What Is A Section 8 Company In India
Section 8 Companies are basically formed for conducting Charitable activities. 1 Where it is proved to the satisfaction of the Central Government that a person or.
Has in its objects the promotion of commerce art science sports education research social welfare religion charity and protection of environment or any other such objects.
What is a section 8 company in india. Section 8 is a company that is licensed under section 8 of Companies Act 2013 formerly known as the section 25 company under Companies Act 1956 with its main object- To promote social welfare religion charity protection of the environment research education sports commerce art science or any such other object. Thus the application of its profits if any or other income. Before you read the entire blog let us quickly summarized what you will get to understand about section 8 company in India.
A non profit organisations can be registered in India as a Society under the Registrar of Societies or as a Trust by making a Trust deed or as a Section 8 Company under the Companies Act 2013. NPO Section 8 of Companies Act 2013 A Non Profit making Company is a Company which. It means generally income tax rate for section 8 company is Nil.
In India we can form. Section 8 Companies are being treated like any other company if such company does not availing exemption us 12 of income tax act. The section 8 company is a part of special business entities.
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 Registration is done online on MCA Portal. Though there are other ways to establish as NGO such as trust formation society registration but section 8 company is the most preferred one.
When it has motive of promoting arts commerce education charity protection of environment sports science research social welfare religion and intends to use its profits if any or other income for promoting its objectives. Whether a trust society or Section 8 company the Income Tax Act 1961 gives all categories equal treatment. The section 8 company is a form of company incorporated with only aim for the promotion of commerce art science education research sports charity social welfare religion protection of environment or any such other object.
Formation of companies with charitable objects etc. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of a license from the central government under section 8 of the companies act 2013. Section 8 Company is a non - profit organisation established with the aim of doing social work for the welfare of the section of the society.
Section 8 company is the most popular form of NGO registration in India. The profits of this company if there are any are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders. This article describes the various laws related to non profit organisations in India.
An association of persons proposed to be registered under this Act as a limited company. Promotion in the field of arts commerce science research education Sports charity social welfare religion environment protection and other similar objectives that leads to. The major intent contains the promotion of arts commerce charity education protection of the environment and so forth.
Section 8 Companies like NGOs Non- Government Organizations are regulated under the rules regulations of the Indian Companies Act 2013. A has in its objects the promotion of commerce art science sports education research social welfare religion charity protection of environment or any such other. Section 8 company is a corporation registered as a Non-Profit Organization NPO.
In India a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act2013. Entering into the special business entities. After launching of Spice forms for section 8 company registration Online registration is possible.
Intends to apply its profits or any other income in promoting its objects. A Company is referred to as Section 8 Company when it is registered as a Non-Profit Organization NPO ie. It is easy to register run or manage a Section 8 Company in comparison of a Trust and a Society.
Generally section 8 companies avails exemption under income tax act and its income become exempt from levy of income tax. In Companies Act 2013 a Section 8 company can be referred to as any company having the following objectives. Section 8 Company form of a NGO is most popular form of NGO in India.
Section 8 company registration procedure is as follows- Preparation of Digital Signature Certificate DSC and filing for Approval of Name. We have dedicated page to explain the detailed process of section 8 registration. Trusts formed under Indian Trusts Act 1880 However Section 8 Companies are considered best due to its systematic constitutional framework.
According to Section 8 1a 1b 1c of the Companies Act 2013 a Section 8 company can be established for promotion of commerce ar.
