Section 8 Companies Act 2013 & Its Advantages

Section 8 companies act 2013 is a company registered as a Non-Profit Organization (NPO). All Section 8 companies must adhere to section 8 Companies Act, 2013 compliance with the Ministry of Corporate Affairs (MCA). Section 8 company is a company having the main object of promoting arts, commerce, research, science, education, sports activity, charity, social welfare, religion, environment protection, or other similar kind of objectives. These types of companies invest their profits in the operation of their main objectives. The company is not required to pay dividends to its members. The fundamental basis of Section 8 Company is for forming non-profit objects and it prohibits the payment of dividends to its members. An individual or group of individuals intending to be registered under Section 8 of the Companies Act, 2013 as a company are as follows– You can download the section 8 Companies Act 2013 pdf from the website. The procedure for registration of Section 8 Company is discussed below: 1. Applying for name availability on MCA in Form RUN 2. Applying for Digital signatures of the First directors 3. Preparation of Memorandum of Association i.e., MOA, Articles of Association i.e., AOA, and other documents. 4. Filing of SPICe 32 Form Attachments to SPICe 32 are as follows: Section 8 Companies must contain words like Foundation, Society, Association, Club, Charities, Academy, Organization, Federation, Institute, Development, and Many More. Section 8 Companies have to mandatory attach the MOA and AOA as pdf attachments to SPICe-32. You can download the section 8 Companies Act, 2013 PDF from the website. Here are the advantages of Section 8 Company are as follows: The company is a legal entity formed under company law. Section 8 Companies Act 2013 is formed under the rules and regulations given under the act. The members don’t have any kind of personal liability to pay the debts of the company. Section 8 companies don’t require any amount of minimum share capital. It is licensed by the central government under section 8 of the companies act 2013. When the company incorporation process is going on, there is less amount of stamp duty charged by the company. A Section 8 company can be incorporated without the word “Limited” or “Private Limited” at the end of its name. The name of the Companies Act, 2013 section 8 company shall include words like ‘Federation, Foundation, Association, Council’, etc. Section 8 companies in India get a tax benefit if the registration is under the mentioned section of the Act. When the Section 8 Companies Act 2013 is registered under Section 12AA (tax exemption) of the Income-tax Act, then its profits shall be entirely exempted. Section 62 of Companies Act, 2013 provides that the right issue of shares is a formal invitation to the existing shareholders of the company to buy additional new shares; such shares are issued as per the proportion to existing shareholders of the company. The pre-emptive right offer is made to the shareholders which are otherwise to be acceptable or not at all. All types of Companies can issue their shares through the right issue. The shares under the right issue can be issued by passing a Board resolution. Section 8 Companies Act 2013 is formed for not-for-profit objectives. Section 42 of Companies Act, 2013 provides that a company can make a private placement to a selected group of people. It means offering its securities or inviting to subscribe its securities to a selected group of people other than by way of the public issue through a private placement offer letter. A Section 8 company can be registered for promoting arts, commerce, research, science, education, sports, charity, social welfare, environment protection, or any similar kind of goal. A section 8 company can work anywhere in India after the successful completion of the registration process. For Formation of Section 8 Company, Connect Onlinexbrl for more query. Eligibility of Forming Section 8 Companies Act 2013
Define the Procedure of Section 8 Company Registration
What are the Advantages of Section 8 Company?
1. Distinct Identity:
2. No-Minimum Capital Requirement:
3. Stamp Duty is Less:
4. There is No Suffix:
5. Benefits in Tax:
What is the Concept of the Right Issue?
What do you Understand by Private Placement?
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