Section 8 Company Registration In Punjab
The main motive of registering a Section 8 Company in Punjab is to promote Non-profit objectives such as trade, commerce, arts, charity, education, religion, environmental protection, social welfare, sports, research, etc. To incorporate a Section 8 Company in Punjab, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 company.
A nonprofit organization can be registered under the Registrar of the societies or as a Non-profit company as Section 8 Company in Punjab under the Section 8 Company Act, 2013.
Who can apply for registering Section 8 Company in Punjab?
An individual or group of individuals can apply for registering a Section 8 Company in Punjab if it has the intentions that are mentioned below.
- If the Company intends to promote science, commerce, education, arts and sports, research, charity, social welfare, protection of the environment, or the other objectives.
- If the company has an intention to invest all the profits or the income that is generated after the incorporation in the promotion of such objectives only;
- When the company is not intending to pay any dividends to the members.
What are the features of registering a Section 8 Company in Punjab?
- Distinct legal entity: Section 8 Company in Punjab is a separate legal entity and is different from the members. The Company has perpetual existence. They have greater flexibility to align with the organized operations.
- Zero stamp duty: A Section 8 company registered in Punjab is exempted from the requirement of paying their stamp duty on the MOA and AOA which is applicable for the other business entities.
- No minimum capital requirement: There is no minimum capital limit that has been mentioned for the Section 8 Companies that are registered in Punjab. The Section 8 Company in Punjab can be formed without any capitaL. The fund that is necessary for carrying on operations can be brought in later in the form of donations or subscriptions from the members and the general public.
- No audit report: For the Section 8 companies that are registered in Punjab there is no need for the company to carry on the company's auditor report.
- Tax benefits: The Section 8 companies registered in Punjab have been granted various tax benefits.
- Credibility: The Section 8 Companies that are registered in Punjab are more reliable than other forms of charitable organizations. The sECTION 8 Companies are governed by the Companies Act.
- EXemption to the donorS: The individuals donating to the Section 8 Company are eligible for the tax exemptions u/s 12 A and 80 G of the income tax act.
- Membership: A registered partnership firm can become a member in the individual's capacity and become a Director.