What do you understand by Section-8 Company Registration?

In India Section 8 of Companies Act, 2013, provides registration for special type of non-profit organization. These types of companies are the ones which are designed to operate for promoting charitable, educational, or social causes rather than for profit. If you are considering to forming up a Non-Profit organization, then you must read understand these major things before registering.

Learning about Section 8 Company

Section 8 Company is an NPO which was established user the Companies Act, 22013. The primary purpose of Section 8 Company is to promote social activities such as free education, charity, art, science, religion or similar objectives that are beneficial to the community. Under Section 8 Companies the profit is not distributed among the partners or shareholders. Instead the profit generated must be reinvested into the company’s activities to further its charitable objectives.

Key Features:

Non-Profit Nature: These companies are formed for charitable purposes only, which means that if the companies are getting any benefits they will not be divided between the members instead all the resources will be directed towards the organization’s goals.

No Minimum Capital Required: Unlike any other companies, Section 8 Companies does not require any minimum capital which makes it easier for the organizations to start working.

Tax Benefits: Section 8 Companies are eligible for tax exemptions under the Income Tax Act, which significantly helps in benefiting them financially.

Regulatory Compliance: The companies registered under Section 8 have to follow all the rules and they also have to take care of any kind of additional rules too. They also have to get their accounts audited and have to submit their annual reports to the Registrar of the Companies.

Distinct Status: Although some of the characteristics are similar with other companies, Section 8 Startup Company Registration are special as they are focused to work for social causes and do not share their profits with their members.

Registration Process

Name Reservation: The first step of registering your company Registered under Section 8 is that you have to choose a unique name and then have to obtain the reservation from the Ministry of Corporate Affairs (MCA).

Document Preparation: You have to prepare and submit several documents including MOA and AOA which will outline the objectives ad governance of the company.

Application Filing: Once you have gathered all the documents, then you have to submit the application for registration along with the documents to the Registrar of Companies (ROC). This includes Form INC-12, which specifies to Section 8 Company registration.?

Approval & Certificate: Once the verification is successfully done, the ROC will provide you a certificate of incorporation. This certificate will confirm that your company is legally recognized under Section 8 Company.

Conclusion

If you are looking to establish a non-profit organization, then Section 8 Company registration Online is perfect for you. You can effectively set up a Section 8 Company by understanding the key features and can create a meaningful impact in your chosen field. Whether your focus is on education, or social welfare, a Section 8 Company helps you by providing a structured and compliant way to pursue your mission.?