Overview of Section 8 Company Registration in Varanasi
A Section 8 corporation is an entity registered as a Not-for-profit Corporation. Promoting the arts, commerce, science, research, education, sports, charity, social welfare, environment preservation, and various related endeavours is the aim of these enterprises.
Previously, Section 25 of the Corporations Act of 1956 defined Section 8 corporations with very similar characteristics. Additional goals for Section 8 corporations were specified under the New Corporations Act of 2013.
These businesses don't pay dividends to their shareholders; instead, they spend all of their revenue and profits to achieve their goals.
Advantages of Incorporating a Section 8 Company in Varanasi
• Members of section 8 firms in Varanasi have limited responsibility, and their private assets won't be utilised to settle business obligations.
• To form a Section 8 corporation in Varanasi, there is no minimum capital needed.
• Because the Central government licenses Section 8 businesses, they are more credible in Varanasi than NGOs, trusts, and societies.
• Compared to other Varanasi organisations, Section 8 firms exhibit extremely low levels of compliance.
• It exists indefinitely and has a different legal standing from its members.
• Stamp duties and other expensive costs are not required to be paid at the time of registration.
• Firms registered under Section 8 do not use the suffix "Limited" or "Private Limited."
• These types of businesses are generally free from numerous taxes.
80G Certificates in Varanasi
Donations given to a Section 8 Company or a charity organisation in Varanasi can be entirely or partially tax-deductible by the person, thanks to the 80G Certificate. There is a maximum deduction allowed criterion; if a person donates more than 10% of their gross income, they will not be eligible for tax advantages.
An individual in Varanasi is eligible to receive a tax exemption under the 80G if they donate according to specific guidelines.
Only donations given to registered charity trusts and organisations are eligible for the u/s 80G deduction.
How to Obtain an 80G Certificate in Varanasi?
The income tax commissioner in Varanasi handles the section 80G registration process after obtaining the application and any supporting documentation from the applicant in Form 10G. The following papers should be included in the application:
Registration Certificate; Memorandum of Agreement/Trust Deed.
A NOC from the registered office owner.
A copy of a dwelling, water, or energy bill. The Trust or Organisation's PAN Card, Evidence of the welfare initiatives undertaken, Progress Report over the past three years or since the NGO's founding.
The balance sheet and statement of accounts for the preceding three years.
There must be a list of contributors that will include their PAN numbers and address information.
A list of the trustees' rulings and governing bodies, together with their contact information.
A copy of the notification issued under section 10(23) or section 10(23C), or a copy of the registration granted under section 12A.
12A Registration in Varanasi
Section 8 businesses, trusts, and non-governmental organisations in Varanasi that register with 12A are eligible to receive an exemption from paying income tax on their excess revenue or profit. NGOs are groups that engage in non-profit and charity endeavours. However, they would have to pay taxes at regular rates if they gain income or profit if they are not registered under section 12A of the Income Tax Act.
Benefits of 12A Registration in Varanasi
• The primary advantage of 12A registration in Varanasi is the exemption from income taxes on income use.
• Organisations in Varanasi that are registered under Section 12A are qualified to receive funds from the public and private sectors.
• In Varanasi, entities that are registered under 12A are also qualified to get Section 80G advantages.
Eligibility Criteria for Incorporating Section 8 Companies in Varanasi
In Varanasi, an Incorporating Section 8 Company must meet the requirements listed below:
1. A charity's purpose should be the main goal. It shouldn't aim to increase shareholder profits.
2. If the business wants to advance trade, science, education, the arts, sports, research, charitable giving, social welfare, environmental preservation, or other related goals.
3. If the business plans to utilise all of its earnings to support its charity goals.
Document Requirements for Registering a Section 8 Company in Varanasi
Director Identification Number (DIN), Digital Signature Certificate, Directors' passport-size photo, Member identification (passport, voter ID, Aadhar card, or Pan card), The director's details; proof of directors' addresses (bank statement, cell phone bill, electricity bill, telephone bill); and proof of the registered business location (rent agreement, utility bill, and proof of ownership), Memorandum of Association (MOA), Articles of Association (AOA), Owner's NOC (if the office is rented)
Process of Company Registration in Varanasi
Step 1: Every director of the company in Varanasi must apply for a Digital Signature Certificate (DSC), as it is the most essential thing.
Step 2: The candidate should apply for the Director Identification Number in Varanasi after obtaining the DSC.
Step 3: The members must then apply to the Ministry of Corporate Affairs to reserve the proposed company's name in SPICe+ form Part A. The names used must be original and must not violate any of the act's rules. You can submit two proposed names on this form; if the first one is rejected, you have 15 days from the date of rejection in Varanasi to submit two new names.
Step 4: The chosen name in Varanasi will only be effective for 20 days once it is authorised. As a result, the applicant has 20 days to submit the necessary application form for business incorporation. The SPICe+ Form must be used to apply.
The following papers must be sent in SPICe+ form as attachments only which are :
• A copy of the MOA that has been properly signed by each member and witness;
• A copy of the AOA that has been properly signed by each member and witness;
Step 5: If there were no objections and the firm could be started in Varanasi, the Registrar of Companies would then give the Incorporation Certificate.
Step 6: In Varanasi, members can create a bank account on the company's behalf for any transactions after completing the incorporation procedure.
Conclusion
In conclusion, like any other place in India, Varanasi offers non-profit groups pursuing social welfare, philanthropic, or other non-profit goals a structured and legally recognised framework through the registration of a Section 8 company. Benefits of this registration include members' restricted responsibility, permanent existence, and possible tax exemptions. Better governance and transparency are also made possible by a professional board of directors. Section 8 businesses can function efficiently and support social development while staying in line with the law by adhering to the rules and regulations.
eStartIndia will help you with Section 8 Company Registration from the comfort of your home.
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