Section 8 Registration

Exploring the Impact
of Section-8 Companies

A Section-8 Company is a non-profit organization that benefits the community by promoting fields such as science, sports, arts, education, social welfare, religion, charity, and environmental protection. It reinvests its profits to further its objectives and does not distribute dividends to members. This concept, originally known as Section 25 under the Companies Act, is now referred to as a Section-8 Company, serving a long-established purpose in society.

It focuses on various causes, including women empowerment, children's education, community development, social welfare, animal and plant protection, child labor, environmental conservation, and other non-profit activities to achieve its objectives.

Section  8 Registration
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A Section-8 Company can only be registered with names including terms such as foundation, forum, association, federation, society, council, academy, institute, charities, chamber of commerce, and more.

If you're passionate about helping others and improving society, registering a Section 8 company is the ideal choice. While the formation process can be complex, Asia Pacific Tax Solutions & Legal Advisors will assist you with the registration and ensure full compliance with all legal requirements after registration.

Analysis on Section 8 Company

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Key Benefits

Many privilege and exemption under company law
Donor of the company can claim Tax deduction under section 80G of the income tax Act
No RBI Approval required
Can lend Unsecured loan
Can lend Unsecured loan
No Stamp duty required
Can collect donations easily
Defaulters can be sued for non-payment
No Demographic Barrier
Best Rate of Interest
Best Rate of Interest
Minimum capital not required

Registration & benefits of section 8 company

A Section-8 Company can be formed by 2 persons only, by complying with the prescribed formalities of the Companies Act. Easy formation:
Credibility:

Section-8 Company has more importance as compared to Trust or Society. The act provides many privileges and exemptions under the law to the section-8 Company as compared to Trust or Society.

Limited Liability:

The liability of the shareholder is limited up to unpaid subscription money in his name and the personal Asset does not get affected by it.

Separate Legal entity:

Section 8 Company is an artificial distinct Entity so it is separated by law from its owner.

Life Span:

Death and insolvency of any of the members do not affect the continuity of the company. Thus the life of its members does not affect the company. A person can become a member or even can leave the organization. Transfer of share can not affect the company.

Easy Compliance:

Compared to Trust / Society compliance burden is less in section-8 Company.

Profit:

Like other Company section-8 company will also have revenue, profit, expenses, and losses. However, in Section-8 Company the profit can use for the furtherance of its object i.e charitable purpose only.

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Documents required for registering OPC

  • Pan Card
  • Aadhar Card
  • NOC Form
  • 2 Photos
  • Bank Statement and Light Bill
  • Driving License or Voter ID / Passport
  • Registered Office Light Bill (Latest)