Section 8 Company Registration with MyCAbuddy
A Section 8 Company, known for its non-profit objectives, aims to promote charitable activities, education, arts, sports, and social welfare. MyCAbuddy offers comprehensive services for registering Section 8 companies in India, ensuring a smooth and professional experience. Reach out to us today to kickstart your Section 8 Company registration with MyCAbuddy.
Understanding Section 8 Company
A Section 8 Company operates solely for promoting social welfare and other non-profit objectives. It utilizes its profits towards achieving its mission and does not distribute dividends to its members.
Section 8 Company Registration Overview
Registering a Section 8 Company involves establishing a corporation dedicated to non-profit activities like education, social welfare, and environmental preservation, following the provisions of the Companies Act 2013.
Key Features of Section 8 Company
- Non-Profit Objectives: Focus on promoting charitable objectives like education, social welfare, and environmental protection.
- Tax Exemption: Enjoy tax exemptions under section 12AA of the Income Tax Act.
- Minimal Capital Requirement: No minimum capital requirement offers flexibility.
- Legal Compliance: Must comply with the Companies Act 2013 and other legal regulations.
- Name Flexibility: No requirement to include “Section 8” in the company name.
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Benefits of Section 8 Company Registration with MyCAbuddy
- Tax Exemption: Eligible for 100% tax exemption on profits used for charitable purposes.
- Flexible Capital Requirement: No minimum capital requirement offers flexibility.
- Separate Legal Entity: Section 8 companies have a distinct legal identity, enhancing credibility.
- Increased Credibility: Stringent legal compliance enhances trustworthiness.
- Name Flexibility: Freedom to choose a name without the “Section 8” designation.
Eligibility Criteria for Section 8 Company Incorporation
Indian National or HUF: Indian nationals or Hindu Undivided Families can incorporate a Section 8 Company.
Minimum Directors: At least one director is required.
Non-Profit Objectives: Objectives must relate to promoting social welfare, education, or charitable activities.
Mandatory Legal Requirements for Section 8 Company
- Number of Directors: Minimum one director required.
- Capital Requirement and Name: No minimum paid-up capital required, and no need to affix terms like “private limited” or “limited” in the company name.
- Company Objects: Objectives must be non-profitable and clearly stated in the Memorandum of Association and Articles of Association.
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- Streamlined Registration Process
- Compliance Assurance
- Cost Efficiency
- Employee Welfare
- Expert Guidance
Documents Required for Section 8 Company Incorporation with MyCAbuddy
- Articles of Association (AOA) and Memorandum of Association (MOA)
- Declaration by the first director(s) and subscriber(s)
- Proof of office address
- Certificate of incorporation of an overseas corporate body (if any)
- Resolution passed by the promoter company
- Consent of Nominee (INC-3)
- Identity and residential proof of nominees and subscribers
- Applicant’s identity and residential proof
- Digital Signature Certificate (DSC)
- Declaration of unregistered companies.
Section 8 Company Incorporation Process with MyCAbuddy
- Obtain Digital Signature Certificate (DSC)
- Obtain Director Identification Number (DIN)
- Reserve the Company Name
- File the Application for Incorporation
- Obtain a License for Section 8 Company
- Obtain a Certificate of Incorporation
Donations/Funding of Section 8 Company
Section 8 Companies can accept donations from the public and raise funds through various methods, ensuring compliance with legal requirements.
FAQs
Can foreign nationals incorporate a Section 8 Company in India?
No, only Indian nationals or Hindu Undivided Families can incorporate a Section 8 Company.
Is there a minimum capital requirement for a Section 8 Company?
No, Section 8 Companies do not have a minimum capital requirement.
Can a Section 8 Company distribute profits among its members?
No, profits generated by Section 8 Companies must be utilized for charitable purposes and cannot be distributed among members.
How long does it take to register a Section 8 Company with MyCAbuddy?
The registration process typically takes around 15-20 days, subject to the submission of all necessary documents and approvals.
Can a Section 8 Company change its objectives after registration?
Yes, but any changes to the objectives stated in the Memorandum of Association require government consent.
What are the consequences of non-compliance with legal requirements for Section 8 Companies?
Non-compliance can lead to penalties, fines, and even the dissolution of the company. It’s essential to adhere to all legal requirements.
Can Section 8 Companies accept foreign donations?
Yes, but they must obtain FCRA registration for foreign contributions
Streamline Section 8 Company Registration with MyCAbuddy
MyCAbuddy simplifies the Section 8 Company registration process, ensuring all legal formalities are met. Contact us now to initiate your Section 8 company registration journey with MyCAbuddy.