In order to encourage, support, and promote artistic, scientific, commercial, sports, humanitarian, and other related initiatives, Section 8 Company was founded. A Section 8 Company could be categorised as a non-profit entity. Annual Section 8 Company compliance may be simple with Complynest.
Trusts and associations are comparable to Section 8 Companies. Charity registration is possible for Section 8 Companies. Understand the paperwork needed for section 8 company registration and incorporation. Promoting non-profit goals is the primary goal of registering a corporation as a Section 8 company. Register a Section 8 Company with Complynest, Fast Online Process, No Hidden Fees.
An NGO may be registered as a Section 8 company in accordance with the Companies Act of 2013, a trust in accordance with the Trust Act of 1882, or the general public in accordance with the Societies Act of 1860. The procedure for consolidating an NGO under the "Companies Act 2013" is Section 8 Company Registration. Create a Section 8 company to further "education," "religion," "social welfare," "technology," "charity," "art," "social research," "commerce," "science," "sports," "environmental security," and other causes.
Most latest Section 8 company incorporation under the Companies Act 2013's Sixth Amendment occurred in 2019. The incorporation requirements for joining Section 8 Companies have been reevaluated as of MCA consult organisation sixth Amendment Rules, 2019 dated seventh June, 2019. The regulation came into effect on August 15, 2019.
Subsequently, the new rule has made the permit and section 8 company registration simple. Presently candidates can apply for the registration of Section 8 Companies by means of filling a solitary application in Form SPICe. MCA website has given the following instructions that will dispel any confusion quality of uncertainty:
On August 15, 2019, all pending Form INC-12 SRNs for new companies that will be formed in relation to certain RoCs will be deemed "Rejected." These applicants may lawfully provide SPICe in order to get a License Number and establish Section 8 Companies. Owners of a permit number who are waiting to document a SPICe form so they may combine Section 8 Companies should be aware that the forms won't be ready until the particular delay time is taken into account and the work procedure is changed to create results. Shareholders who have completed filling out their SPICe forms but have not yet submitted their CRC forms may need to wait until the work process change is implemented before submitting their CRC forms.Eligibility Criteria to apply for Section 8 Company Registration
In regard to improving the way toward consolidating Section 8 section companies on 7th June 2019 requirement of the prerequisite of earlier recording INC-12 has been administered vide the Companies (Incorporation) Sixth Amendment Rules,2019.
Name Application/Reservation in the SPICe+ Form
Apply for name accessibility through SPICe+ structure office. It is important for incorporate Section 8 Companies to have words like Electoral Trust, Federation, Council, Association, Chambers, Foundation, Forum, Confederation, in its name.
Candidates can give two names one after another and can perform only one resubmission in the SPICe+ form.
The readiness of MOA and AOA
Update of affiliation functions as a sanction of the organization and frees the domain from the organization's activities. While an article about the relationship of the organization tells about the inner administration of the organization.
Use Form INC-13 to document MOA of a Section 8 Company, additionally, there is no endorsed design referenced for AOA of a Section 8 Company.
Each subscriber needs to sign the notice and article of the
association who will likewise need to give his name, address, depiction, and
occupation, assuming any, within the sight of a base one observer who will
confirm the mark and will happen to sign and include his name, address,
portrayal, and occupation.
Outline- Absolute Number of Board Meetings and its Plenum
According to the exemption warning read with segment 173(1)
and 174(1), Section 8 company registration must have at any rate one gathering
inside six schedule months, and the plenum for its executive gatherings is
eight chiefs or 1/fourth of its complete fixation, whichever is less,
successively. Nonetheless, participation ought to have at least two
individuals.
Issuance of 80G Certificate
80G Certificate is given to a non-benefit association or non-administrative associations (NGO), an 'altruistic' trust or a Section 8 Company by the Income Tax Department'. The prime advantage is that the donor benefits by giving to such an NGO that he gets charge exclusion on half of his foundation as the giver is allowed to reduce their gifts from their Gross Total Income. The point behind the 80G certificate is to elevate more givers to charitable funds to such associations
Issuance of 12A RegistrationWhether it is required that the name of Section 8 organization shall prefix the words like Foundation?
