes, they are not subject to taxation.
CARO Does Not Apply to Company Requirements
Section 8 Company is not subject to CARO or the Auditor's Report Order.
Easily Manage the Business
The guidelines outlined in the Memorandum of Association apply to this firm. Therefore, management won't be a problem for your business as long as you strictly adhere to the goals you set forth in your MOA.
Reasons Why Corpbiz is India's Top Platform for Section 8 Company Registration
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Advantages of Our Services: Section 8 Company Registration
With more than 10 years of expertise in registration services, Corpbiz is a reputable company that specializes in providing our esteemed clients with full assistance and excellent Section 8 company registration services at cheap rates.
Get in touch with Corpbiz since we promise
Transparency is given top priority by Corpbiz during the registration procedure. Every stage of the licensing process is communicated to the clients in an open and transparent manner. There are no unspoken plans or ulterior motives. In order to guarantee that clients fully comprehend the procedure, they are constantly updated on needs and developments.
Real Time Tracking
Customers have a chance to track the development of their license application in real time. Clients are empowered by this functionality, which allows them to get real-time, uninterrupted status updates on their applications at any time.
Beyond securing the license, Corpbiz offers the best possible expert assistance for compliances after registration. Clients receive ongoing support in conforming to the relevant norms and requirements even after obtaining the license. With this assistance, customers may stay in compliance with all legal requirements and stay out of trouble or danger of fines.
Our Selling Points
Proven track record
We have a great track record of successfully registering private companies and leaving a trail of satisfied clients in our path. Over the years, we have assisted numerous businesses in registrations, providing them with the legal groundwork required to begin their operations. Our satisfied clients witness our expertise and trustworthiness.
A client Focused Strategy
Our distinguishing quality is our steadfast dedication to comprehending and giving each client's particular demands and goals top priority. Since every company is unique, we customize our services to make sure that your objectives are ideally aligned with Section 8 Company registrations.
Accepting the latest technical developments is essential to our strategy. We use cutting edge technologies, such as online accounting services and artificial intelligence (AI), to streamline and expedite the Section 8 registration procedure.
What is Section 8 Company?
A non profit company with a Section 8 designation is one that supports sports, education, science, the arts, and charity endeavors. These businesses' revenues aren't divided among its members; instead, they're used to further these goals. Charitable institutions can benefit greatly from the Section 8 Company, which is regarded as an improved registration option over societies and trusts. Because of how simple it is to register, operate, and maintain, it has grown to be the most preferred option for NGO registration in India.
All NGOs must submit Form CSR-1 on the Ministry of Corporate Affairs (MCA) site in order to register with the Central Government as of April 1, 2021. The purpose of this project is to make it possible to effectively track corporate social responsibility (CSR) spending across the nation. Social organizations that are operating as CSR implementing agency or requesting CSR monies must now complete the CSR-1 Form, which is available on the MCA website.
Part VIII Companies have the legal standing to operate nationally as Non-Governmental Organizations (NGOs) or Non-Profit Organizations (NPOs). The governing body is the sole distinction between it and a trust or society. While trusts and societies are subject to state government rules, Section 8 companies are registered and overseen by the Ministry of Corporate Affairs of the Central Government. It is not mandatory for businesses incorporated under section 8 of the businesses Act to prefix their name with "Ltd." or "Pvt. Ltd."" As suffixes, they might substitute the words "Association" or "Foundation."
Features of Section 8 Company Registration in India
What is the Process of Section 8 Company Registration in India?
Step 1: Select Section 8 Company Goals
Non profit companies created and incorporated using Section 8 of the Companies Act is known as Section 8 Companies. These corporations' goals are limited under Section 8 to the advancement of the arts, business, education, sports, science, and other approved goals. Therefore, deciding on the company's purpose for incorporation is the first stage.
Step 2: Acquire DIN and DSC
Online forms are available for Section 8 Company Registration and Licensing. Therefore, the Authorized Director uses a Class 3 Digital Signature to authenticate or sign them. The Class 3 Digital Signature is available online.
Step 3: Approval of Company Name under Section 8
Getting the ROC to accept the suggested name for your Section 8 Company is the next step. You may submit an online application for this on the MCA website. Verify the availability of section 8 company names before applying to make sure the suggested name is accepted without a problem. We accurately file the application to the ROC and verify the availability of your Section 8 company name.
Step 4: File for a Section 8 Company License
You must first apply for a Central Government Section 8 Company License before submitting an application for Section 8 Company Registration. To do this, you must submit an online application using form INC-12 on the MCA website. A license is issued in form INC-16 following the Central Government's examination of the form.
Step 5: Submit a Section 8 Company Registration Application
You can move on with the application procedure if all requirements for Section 8 Company registration have been satisfied. On the MCA website, an online application is submitted for section 8 business registration. It is imperative that you accurately complete the form and attach the required files. PART B of INC 32 or SPICE + is the form that is utilized for this purpose.
Step 6: The Certificate of Incorporation is issued
Following submission, the application is carefully reviewed by the ROC. The ROC registers the business for the purpose indicated in the application after successfully verifying the information and supporting paper works. As definitive evidence of registration, it produces a Certificate of Registration in the name of the Company. Additionally, a CIN number is assigned to the firm in order to uniquely identify it.
Necessary Papers Required for Section 8 Company Registration in India
Following is the list of some of the essential necessary papers that are required for section 8 company registration in India
Important Compliances under Section 8 Company Registration in India
Section 8 companies must submit a variety of annual compliances and adhere to a number of legal requirements.
