A Section 8 Company in India is also commonly referred to as a Non-Profit Company. This designation highlights its purpose, which is to promote fields such as art, science, commerce, research, education, charity, social welfare, religion, environmental protection, or other similar objectives.
Section 8 Company
A Section 8 Company in India is also commonly referred to as a Non-Profit Company. This designation highlights its purpose, which is to promote fields such as art, science, commerce, research, education, charity, social welfare, religion, environmental protection, or other similar objectives.
The primary characteristic of a Section 8 Company is that it operates without the intention of earning profits, and any profits or income earned are reinvested back into the company's activities to further its objectives.
Certainly! Here’s a brief summary of the eligibility criteria for a Section 8 company in India:
- Purpose: Must be set up for charitable, educational, religious, or social objectives, not for profit.
- Members: Minimum of 2 members (private company) or 7 members (public company).
- Directors: Minimum of 2 directors (private company) or 3 directors (public company).
- Non-Profit: Profits must be used for promoting the company’s objectives and not distributed to members.
- License: Must obtain a license from the Central Government.
- Name: Should include “Limited” or “Private Limited” but indicate non-profit nature.
- Purpose: Must be set up for charitable, educational, religious, or social objectives, not for profit.
- Tax Exemptions: Section 8 Companies are eligible for various tax benefits and exemptions under the Income Tax Act.
- Non-Profit Focus: The structure supports organizations focused on social, educational, or charitable activities without profit distribution.
- Credibility: Being recognized as a non-profit entity can enhance credibility and attract donations and grants.
- Legal Status: Provides a formal legal framework for operating a non-profit organization with the benefits of limited liability.
- Tax Exemptions: Section 8 Companies are eligible for various tax benefits and exemptions under the Income Tax Act.
- Name Selection: Choose a unique name for the Section 8 Company that reflects its non-profit objectives.
- Drafting Documents: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives and rules.
- Applying for DIN: Obtain Director Identification Numbers (DIN) for all directors.
- Obtaining DSC: Acquire Digital Signature Certificates (DSC) for the directors for online filing.
- Filing Application: Submit the application for registration along with the required documents to the Registrar of Companies (ROC).
- Approval: Await the ROC's approval and the issuance of the Certificate of Incorporation.
- Name Selection: Choose a unique name for the Section 8 Company that reflects its non-profit objectives.
Identity Proof of Directors
- PAN Card: Mandatory for Indian nationals.
- Passport: Mandatory for foreign nationals.
Address Proof of Directors
- Aadhaar Card
- Voter ID Card
- Driving License:
- Bank Statement: Should be recent (not older than 2 months).
- Utility Bill: Electricity bill, water bill, or gas bill. Must be recent (not older than 2 months).
Additional Documents for Foreign Nationals
- Residential Address Proof: Recent bank statement or utility bill as proof of residential address.
- Apostille/Notarization: Documents provided by foreign nationals must be apostilled or notarized in their home country.
Additional Documents
- Photographs: Recent passport-sized photographs of all directors.
- Digital Signature Certificate (DSC): Required for signing electronic documents.
- Director Identification Number (DIN): Mandatory for all directors, obtainable during the incorporation process if not already available.
- Incorporation: Helping with the formation and registration of a Section 8 Company.
- Compliance: Ensuring compliance with regulatory requirements and maintaining necessary records.
- Taxation: Advising on tax benefits and handling tax-related matters.
- Financial Management: Assisting with financial planning, auditing, and reporting.
- Legal Support: Offering legal guidance and support for various operations and activities.
- Incorporation: Helping with the formation and registration of a Section 8 Company.
Section 8 Companies are eligible for various tax exemptions and benefits under the Income Tax Act.
No, any income generated must be reinvested back into the company’s activities and cannot be distributed as profits.
The time frame can vary but typically takes a few weeks from the submission of the application to the receipt of the Certificate of Incorporation.
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SS Auditors understands the importance of client satisfaction and strives to provide high-quality auditing services. However, it is important to note the following refund policy:
Cancellation & Refund Policy
S S AUDITORS AND TAX CONSULTANTS believes in helping its customers as far as possible, and has therefore a liberal cancellation policy. Under this policy:
• Cancellations will be considered only if the request is made immediately after placing the order. However, the cancellation request may not be entertained if the orders have been communicated to the vendors/merchants and they have initiated the process of shipping them.
• S S AUDITORS AND TAX CONSULTANTS does not accept cancellation requests for perishable items like flowers, eatables etc. However, refund/replacement can be made if the customer establishes that the quality of product delivered is not good.
• In case of receipt of damaged or defective items please report the same to our Customer Service team. The request will, however, be entertained once the merchant has checked and determined the same at his own end. This should be reported within only same day days of receipt of the products. In case you feel that the product received is not as shown on the site or as per your expectations, you must bring it to the notice of our customer service within only same day days of receiving the product. The Customer Service Team after looking into your complaint will take an appropriate decision.
• In case of complaints regarding products that come with a warranty from manufacturers, please refer the issue to them. In case of any Refunds approved by the S S AUDITORS AND TAX CONSULTANTS, it’ll take 3-5 Days for the refund to be processed to the end customer.
Legal Disclaimer
The explanations and information provided on this page are general and high-level guidelines on how to write your own Shipping Policy. This article should not be relied upon as legal advice or specific recommendations, as we cannot foresee the exact shipping policies you wish to establish between your business and your customers. We recommend seeking legal advice to assist you in understanding and creating your own Shipping Policy.
Shipping Policy - The Basics
A Shipping Policy is a legally binding document that establishes the legal relations between you and your customers. It provides a framework for outlining your obligations and addressing various potential issues that may arise, and what happens in each case.
A Shipping Policy is good practice and benefits both sides—you and your customers. Customers benefit from being informed about what to expect from your service, while you benefit because clear Shipping Policies can attract more customers by eliminating uncertainties about shipping timeframes or processes.