WHAT IS SECTION 8 COMPANIES?
⦁ It is a body corporate registered as a company under the Companies Act, 2013 for the purpose of charitable and religious cause and is similar to Trusts and Associations.
⦁ It can be established with the objectives of “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment.”
⦁ It would be controlled by the Board of Directors – similar to a private limited company.
⦁ The name of a Section 8 Company must end with any of the words like foundation, association, federation, chambers, confederation, council, electoral trust, etc.
⦁ Also estimate the future annual income and expenditure of the company for next three years and specifying the sources of the income and the objects of the expenditure.
Its motive is social welfare and not for making profit.
Prohibit distributing any dividend to its members.
ELIGIBILITY OF SECTION 8 COMPANY:
Minimum two persons are required to be appointed as a director over the age of 18 years with at least one person being an Indian citizen and resident.
Minimum number of subscriber is Seven (7).
DOCUMENTS REQUIRED FOR INCORPORATION OF SECTION 8 COMPANIES.
1. Copy of PAN of all the directors & Subscribers
2. Identity proof of all the directors & Subscribers – Voters Identity Card/ Passport/ Driving License
3. Address Proof of all the directors & Subscribers – Bank statement / Electricity Bill/ Telephone bill/ Mobile bill
4. Proof of Office address is
- In case premises are rented then Conveyance/ Lease deed/ Rent Agreement, etc. along with rent receipts.
- In case premises are owned by the Director or the Promoter then the Sale Deed/House Tax receipt, etc along with the no objection certificate.
5. Copy of the utility bills (not older than two months)
- Formation of Section 8 Company is an easy process.
- No requirement of minimum paid-up capital.
- It is exempted from Stamp duty registration
- Registered partnership firms can also be a member in this Company in its individual capacity.
- Tax exemptions and deductions benefits is available u/s 12A/ 12AA/ 12AB, 10(23)c and u/s 80G of Income Tax Act.
- Greater flexibility, Transparency, more reliability.
- Government funding is easily granted.
- Enjoy all the privileges and be subject to all the obligations of limited company.
Our Package includes?
- Drafting of documents relating to Incorporation.
- Incorporation Certificate
- PAN Card
- Two digital signatures
- Share Certificates
- 1 Month consultancy after incorporation