What Is A Section 8 Company In India
Section 8 Companies like NGOs Non- Government Organizations are regulated under the rules regulations of the Indian Companies Act 2013. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of a license from the central government under section 8 of the companies act 2013.
Whether a trust society or Section 8 company the Income Tax Act 1961 gives all categories equal treatment.
What is a section 8 company in india. In India a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act2013. Section 8 Companies are basically formed for conducting Charitable activities. Section 8 company is the most popular form of NGO registration in India.
The section 8 company is a part of special business entities. In Companies Act 2013 a Section 8 company can be referred to as any company having the following objectives. It is easy to register run or manage a Section 8 Company in comparison of a Trust and a Society.
We have dedicated page to explain the detailed process of section 8 registration. When it has motive of promoting arts commerce education charity protection of environment sports science research social welfare religion and intends to use its profits if any or other income for promoting its objectives. Section 8 company registration procedure is as follows- Preparation of Digital Signature Certificate DSC and filing for Approval of Name.
Has in its objects the promotion of commerce art science sports education research social welfare religion charity and protection of environment or any other such objects. Thus the application of its profits if any or other income. Intends to apply its profits or any other income in promoting its objects.
Though there are other ways to establish as NGO such as trust formation society registration but section 8 company is the most preferred one. It means generally income tax rate for section 8 company is Nil. The profits of this company if there are any are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders.
Formation of companies with charitable objects etc. Trusts formed under Indian Trusts Act 1880 However Section 8 Companies are considered best due to its systematic constitutional framework. 1 Where it is proved to the satisfaction of the Central Government that a person or.
According to Section 8 1a 1b 1c of the Companies Act 2013 a Section 8 company can be established for promotion of commerce ar. Generally section 8 companies avails exemption under income tax act and its income become exempt from levy of income tax. The section 8 company is a form of company incorporated with only aim for the promotion of commerce art science education research sports charity social welfare religion protection of environment or any such other object.
After launching of Spice forms for section 8 company registration Online registration is possible. A Company is referred to as Section 8 Company when it is registered as a Non-Profit Organization NPO ie. Before you read the entire blog let us quickly summarized what you will get to understand about section 8 company in India.
Section 8 company is a corporation registered as a Non-Profit Organization NPO. An association of persons proposed to be registered under this Act as a limited company. The financial statements directors report and other important documents of a Section 8 Company are easily available online on public inspection and are therefore considered most reliable.
Section 8 company Registration is done online on MCA Portal. NPO Section 8 of Companies Act 2013 A Non Profit making Company is a Company which. Section 8 Company is a non - profit organisation established with the aim of doing social work for the welfare of the section of the society.
In India we can form. The major intent contains the promotion of arts commerce charity education protection of the environment and so forth. Section 8 is a company that is licensed under section 8 of Companies Act 2013 formerly known as the section 25 company under Companies Act 1956 with its main object- To promote social welfare religion charity protection of the environment research education sports commerce art science or any such other object.
Section 8 Companies are being treated like any other company if such company does not availing exemption us 12 of income tax act. Entering into the special business entities. Section 8 Company form of a NGO is most popular form of NGO in India.
A has in its objects the promotion of commerce art science sports education research social welfare religion charity protection of environment or any such other. This article describes the various laws related to non profit organisations in India. A non profit organisations can be registered in India as a Society under the Registrar of Societies or as a Trust by making a Trust deed or as a Section 8 Company under the Companies Act 2013.
Promotion in the field of arts commerce science research education Sports charity social welfare religion environment protection and other similar objectives that leads to.
