Section 8 company registration in Kolkata
Starting @ ₹12999/-

  • DSC for 2 Director
  • DIN for 2 Director
  • Articles of Association (AOA)
  • Memorandum of Association
  • Company PAN
  • Company TAN
  • Certificate of Incorporation
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Section 8 company registration in Kolkata

We often named NGOs/Trusts/Society in the same bracket to describe the non-profit objective and purpose of these form of institutions and organisations. 

A company registered under section 8 of the companies Act 2013 deals with these form of organisations.

Company registered for promoting Commerce, art, Science, sports, education, and research, social welfare, religion, charity, protection of environment or any such other object with an aim to use profits and other income is applied for promoting only these objects of the Company.

This non-profit body is like a NGO, and in some respect they are similar to a Trust or Society. But the only difference is NGO type objective based companies are incorporated under the companies act whereas a Trust or Society is registered under the regulations of the respective State Government where it is located.

Section 8 of the companies Act (2013) deals with the Section 8 company registration and the definition, characters and features of NGOs,Trusts, and Societies which are commonly known as section 8 companies.

Features of a section 8 company

  • Section 8 Company registration is done for promoting Commerce, art, science sports, education, research, social welfare, religion, charity, Protection of environment or any such other project.
  • The profits, earnings and other income are applied and spend in promoting any of these objectives of the firm.
  • Make payment of dividends to its members is prohibited for section 8 companies.
  • For section 8 company registration use of words like “Limited” and “Private Limited” are not necessary at all.
  • Another important feature of section 8 company registration is that, there is no requirement of any minimum paid up capital.
  • These types of companies are exempted from stamp duty registration.
  • There are many types of privileges and exemptions are available to a section 8 company. Section 8 companies have been granted total/partial exemptions under various sections of the companies Act 2013.
  • A one person company cannot function as a section 8 company, so section 8 company registration is not possible for an OPC.
  • Section 8 company has its independent corporate legal entity, similar to private limited company or a Limited Liability Partnership and for this reason it has greater credibility and trustworthiness in public domain.

Exemptions & Relaxations available to section 8 company

  • No need for minimum share capital.
  • Shorter Notice Period for Annual General Meetings (AGMs). Only 14 days notice shall be required to convene an AGM of a section 8 company.
  • For a section 8 company, it is not required and necessary to record minutes, descriptions of meetings, unless required.
  • Section 8 companies are allowed to despatch the financial statements and other documents not less than 14 days before the date of meeting.
  • Only two directors are required for these types of companies.
  • Presence of Independent directors is not required.
  • It is not required to hold the first meeting of the board within 30 days of section 8 company registration.
  • Directorship in more than 20 companies is possible in these types of companies. The Bar on directorship in more than 20 companies has been relaxed for section 8 company registration.
  • These types of companies can take certain decisions by circulation instead of at a meeting.

They enjoy relaxation in formation of certain committees

TRUST:

A Trust is a relationship in which a person or entity holds a valid legal title to a certain property which is known as trust property. The trust is bound by a special legal obligation where one party is obligated to act in the best interest of another, to exercise that title for the benefit of any one or more individuals or group of individuals or organisations, who will be then known as the beneficiaries. The trust shall be governed by the terms of the written Trust shall be governed by written agreement.

Trust is defined, regulated and governed by the Indian Trust Act 1882. Generally, there are two types of trusts in India: private trusts and public trusts. Private trusts are regulated by the Indian Trusts Act 1882, Whereas Public trusts are classified as charitable and religious trusts. The charitable and religious act 1920, The religious endowment act 1863, the charitable Endowment Act 1890, the Societies Registration Act 1860 etc.

There are different forms of trusts in India:

  • Educational Trusts.
  • Charitable Trusts.
  • Religious Trusts.
  • Public Trusts.
  • Private Trusts.

REGISTRATION PROCESS OF CHARITABLE/RELIGIOUS/EDUCATIONAL TRUST:

  • Select a suitable Trust name.
  • Select and determine a registered office.
  • Determine the name of the trustees, beneficiaries and Author of the intended trust.
  • Prepare Memorandum of Association and rules and regulation of the trust.
  • Select and prepare the by-laws of the trust.
  • Prepare all the documents required at the time of the submission:
  • Preparation of Trust Deed
  • And Documents of trustees, Author and beneficiary.

So in a nutshell for a trust company formation/charitable trust formation/Formation of trust for temple following factors are absolutely vital and most essential for the formation of trust of any such category mentioned above.

  1. Name of the Trust
  2. Address of the trust
  3. Objects of the trust (Charitable or Religious).
  4. One author/settler of the trust
  5. Two trustee of the trust.
  6. Property of the trust (movable/immovable).

ADVANTAGES OF TRUST(EXEMTIONS):

  • As per section 11, any income, profits or gains obtained by a trust from a property held by a trust from a property held by the trust established wholly for the purposes of charitable trust formation or formation of trust for temple, shall not be included in the total income of the trust. So the income of such types of trusts is not taxable.
  • It has more credibility in the eyes of public, as it works for the benefit of public and community selflessly.
  • So many social, cultural and educational objectives can be attained through the formation of trusts. Selfless, voluntary act of participation encourages everyone to join in a good cause and mission.
  • To bring the social change among the backward community and economically backward class, charitable trust formation plays a very important role to upgrade and uplift the sections of the community who are left behind.

WHO CAN CREATE A TRUST:

  • According to section 7 of the Indian Trusts Act, 1882, a trust may be created by the following persons:

    • Company
    • Woman
    • Association of Persons(AOP)
    • HUF
    • By or on behalf of minor with the permission of a principal civil court
  • It has more credibility in the eyes of public, as it works for the benefit of public and community selflessly.
  • So many social, cultural and educational objectives can be attained through the formation of trusts. Selfless, voluntary act of participation encourages everyone to join in a good cause and mission.
  • To bring the social change among the backward community and economically backward class, charitable trust formation plays a very important role to upgrade and uplift the sections of the community who are left behind.

SOCIETY

A society is an association of persons united by mutual consent to deliberate, determine and act and act jointly for some common purpose. Formation of a society and the society registration is usually done with the promotional purpose of charitable activities like education, art, religion, culture, sports etc.

According to section 20 of the societies Act, 18860, societies Registration Act, 1860, societies can be formed for the following purposes:

  1. Charitable Societies.
  2. The military orphan funds or societies.
  3. Societies established for the promotion of science, technology, and literature.
  4. Political Education.
  5. The foundation and maintenance or libraries or reading-rooms for general use.
  6. Public Museums and galleries of paintings and other works of art, collections of natural history and works of art and inventions and designs.

ADVANTAGES OF SOCIETY

  • The process of process of formation is simple
  • Minimum compliance for the society formation because of easy regulations.
  • Tax exemption for charitable operations.
  • Regular interference is minimum.

FORMATION OF SOCIETY

Under Section 1 of the societies registration Act, 1860, any seven or more persons who have come together for any legal pursuits, including literary, scientific, charitable or social pursuits may subscribe their names to MOA and file with the registrar.

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