Sec 8 companies are operating only for the purpose of Non-profit purpose. It accumulates the Philanthropic purposes. The overall promotions for the social cause and developing of society. Registered Sec 8 companies can obtain funds, loans and donations from the general public.
According to the Income Tax, the sec 8 companies registering under the 12A clause will get the total exemptions. Suppose, the company exceeds the limit of Rs.1 Crore, then the government will fully or substantially manage the company in the financial manner.
Proposed director & Shareholder - Indian Citizen:
- PAN Card
- Aadhar Card.
- Proof for Address – Bank Statement or Telephone Bill or EB or Mobile Bill (Latest)
- Passport Size Photo.
Proposed director & Shareholder - Foreign National:
- A Copy of Passport ( Notary and Apostille is required )
- A copy of address proof ( Notary and Apostille is required )
- A copy of nationality proof ( Notary and Apostille is required )
- Two passport size photo
Register Office documents:
- If the Office is rental, rental agreement is inevitable
- Electricity bill (Not more than two months old required to be submitted)
- Occupant needs to provide a No Objection Certificate from landlord to operate the business (NOC) if not rented.
- Tax exemption benefit is the primary advantage coming with this Sec 8 Company. According to Income Tax Act, they avail benefit under the section 80G. Minimised share capital is enough to start a Sec 8 company. There is no prescribed limitation is following for the sec 8 company registration.
- Comparing with other company registration non-payable stamp duty is following in the sec 8 company registration. Like limited company, Title of the company is not a complex one. It needs not any suffix names. Perpetual existence from a legal entity is the status of Sec 8 company registration. Sec 8 companies can accomplish more credibility.