A Section 8 Company is a nonprofit organization established under Section 8 of the Companies Act, 2013, in India. The primary objective of such a company is to promote charitable activities such as education, arts, science, research, social welfare, and environmental protection. Unlike other corporate entities, a Section 8 Company does not distribute profits among its members. Instead, all profits are reinvested to further the organization’s objectives.
Section 8 Company Registration
Setting up a Section 8 Company requires proper compliance with the legal framework set by the Ministry of Corporate Affairs (MCA). Section 8 Company registration is a decisive step for entities aiming to establish a nonprofit organization. The process includes obtaining necessary approvals and ensuring compliance with the legal and regulatory requirements.
Section 8 Company Registration Process
The Section 8 company registration process involves the following steps:
1.Obtain Digital Signature Certificate (DSC): The first step is acquiring a DSC for the proposed directors.
2.Apply for Director Identification Number (DIN): Directors must obtain a DIN from the MCA.
3.Name Approval: A unique name must be reserved through the RUN (Reserve Unique Name) service of the MCA.
4.Draft Memorandum of Association (MoA) & Articles of Association (AoA): These documents outline the objectives and governance structure of the company.
5.Filing of SPICe+ Form: This is an integrated form used for company incorporation and obtaining PAN, TAN, and GST registration.
6.Approval from MCA: Upon verification, the MCA grants a license to operate as a Section 8 Company.
7.Certificate of Incorporation: Once all approvals are obtained, the company receives a certificate of incorporation.
GST Registration for Section 8 Companies
A Section 8 Company that provides goods or services must register under the Goods and Services Tax (GST) if it meets the eligibility criteria. GST registration is required if the annual turnover exceeds the prescribed limit set by the government.
GST Registration Online
Nonprofit organizations can apply for GST registration online through the GST portal. The process includes:
1.Visiting the GST portal (www.gst.gov.in)
2.Clicking on ‘New Registration’ and selecting ‘Taxpayer’
3.Providing details such as PAN, mobile number, and email ID
4.Uploading the required GST Registration Documents
5.Receiving the Application Reference Number (ARN)
6.Verifying and approving the application by GST authorities
7.Receiving the GST Registration Status and certificate
GST Registration Documents Required
To complete GST registration, a Section 8 Company must provide:
•PAN Card of the organization
•MoA & AoA of the company
•Certificate of Incorporation
•Address proof of the principal place of business
•Bank account details
•Identity and address proof of directors
•Digital Signature Certificate (DSC)
Cancellation of GST Registration
There are instances where a Section 8 Company may need to cancel GST registration due to:
•Ceasing operations
•Turnover falling below the threshold
•Change in the business structure
•Non-compliance with GST regulations
How to Cancel GST Registration
The process for GST cancellation is as follows:
1.Log in to the GST portal.
2.Direct to ‘Services’ > ‘Registration’ > ‘Application for Cancellation of Registration.’
3.Provide the reason for cancellation.
4.Submit the final GST returns.
5.Verify the application using DSC or Electronic Verification Code (EVC).
6.The GST officer will review the application and approve the cancellation.
Conclusion
A Section 8 Company plays a vital role in social development by promoting nonprofit initiatives. Proper Section 8 company registration ensures legal recognition, allowing organizations to operate effectively. Consideration GST registration, GST registration online, GST registration status, and cancellation of GST registration is essential for compliance and smooth operations. Whether applying for GST registration online or learning how to cancel GST registration, nonprofit organizations must adhere to regulatory guidelines to maintain compliance and credibility.
