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Section 8 Company Registration
An organization that promotes sports, education, research, social welfare, art, science, and environmental protection is known as a Section 8 Company. Section 8 of the Companies Act of 2013 introduces the idea of such companies.
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These businesses are limited in that their income may only be utilized for the objectives that led to its promotion. There is no minimum paid-up capital needed to establish such a corporation in India, however two directors are needed in order to register the company or organization.
Get Section 8 Company Registration from Licit 360 to register your non-profit organization right away! With our user-friendly platform, you can easily register and take advantage of several tax advantages. To become a legally recognized non-profit organization, please make use of our dependable service and simple registration process
Comparison
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Features
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Proprietorship
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Partnership
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LLP
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Company
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Definition
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A business that is owned and run by just one person is known as a sole proprietorship.
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A partnership is a formal agreement between two or more people or organizations to divide the ownership, management, earnings, and liabilities of a firm.
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An LLP is a type of hybrid business form that blends aspects of corporations and partnerships. It shields its partners' personal assets from the business's obligations by providing limited liability.
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A firm is an independent legal body existing apart from its stockholders. Either a public limited business or a private limited company may exist. The board of directors oversees the business's administration and activities. Shareholders own the corporation outright, with liability restricted to their investment.
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Time of Registration
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7-15 working days
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Authority
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Local laws are in charge.
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As per the Partnership Act of 1932
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The LLP Act of 2008
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In accordance with the 2013 Companies Act
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Standards for Compliance
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Observance of income tax laws and other municipal laws
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Observance of income tax laws and other municipal laws
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Respect for Income Tax Laws, Local Laws, the Companies Act, and other relevant laws
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Respect for Income Tax Laws, Local Laws, the Companies Act, and other relevant laws
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Taxation
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The individual's income tax rates are applied on income.
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Generally, income is taxed at the rates applicable to each individual partner.
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taxed as a partnership, with each member paying personal income taxes based on their profit sharing.
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subject to the rates of corporate taxation. Dividends are subject to taxation for shareholders.
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Possession
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In a proprietorship, the company is owned and run by just one person.
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Two or more people, referred to as partners, share management and ownership duties in a partnership
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Due to limited liability, partners' private assets are typically shielded from obligations or liabilities incurred by the company.
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A company's owners, or shareholders, are not the same as it legally. Limited liability protects shareholders from personal assets being
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Advantage
legal acknowledgment
Section Eight The Companies Act of 2013 established recognition and regulation for companies. It gives them credibility as a separate legal body and a legal foundation
Exemptions from taxes
Section Eight Businesses benefit from a number of tax advantages. The excess revenue they receive from their social welfare or charity endeavors is not subject to income tax. In addition, under Section 80G of the Income Tax Act, contributors who make financial contributions to certain organizations are entitled for tax deductions.
eternal life
Section Eight Businesses are everlasting, which means that even in the event that its original founders decide to retire or die, they can still function and achieve their goals. This guarantees their long-term influence and the continuation of their social welfare initiatives.
Obtaining grants and money
Section Eight Businesses can apply for funds, grants, and programs provided by international organizations, corporations, and government departments. Their social activities are expanded and put into action with the help of this financial backing.
Restricted responsibility
A Section 8 Company's shareholders' or members' liability is restricted. The members' personal assets are not at danger in the event of any debts or obligations. This feature gives the promoters financial security and motivates them to support social welfare initiatives
Acceptance of gifts from overseas
Section Eight Under the Foreign Contribution (Regulation) Act (FCRA), businesses are permitted to accept donations and contributions from overseas. This allows them to obtain international funds for their philanthropic endeavors.
Trustworthiness and Credibility
The organization's legitimacy and dependability are increased by its Section 8 Company registration. It reassures all parties involved—donors, volunteers, and recipients—that the business is dedicated to social issues and conducts business with accountability and openness.
Increased impact and reach
Section Eight Businesses are more well-known and visible in the community. They can work along with governmental organizations, non-governmental organizations, and other interested parties to address social concerns and improve communities over
Procedure for Registration
To keep you comfortable, our staff will check any inaccurate or misleading information in the documents you have supplied..
Our top specialists are available to handle your registration requirements and take care of any paperwork requirements.
The relevant expert will continue working with your files to submit your Section 8 Company Registration application.
Once our staff has finished the DIN, DSC, and legalities, please wait for your COI to be issued by ROC.
We will formally establish the Section 8 Company Registration's existence by sharing the COI and distinct CIN from ROC.
FAQs:FREQUENTLY ASKED QUESTIONS
According to India's Companies Act, 2013, a Section 8 Company is a nonprofit organization established to further charitable giving, social welfare, or any other worthwhile goal. These businesses aren't allowed to provide their members dividends; instead, they have to use the money they make to further their declared goals.
In India, the following conditions must be met in order to register a Section 8 Company:
two or more shareholders, either individuals or corporations.
two directors, minimum (individuals).
India must be the primary residence of at least one of the directors.
The suggested business needs a catchy name.
Despite being primarily established for philanthropic or social welfare goals, Section 8 Companies are permitted to make money off of their operations. Nevertheless, dividends cannot be paid to the members from the profits. The excess that is produced needs to be put back into the goals of the business.
Indeed, foreign nationals and NRIs are permitted to hold shares or serve as directors in a Section 8 company. But one director needs to live in India at least.
Depending on the completeness of the application and accompanying documentation, as well as the Registrar of Companies' (RoC) processing time, the registration process may take anywhere from 15 to 30 days.
The Section 8 Company must follow the prescribed process in order to change the registered office address. This involves informing the Registrar of Companies (RoC), revising the relevant documents and records, and getting board and shareholder approval.
Section 8 Companies are eligible for a number of tax breaks, such as an exemption from income tax on excess money earned from charitable activities. In addition, they may be qualified for tax deductions under Section 80G of the Income Tax Act as financial contributors to the organization.
The answer is that a Section 8 company can become a for-profit business. But in order to carry out this procedure, you must abide by all applicable laws and rules, which includes getting the required permissions from the relevant authorities.