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Section 8

Section 8 Company is a non-profit organization formed to promote charitable, educational, cultural, or social objectives. Its profits are reinvested...

A Pvt.Ltd Company Offers Limited Liability and Independent Legal Status.

Section 8 Company is a non-profit organization formed to promote charitable, educational, cultural, or social objectives. Its profits are reinvested for these purposes, and no dividends are distributed to members.

A Section 8 Company in India is a type of company established with the objective of promoting charitable purposes such as commerce, art, science, education, sports, research, social welfare, religion, environmental protection, or any other objective that contributes to the well-being of society.

It operates as a non-profit organization, and any profits or income generated are applied solely towards promoting the company’s objectives, rather than being distributed among its members.

Section 8 Companies focus on social impact and community development, serving the public interest through their activities.

Charitable Work: Engaging in activities that promote social welfare, education, health, environmental protection, or relief work.
Research and Development: Conducting research to advance knowledge and provide solutions for social or scientific challenges. Education and Training: Offering educational programs, scholarships, or vocational training to empower individuals.
Healthcare: Providing healthcare services, promoting public health initiatives, or offering free or subsidized medical care.
Environment Protection: Promoting conservation of natural resources, environmental sustainability, and awareness.
Social Welfare: Engaging in social welfare initiatives, including poverty alleviation, women empowerment, and child welfare.
Sports Promotion: Supporting sports and recreational activities to encourage physical fitness and teamwork.
Art and Culture: Promoting the arts, literature, cultural exchange, and preservation of heritage
Companies Act, 2013: Provides for the registration, incorporation, management, and winding up of Section 8 Companies and outlines their functioning rules.
Ministry of Corporate Affairs (MCA): Regulates Section 8 Companies and ensures compliance with statutory requirements.
Income Tax Act, 1961: Section 8 Companies can apply for tax exemptions under Sections 12A and 80G to benefit from income tax exemptions.
Companies Act, 2013: Provides for the registration, incorporation, management, and winding up of Section 8 Companies and outlines their functioning rules.
Ministry of Corporate Affairs (MCA): Regulates Section 8 Companies and ensures compliance with statutory requirements.
Income Tax Act, 1961: Section 8 Companies can apply for tax exemptions under Sections 12A and 80G to benefit from income tax exemptions.
Directors: Minimum of 2 directors required, with one resident director.
Members: Minimum of 2 members required to start the company.
Company Name: Must be unique and comply with MCA naming guidelines. It cannot use the suffix "Private Limited" or "Limited."
Registered Office: Must have a local registered office in the country.
PAN Card, Aadhaar, and address proof for directors and members.
Passport-sized photographs of all directors and members.
Proof of registered office (e.g., electricity bill, rent agreement). Digital Signature Certificate (DSC) for directors.
Objective Statement: A clear statement outlining the charitable or social objectives of the company.
Charitable Tax Benefits: Eligible for tax exemptions under Section 12A and Section 80G, reducing tax liabilities. Social Good: Focus on charitable causes, benefiting society and community well-being. Limited Liability Protection: Member’s liability is limited to their contribution, providing protection against personal liability. Perpetual Succession: The company continues even if there are changes in management or members. Grant and Funding Opportunities: Eligible for grants, donations, and funding from government and private entities. No Dividend Distribution: Profits or income are reinvested into the company's charitable objectives
Annual General Meeting (AGM): Held within 6 months of the financial year-end. Annual Returns (Form MGT-7): Filed with the MCA within 60 days of the AGM. Auditor Appointment (Form ADT-1): An auditor must be appointed within 30 days of incorporation, with annual audits required. Board Meetings: Minimum of 2 board meetings annually. Director KYC (Form DIR-3 KYC): Annual KYC submission for all directors. Director’s Report: Prepared and submitted with financial statements in Form AOC-4. Financial Statements (Form AOC-4): Filed annually with the MCA. Income Tax Filing (ITR-7): Filed annually with the Income Tax Department. GST Filings (if applicable): Regular GST return filings (GSTR-1, GSTR-3B). Statutory Registers: Maintain mandatory registers for members, directors, and loans.

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