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Call ExpertBelow are the main advantages of sole proprietorship registration in India:
A Section 8 company registration under the Companies Act, 2013 or a Section 25 Company as per the Companies Act,1956 is an organisation registered with an objective of promoting the fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. Section 8 companies are regulated through the Companies Act, 2013. These are the limited companies established under the Companies Act. The Government grants these companies an exclusive license under Section 8 Companies Act. There are three main conditions for granting the license.
Section 8 Company Registration
For Section 8 Company Registration procedure, the following criteria must be fulfilled:
The following documents required for Sole Proprietorship Registration:
Upon successful verification, the Certificate of Incorporation is issued by the ROC, marking the company’s legal existence.
After the registration of a sole proprietorship, the proprietor should make sure to follow the compliance requirements from time-to-time.
Here is a set of post-registration compliances for sole proprietorships in India:
No, Section 8 companies are generally exempt from paying income tax on their income derived from activities aligned with their objectives, such as social welfare, education, or research. This exemption is granted underSection 12AA of the Income Tax Act, 1961.
However, there are few exceptions:
There are no minimum requirements in terms of capital or shareholding for starting a Section 8 company. However, it must have:
Whether a Section 8 company needs GST registration depends on its annual turnover and activities. If the company’s turnover exceeds the prescribed threshold (currently 40 lakhs in most states), it needs to register for GST. Additionally, even if the turnover is below the threshold, registration might be necessary if the company:
Converting an existing company into a Section 8 Company involves the alteration of the company’s Memorandum and Articles of Association and obtaining approval from the Registrar of Companies (RoC). You will need to meet the eligibility criteria, prepare the necessary documents, and follow the prescribed procedure as per the Companies Act, 2013.
A Section 8 Company can be either a private or a public company, depending on its structure and the number of members. It follows the same classification criteria as other companies under the Companies Act, 2013.
You can check the registration status of a Section 8 Company by searching the Ministry of Corporate Affairs (MCA) portal in India. The MCA provides online access to information about registered companies, including Section 8 Companies.
There is no maximum limit for the number of members in a Section 8 Company. The company can have any number of members as required for achieving its objectives.