If you want to make a difference through your organization, Section 8 company registration is a great option. This type of company focuses on social objectives, not profit. I’m Deeksha Khurana, and at Taxlegit, I help you navigate this process seamlessly.
What is a Section 8 Company?
A section 8 company registration is a nonprofit organization. It aims to promote charitable activities, education, art, science, and more. You won’t distribute profits to members. Instead, you reinvest them into the organization. This structure can enhance your credibility and attract donations.
Benefits of Section 8 Registration
- Tax Exemptions: Enjoy tax benefits under Section 80G of the Income Tax Act.
- Credibility: Gain trust from donors and stakeholders.
- Limited Liability: Protect your personal assets.
- Funding Opportunities: Access grants and funds from various sources.
Step-by-Step Guide to Section 8 Company Registration
1. Choose a Unique Name
Start by choosing a unique name for your company. Ensure it reflects your mission. Avoid names similar to existing companies. You can check name availability on the Ministry of Corporate Affairs (MCA) website.
2. Prepare the Necessary Documents
Gather essential documents, including:
- Identity Proof: PAN card, Aadhaar card, or passport.
- Address Proof: Utility bills, rental agreements, or property documents.
- MOA and AOA: Draft the Memorandum of Association and Articles of Association. These documents outline your objectives and rules.
3. Obtain a Digital Signature Certificate (DSC)
A Digital Signature Certificate is necessary for online registration. You can get it through government-approved agencies. Ensure you and your directors obtain the DSC.
4. Get a Director Identification Number (DIN)
Every director must have a Director Identification Number. You can apply for DIN online through the MCA portal. Fill out the required forms and submit your ID proof.
5. File Form INC-12
File Form INC-12 with the Registrar of Companies (ROC). This application requests a license to operate as a Section 8 company. Attach the required documents, including your MOA and AOA.
6. Await Approval
After submitting the application, wait for approval. The ROC will review your application and documents. If everything is in order, you will receive a license.
7. Register with GST and MSME
Once your Section 8 company is registered, consider GST registration if your turnover exceeds the threshold limit. This step allows you to collect and pay Goods and Services Tax. Also, think about MSME registration. It provides various benefits, including easier access to loans and government schemes.
8. Open a Bank Account
After obtaining your certificate of incorporation, open a bank account in the company’s name. Use this account for all transactions related to your organization.
Conclusion
gst registration can seem overwhelming, but it is rewarding. Following these steps helps you establish a nonprofit that can truly make a difference. If you need assistance, feel free to reach out to me at Taxlegit. Let’s work together to turn your vision into reality.