Under Section 139 of the Companies Act of 2013, each Section 8 company must designate an auditor to oversee its annual financial reporting. The Ministry of Corporate Affairs (MCA) must receive Form ADT-1 in order to be informed about the auditor's appointment and other pertinent information. The auditor will examine the company's financial accounts every year for a maximum of five fiscal years after being recruited. The Annual General Meeting (AGM) must be held within 15 days following the auditor's appointment. Penalties will be imposed on the company if Form ADT-1 is not submitted by the deadline.
Upholding Statutory Record
In accordance with Section 8 of the Companies Act of 2013, businesses must keep a record that includes information about the loans they have taken out, their directors' bios, changes to their directorship, charges they have made, and investments they have made.
Two yearly general meetings as well as other statutory meetings must be held by Section 8 companies.
Report by Board of Directors
The Director's Report, which includes details on the company's compliance, CSR, accounting, and other appendices, is a requirement for directors of the company. The AOC-4 Form must be submitted with the report.
Financial Statement Preparation: The Company is required to generate financial statements, which include a cash flow statement, balance sheet, and profit and loss statement. These necessary papers have to be submitted to the Registrar of Companies (ROC) and subject to an audit by an auditor.
The company will be penalized if the AOC-4. Form is not filled within 30 days of the AGM date.
Annual Return Filing
The company will be penalized if the MGT-7 Form is not filed within 60 days of the AGM date.
Income Tax Return Filing
In order to provide a summary of the company's overall income, Section 8 corporations are required to file their income tax returns by September 30th of each year.
Income Tax Return
FORM ITR - 6
MGT - 7
Within sixty days of the AGM
Annual Return GST
GSTR - 9
Report of Director
AOC - 4
Within thirty days of the AGM
Forms for Incorporation of Section 8 Company
The Companies Act of 2013 addresses the process of incorporating a Section 8 company. In accordance with this section, the Registrar of Companies must receive an application in Form No. INC.12, together with the materials listed below.
How Corpbiz Help You to Get Section 8 Company Registration?
Our company focuses on making the Section 8 registration procedure as simple and quick as we can. Among the various services we offer are name approvals, DSC and DIN applications, application submission, and much more. Our professional staff has extensive experience with Section 8 company registration approval. Contact us for prompt and simple assistance with your registration requirements so that your company can focus on its essential activities
Why Contact Corpbiz for Section 8 Company Registration?
Frequently Asked Questions
The Companies Act of 2013 has Section 8 Company registered as a non-profit company. When a firm wants to advance the arts, business, education, social welfare, or any other source of money in order to further its goals, it must register as a Section 8 company.
The maximum amount of the face value of the shares that each member takes will be their responsibility. No Minimum Capital needed to form a Section 8 company. It is possible to establish a section 8 company with no paid-up capital.
Although the proprietors are not obligated to distribute any earnings to the shareholders, Section 8 companies are still able to turn a profit in a variety of ways. Since these companies are registered as non-profit organizations, they are not allowed to provide earnings or dividends to its members.
The only companies that can register under Section 8 are those with non-profit goals. These objectives, for which the company was founded, must be expressly stated in the Memorandum of Association and Articles of Association. The Section 8 entity's earnings must either be reinvested in the organization or used for charitable purposes.
There is no minimum required capital
- Stamp Duty Free
- A Separate Legal Entity
- Standardized Registration
- Charitable Objects
- Contribution and Funding
- Tax Relief
- CARO Does Not Apply to Company Requirements
- Easily Manage the Business
OPC conversion is not allowed under Section 8 Company. A one-person company cannot be incorporated as a section 8 company or converted into one, according to Rule 3 of the Companies (Incorporation) Rules, 2014.
Every section 8 company must choose an auditor to manage its annual financial reporting in accordance with Section 139 of the Companies Act, 2013. ADT-1 form is to be submitted for the same. Audits are compulsory for all companies.
According to the Companies Act, a business that aims to further the arts, commerce, science, research, social welfare, religion, the environment, education, sports, charity, or other comparable objectives is classified as a Section 8 company.
Section 8 companies have no restrictions of this kind, meaning they are free to sponsor other businesses and act as holding companies for other businesses. The companies should have the intention of making profits from the same only in the areas which is permitted under section 8 company.
Section 8 companies are not restricted in any way from investing in "for profit" businesses. As a result, they are permitted to own profitable subsidiaries. A subsidiary company is accounted for by a parent company.
Like other companies a board company is mandatory compliance for the section 8 company as well. A minimum of one board meeting must be held by a Section 8 company every six months.
It is crucial to pay attention to the words included in the business name while naming a section 8 corporation. In accordance with the business incorporation guidelines outlined in Section 8 of the 2013 Companies Act. Words like Federation Council, Foundation, Forum, Chambers, Confederation, Electoral trust and others should be used. Terms like Pvt Ltd, Ltd and Public Ltd. should be left out.
In accordance with the Company Act of 2013, the Central government has given the Registrar of the Companies (ROC) permission to provide licenses to Section 8 companies. All the registration related compliances are to be followed as per the rules of ROC and MCA.
Since the Companies Act of 2013 places no restrictions on them, a trust or cooperative society is able to join a Section 8 business. Both the cooperative society and the trust have the same aims as section 8 company.
Sure, Stamp duty exemptions are one advantage of forming a Section 8 corporation. A memorandum of association and articles of association are subject to stamp duty. The Indian Stamp Act of 1899 governs all the regulations pertaining to stamp duty.
Fill out Form MGT-7 to complete the company's yearly return. Within sixty days following the most recent annual general meeting (AGM), this has to be filled. AOC-4 to complete the company's financial statement. The latest AGM must be completed within 30 days.
Digital signatures serve as the only secure approach to fill out necessary papers via an online portal. Therefore, a digital signature from the permitted individual is required for all e-forms on the Ministry of Corporate Affairs (MCA) web.