There are few simple steps for Section 8 Company Registration:
In India, there are mainly the following types of non-profit organizations:
Section 8 Company as per Companies Act, 2013 (Section 25 as per Companies Act, 1956)
Societies registered under Section 20 of the Societies Registration Act 1860
Trusts formed under Indian Trusts Act 1880
However, Section 8 Companies are considered best due to its systematic constitutional framework. 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 is a non-profit organization that is why they are exempted from some provisions of the income tax. They are also given numerous other deductions and other tax benefits. One of such exemption is under Section 80G of the Income Tax Act, 1961, whereby donors to non-profit organizations may claim a 50% rebate against donations made. The registration accorded under Section 80G shall be valid for normally a period of one-three years.
No, existing Companies can also get converted provided it meets up the compliance norms.
Yes, it is the applicant’s choice to incorporate a Section 8 Company as a private or public limited Company after meeting the compliance requirement i.e. 2 Directors and 2 members in case of private Company and 3 Directors and 7 members in case of public Company. However, One Person Company (OPC) cannot be incorporated as a Section 8 Company as per Rule 3 of the Companies (Incorporation) Rules, 2014.
No, specific exemption to Section 8 Company is not available.
Payment of stamp duty is governed by Indian Stamp Act, 1899 as adopted by the respective state. Some states provide relaxation for payment of stamp duty at the time of incorporation. However, no relaxation is provided by any state on issue of share certificates.
No, there is a specific exemption to Section 8 and One Person Company from complying with the Secretarial Standards. However, Companies must adhere to Secretarial standards in order to raise the corporate governance standards.