A Section 8 Company Registration in Kolkata, as per the Companies Act, 2013, is a type of nonprofit organization that can be established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, environment protection, or any other similar object. Here’s an overview of a Section 8 Company and the process of its formation:
- Objectives:
- A Section 8 Company must have the primary objective of promoting charitable activities or social welfare causes, and it should apply its profits, if any, towards the promotion of its objectives. Any income generated by the company must be used solely for furthering its objectives and cannot be distributed to its members as dividends.
- Key Features:
- Limited Liability: Members of a Section 8 Company enjoy limited liability, meaning their personal assets are protected in case of any liabilities incurred by the company.
- No Minimum Capital Requirement: Unlike other types of companies, a Section 8 Company can be registered without any minimum capital requirement.
- Tax Exemptions: Section 8 Companies are eligible for various tax exemptions under the Income Tax Act, including exemptions on income derived from charitable activities and donations received.
- Separate Legal Entity: A Section 8 Company is treated as a separate legal entity distinct from its members, which means it can own property, enter into contracts, and sue or be sued in its own name.
- Formation Process:
- Name Approval: The first step in forming a Section 8 Company is to obtain approval for the proposed name from the Ministry of Corporate Affairs (MCA). The name should reflect the objectives of the company and should not be similar to the names of existing companies or trademarks.
- Memorandum and Articles of Association: After getting name approval, the memorandum and articles of association of the company need to be drafted. These documents will be the objectives, rules, and regulations governing the company’s operations.
- Application for License: After drafting the memorandum and articles of association, an application for a license under Section 8 of the Companies Act, 2013, needs to be filed with the Registrar of Companies (ROC) along with the necessary documents, including the proposed memorandum and articles of association, declaration by promoters, and proof of registered office.
- License Issuance: If the ROC is satisfied with the application and documents submitted, it may issue a license allowing the company to be registered as a Section 8 Company.
- Incorporation: Once the license is obtained, the company can be incorporated by filing the incorporation documents, including the memorandum and articles of association, with the ROC.
- Certificate of Incorporation: Upon successful registration, the ROC issues a Certificate of Incorporation, confirming the formation of the Section 8 Company.
- Compliance Requirements:
- Section 8 Companies are required to comply with various statutory requirements, including holding regular board meetings, maintaining proper accounts and records, filing annual returns, and adhering to other regulatory obligations prescribed under the Companies Act, 2013.
Overall, a Section 8 Company provides a structured and legally compliant framework for organizations aiming to pursue charitable or social welfare objectives while enjoying the benefits of limited liability and tax exemptions.
Consult with us at 9832117700 or 9749373200