Yes. According to 'rule 8(7) of the Companies (Incorporation) Rules, 2014', for the Companies under 'Area 8 of the Act', the name ought to incorporate the establishment of the word like and so forth. If a Section 8 Company, which is associated with CSR ventures likewise needed to compulsorily
If a Section 8 Company, which is associated with CSR ventures likewise needed to compulsorily agree to prerequisites of section 135 and provide towards CSR?
Yes,
Regardless of whether a 'One Person Company' can be changed into a Section 8 Company?
Yes, one individual organization may change itself into a private/public organization, and afterwards, recovery of such private/public association into Section 8 is reasonable.
Regardless of whether Section 8 Company can be made for finishing warning, counseling administrations to Section 8 Companies?
Yes.
Regardless of whether it is required for a Section 8 Company to assign an Independent Director'?
No. Section 8 Companies are out from the duty of arrangement of independent directors.
What are the relaxations of stamp obligation installment?
Relies upon cases, No relaxation is given by any state on the issue of share certificates.It is mandatory for a Section 8 company to place an auditor to
check and maintain their financial recordings and statements every year.
Board meeting of the company should be conducted twice a year and
the gap between the two board meetings should not be more than 3 months or 90
days.
Section 8 company are needed to file for IT Returns on or before
30th September of the preceding fiscal year. In order to give complete details
of the company’s income, and it is mandatory to file for Income Tax return for
the company. In case, the company is registered under Section 12A and 80G, then
it can use the advantage of tax exemption.
E-form AOC-4 is used to submit the copy of financial reports and
statements. It has to be filed within a month or 30 days from the date on which
the annual general meeting is conducted.
Annual General Meeting of this type of Company should be conducted
yearly on or before 30th September. It is mandatory for all the directors,
shareholders, members, and auditors to be present in the meeting. The formal
notice regarding the meeting has to be sent all concerned members within 21days
notice. Form MGT-15 is used to file the report of the Annual General Meeting
and has to be submitted within a month or 30 days of conducting the meeting.
Form MGT-7 is a form which has to be file the annual return of the
section 8 company. The annual return has to be filed within 60 days from the
date of the Annual General Meeting is held. If there is no Annual General
Meeting is held in a year, then the yearly return should be recorded within
sixty days from the time period or days on which the yearly General Meeting
should have been held and it is 30 September.
If
the company fail to compile the annual return, it can lead to a penalty, hence
the best way to ignore penalty, the Section 8 company has to follow the
compliances within the prescribed period of time.
|
COMPLIANCE |
DUE DATE |
|
AGM or Annual General Meeting |
30thSeptember
of every year |
|
AOC-4 |
Within
30 days of the Annual General Meeting |
|
MGT-7 |
Within
60 days of the Annual General Meeting |
|
Income Tax Return |
30th September
of every year |
Event-based,
as the name advocates, the compliances should be about the event of explicit
occasions of the company. These types of compliances are said to be
non-periodical in nature.
Here is the checklist for Event-Based Compliances For Section 8 Company:
Section
8 Company is bound to give corporate tax as per the Income Tax Act. But by
including
certain measures the Section 8 Company can keep under the exemption from the
income tax.
To enjoy such exemptions Section 8 Company is required to fulfil the mentioned
below
compliances:
Inability
to file Annual Returns is punishable with a penalty of Rs50,000 which may
extend to 5 lakh.
As
the Foreign Contribution and Regulation Act, 2010, a Section 8 Company must
compile special requirements to receive any funds or contributions or donations
from overseas or from outside India.
Yes.
as per Section 8(1) of the Companies Act, 2013 it allows person or association
of persons to be registered as a Section 8 Company on satisfying of certain
terms and procedure as prescribed therein.
As
per the section 149(1) of Companies Act 2013, it should hold Minimum of
two directors for a private limited company and three directors for a public
limited company and maximum of fifteen directors but it is not applicable to
section 8 company and therefore there is no prescription with respect to the
minimum and the maximum number of directors in a section 8 Company.