A Section 8 Company is a non profit organization under the guise of the business entity. Established under the Companies act, it is an organization that has a structure of a company, but a motive of a welfare society. How to incorporate such a unique body in India? Let us discuss.
Section 8 Company Registration has taken many strides during recent times because of the tumultuous world that we live in today. It establishes a non profit organization whose activities range from promotion of social welfare activities to expansion of literature, science and education.
Are there any other benefits of starting this business entity in India?
What are the benefits of section 8 Company incorporation in India?
No business entity exists without perks, and the same goes for a section 8 company. However, one has to really dig deep to understand the following benefits:
- An easy way to help people: If you are someone altruistic looking for help people in the best way possible, then starting a non profit organization is the best way to go about it. And when it comes to the infrastructure of such organization, setting up a Section 8 Company is the easiest of them all. So, if you are willing to help people, starting this company provides a way. Read More: Nidhi Company Registration
- Access to donations: In comparison to society and trusts, Section 8 Companies enjoy the most trust from people. Unlike the former two entities, a company doesn’t need to resort to clever marketing tactics to get donations. It is a company that assists people – that is enough for this business entity to gain trust from the donors.
- Tax exemptions: A section 8 Company can gain tax exemptions by obtaining 80G or 12A registrations. It means that one: it won’t have to pay income taxes for the donations and two, the donors will gain deductions equivalent to the amount they donated to the organization.
With these benefits, it is no surprise that people are rushing to get Section 8 Company Registration online.
What is the process of Section 8 Company Registration?
The procedure to establish a company whose sole purpose is to earn money and then direct it to help people is a simple one:
Deciding on the name of the company: First, you must choose a name. Be as creative as possible, but don’t resort to copying the names of established organizations. After you’ve chosen a unique title to give your business entity an identity, reserve it by filing the RUN application.
Getting the DSC and DIN of the directors: The process of establishing a Section 8 Company is online. Therefore, you require a DSC – Digital Signature Certificate – to log on to the MCA portal and fill the application form. To obtain this document, reach out to a CA with the following information:
- Aadhar card number
- ID proof
- Address proof
DIN is the Director Identification number that MCA issues to prospective directors. Once you use the DSC to log on to the MCA portal, you can input your details and obtain the DIN.
Draft the MOA and AOA
Create a document called the MOA – Memorandum of Association. In there, you will mention the objective of your section 8 company, the social welfare activity you conduct, and the details of the directors and shareholders. Read More: Prepaid Wallet License
Also draft an AOA – Articles of Association – to articulate the rules and regulations of your company.
Gather the rest of the documents: The rest of the documents are as follows:
- ID proof of the directors and shareholders
- Address proof of the directors and shareholders
- Capital details
- Address proof of the place of business
Fill the online application form: You can find the online application form for Section 8 Company incorporation at the MCA portal. Submit the application. There is no Section 8 Company registration fees. However, there can be some section 8 company registration cost, but that depends upon the cost of stamp duty.
Obtain certificate of incorporation: The registrar of companies will thoroughly scrutinize your application form. If your application satisfies the regulatory standards the Registrar seeks, you will obtain the company incorporation certificate.
Conclusion
A Section 8 Company is a non profit organization with the structure of the company. This organizational approach allows this entity to establish solid grounds when conducting its social welfare activities. If you want to register your section 8 company in India, consult with Registrationwala. Read More: Dealer Certificate
How to establish a section 8 company in India? Read this blog to learn about the intricacies of section 8 company registration. Call us to know more.
