- Registration
Section 8 Company/ NPO Registration
Section 8 Company or a Non-Profit organisation (NPO) charitable company registered under Section 8 of the Companies Act, 2013, established for promoting commerce, art, science, religion, sports, education, research activities, charity or any other useful social object, provided the surplus of income over expenditure and donations are applied only for the purpose for which it has been created. It means that the registered S. 8 Company can earn profits but the promoters/members cannot be benefitted out of those profits, unlike other business entities.
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What is Section 8 Company/ NPO Registration?
Popularly known as Section 8 company is a company registered with charitable objects such as the promotion of Arts, commerce, science, education, sports, protection of the environment, religion, charity, etc. By promoting it as a not-for-profit organization, the Act does not bar the company from profit creation but rather prohibits distributing profit among members. This says that all the pay or benefit from any movement of the organization should be used towards the altruistic reason for which it is enlisted.
Documents required for formation of Charitable Company
Benefits of incorporation of Section 8 Company/ NPO Registration
Tax and compliance exemptions
With its registration under Section 8 of Companies Act, it obtains a special status – distinct from other entities. Not only the company enjoys tax exemptions, but also the donors can claim an exemption for the donation made (under Income Tax). Apart from tax exemption, the company is also exempted from the applicability of many compliance-related provisions.
Separate legal identity
Being registered as a company, it obtains a separate identity apart from its members. Therefore, it can own and hold the assets and liabilities in its own name irrespective of the connection with the members. The change in members or the directors neither affects its existence or the assets & liabilities or rights & obligations.
No corporate title
Although the company enjoys the benefit of the corporate entity, it is not labelled as the corporate entity. The company does not need to add the suffix “Private Limited” or “Limited” after its name. This exemption is provided so that third parties offer their attention to the company’s purpose and not its status assuming it is profit making organisation.
HERE'S HOW IT WORKS
- FAQS
Have Questions? Find Answers Here
No, physical presence is not required. Scanned copies of all the required documents & forms will hold good to complete the procedure online. Also, we at Taxkriya, always encourage faceless and paperless process in all our services. We also provide video/ audio call support at your convenience.
If the name availability and all the documents are in line with the registrar’s expectations, within 15 days we will be able to get the approval. However, for name availability, you can avail the best support from our team of experts.
Along with the name approval and incorporation form filing procedure, we also register the NGO and handle all the formalities associated with (Trust Act, Society Registrations Act or the Companies Act, depending on its entities).Our team support in clarifying all your queries and help you get the complete registration and filing process with ease.
Once the company is incorporated, it is in existence and active as long as the annual compliances are met with regularly or it is wound-up voluntarily.
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