We provide Section 8 Company registration in Patna,Non profit organisation registration in Patna Bihar, Charitable organisation registration in Patna Bihar. Section 8 company is a not for profit organization. Not for profit does not mean that the section 8 companies cannot generate profit from their business. Section 8 companies are established for some special purpose. We will give you all information about registration of section 8 company in this article in brief.

Section 8 Company registration

Section 8 company registration means, registration of company as per rules and regulation of companies act, 2013. Section 8 companies incorporated for promoting arts, commerce, charity, education, social welfare, sports, religious or any other social objects. Profits or donation received by section 8 companies is applied for promoting its objects and no any part of its profit distributed as dividend to its members. Section 8 companies can earn profits but the promoters cannot use it for personal benefit. Section 8 companies cannot use “section 8 or private limited or limited” in its name. Profit earn by section 8 companies must used in promoting charitable objects. A section 8 company is like Trust and society. Central government has imposed some restrictions and conditions on section 8 companies. If they don’t fulfill them, government can pass order to wind up the company. In case of any fraud legal action will be taken by ROC against all officers of the section 8 companies. Section 8 companies either private or may be a public company. Registration process of Section 8 companies is different from LLP or normal Private limited companies. A separate license is required to be obtained before incorporation by applying to Regional director (RD). For incorporation of section 8 company (private) minimum 2 members is required.

Advantage of Section 8 Company Registration

Tax benefit.
For complying CSR activities.
No minimum capital is required.
Separate legal entity.
Credible as compared to Trust and society.
No title required.

Documents required for Section 8 Company registration

Copy of Pan Card of all Members.
Copy of aadhar card/ voter ID card/ Passport.
Photograph of all members.
Copy of Bank statements of all directors (Up to date).
Copy of rent agreement of Office premises.
Copy of electricity Bill.
Contacts details of all members.

Procedure of Section 8 Company registration

Apply for DSC of all members.
Preparation of documents.
Name filing.
Section 8 company License filing with RD.
MOA & AOA drafting.
3 years projected P&L balance preparation.
Filing of section 8 company.
Incorporation certificate issued BY MCA.

Section 8 companies are nonprofit organization. It is established for social work not for profit motive. In old companies act, 1956 section 25 was deals with nonprofit organization incorporation. Government of India has made Section 8 company registration to be done online. So it is good news for you. You do not have to visit our office for you work. You can send us all documents with sign through emails. We will do all of your work. You can pay our fee online.

In the landscape of corporate entities, Section 8 Companies stand out as unique entities driven by a noble cause rather than profit-making objectives. These companies, formed under Section 8 of the Companies Act, 2013 (previously Section 25 of the Companies Act, 1956), are established to promote charitable or not-for-profit activities for the greater good of society. In this blog, we’ll delve into the significance of Section 8 Company registration, its benefits, and the essential steps involved in the registration process.

Understanding Section 8 Company Registration:

A Section 8 Company, also known as a not-for-profit company, is formed with the primary objective of promoting charitable, educational, scientific, research, social welfare, or environmental activities. These companies reinvest any profits or income generated back into their objectives rather than distributing dividends to shareholders. Section 8 Companies are exempt from certain provisions of the Companies Act, 2013, applicable to other companies, such as the requirement to use the term “Limited” or “Private Limited” in their names.

Significance of Section 8 Company Registration:

Section 8 Company registration offers several key benefits:

Legal Recognition: Registering as a Section 8 Company provides legal recognition and status as a separate legal entity, distinct from its members or founders. This ensures credibility, transparency, and legitimacy in conducting charitable activities and seeking funding or support.
Tax Exemptions: Section 8 Companies enjoy tax exemptions on income generated from charitable activities under Section 12AA and Section 80G of the Income Tax Act, 1961. Donors contributing to these companies may also avail tax benefits under Section 80G for their donations.
Limited Liability: Members or shareholders of Section 8 Companies enjoy limited liability, meaning their personal assets are protected from the debts, liabilities, or obligations of the company. This encourages participation and investment in charitable endeavors without undue risk.
Access to Funding: Section 8 Companies can raise funds through donations, grants, contributions, and other forms of philanthropic support from individuals, corporations, government agencies, and international organizations. The legal recognition and tax-exempt status of these companies make them attractive to potential donors.
Continuity and Perpetual Succession: Section 8 Companies enjoy continuity and perpetual succession, meaning they continue to exist irrespective of changes in membership, leadership, or management. This ensures stability and sustainability in pursuing their charitable objectives over the long term.

The Process of Section 8 Company Registration:

The process of registering a Section 8 Company involves the following steps:

Name Reservation: Choose a unique name for the company and ensure it complies with the naming guidelines specified by the Ministry of Corporate Affairs (MCA). Submit an application to reserve the chosen name through the MCA portal.
Memorandum and Articles of Association: Draft the Memorandum of Association (MOA) and Articles of Association (AOA) of the company, outlining its objectives, governance structure, rules, and regulations. Ensure compliance with the provisions of the Companies Act, 2013.
Application Submission: Complete the prescribed application form for Section 8 Company registration and submit it to the Registrar of Companies (ROC) along with the MOA, AOA, and other required documents. The documents must be digitally signed by all directors and subscribers.
Verification and Approval: The ROC verifies the application and documents submitted for compliance with legal requirements. Upon satisfaction, the ROC issues the Certificate of Incorporation, officially registering the company as a Section 8 Company.
Obtaining PAN and TAN: Apply for a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department for the registered company. This enables the company to comply with tax obligations and avail tax benefits.
Post-Incorporation Compliance: Fulfill any post-incorporation compliance requirements such as opening a bank account in the company’s name, obtaining necessary licenses or registrations, and maintaining statutory records as per the Companies Act, 2013.

Conclusion:

In conclusion, Section 8 Company registration serves as a powerful mechanism for channeling resources, expertise, and goodwill towards charitable and philanthropic endeavors. By registering under Section 8 of the Companies Act, organizations can formalize their commitment to social welfare, education, healthcare, environmental conservation, and other noble causes. Aspiring philanthropists, social entrepreneurs, and organizations dedicated to making a positive impact on society should consider the option of Section 8 Company registration to maximize their potential for creating meaningful change and leaving a lasting legacy of service and compassion.