Sec 8 Company
A Section 8 company is a type of non-profit organization that is registered under the Companies Act, 2013. A Section 8 company aims to promote various social, charitable, educational, environmental, or other similar objectives and applies its profits and income towards the furtherance of these objectives. A Section 8 company does not pay any dividend to its members and enjoys various tax benefits and exemptions.
ADVANTAGES OF SECTION 8 COMPANY REGISTRATION
There are many advantages of registering a Section 8 company in India, such as:
- A Section 8 company has a separate legal identity and can own property, enter into contracts, sue and be sued in its own name.
- A Section 8 company does not require any minimum paid-up capital to start its operations and can raise funds from various sources, such as donations, grants, subscriptions, etc.
- A Section 8 company does not need to add the words “Limited” or “Private Limited” to its name and can use the words “Foundation”, “Association”, “Society”, “Council”, etc. to indicate its nature and purpose.
- A Section 8 company enjoys various tax benefits and exemptions under the Income Tax Act, 1961 and the Goods and Services Tax Act, 2017. A Section 8 company can also claim deductions for donations made to other Section 8 companies or charitable trusts.
- A Section 8 company is more credible and trustworthy than other forms of non-profit organizations, such as trusts and societies, as it is regulated by the Ministry of Corporate Affairs (MCA) and the Reserve Bank of India (RBI) and has to comply with various statutory and financial disclosures and audits.
Requirements for Section 8 Company Registration
To register a Section 8 company in India, the following requirements have to be fulfilled:
- The company should have at least two directors and two shareholders, who can be individuals or entities. The directors and shareholders can be the same persons.
- The company should have a clear and detailed memorandum and articles of association, specifying its name, objectives, registered office, capital structure, rules and regulations, etc.
- The company should obtain a digital signature certificate (DSC) and a director identification number (DIN) for each of its directors and a permanent account number (PAN) and a tax deduction and collection account number (TAN) for the company.
- The company should apply for a name approval through the Reserve Unique Name (RUN) service of the MCA portal by paying a fee of Rs. 1,000 and submitting up to two proposed names for the company.
- The company should apply for a license from the MCA by filing the SPICe+ form along with the necessary documents, such as the memorandum and articles of association, declaration by the directors and shareholders, affidavit by the subscribers, income tax returns, bank statements, etc. and paying the prescribed fees and stamp duty.
- The company should obtain the certificate of incorporation (COI) from the MCA, which will also contain the company identification number (CIN), the date of incorporation, and the license number.
- The company should apply for the commencement of business certificate from the MCA by filing the SPICe+ form along with the declaration by the directors and the verification of the registered office address within 180 days of incorporation.
- The company should also register for the goods and services tax (GST), the professional tax, the employees’ provident fund (EPF), the employees’ state insurance (ESI), and any other applicable registrations as per the nature and location of its activities.
WHY CHOOSE BASS BIZ FOR SECTION 8 COMPANY REGISTRATION?
Bass Biz is a leading business consulting firm that provides end-to-end solutions for Section 8 company registration in India. Bass Biz has a team of experienced and qualified professionals who can assist you with the following services:
- Bass Biz can help you choose a suitable and unique name for your Section 8 company and obtain the name approval from the MCA within a few days.
- Bass Biz can help you draft and finalize the memorandum and articles of association for your Section 8 company and ensure that they reflect your objectives and vision clearly and accurately.
- Bass Biz can help you obtain the DSC, DIN, PAN, TAN, and other necessary documents for your Section 8 company and its directors and shareholders and file them with the MCA in a timely and hassle-free manner.
- Bass Biz can help you apply for the license and the COI from the MCA and follow up with the authorities for the approval and issuance of the same within the shortest possible time.
- Bass Biz can help you apply for the commencement of business certificate and the other required registrations for your Section 8 company and ensure that you comply with all the legal and regulatory obligations and formalities.
- Bass Biz can also help you with the post-registration services, such as accounting, taxation, auditing, compliance, reporting, etc. for your Section 8 company and help you manage and grow your non-profit organization effectively and efficiently.
Bass Biz has helped many clients in setting up and running successful Section 8 companies in India, across various sectors and domains. Bass Biz has a proven track record of delivering quality and timely services at affordable and transparent prices. Bass Biz also offers customized and flexible solutions to suit your specific needs and preferences.
If you are looking for a reliable and professional partner for Section 8 company registration in India, look no further than Bass Biz. Contact us today and get a free consultation and quote for your Section 8 company registration.
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