Section 8 Company
Charitable Trusts and Section 8 Company Registration in Hyderabad
Charitable Trusts can be set up in three different forms, namely:
(a) Register a trust under the Indian Trusts Act (register the trust at the Sub-Registrar’s Office) (b) Register it as a society under the Telangana Societies Registration Act (c) Incorporate a company under the Companies Act, 2013
The registration of a company under the Companies Act, 2013 is popularly known as a ‘Section 8’ company.
Who can set up a Section 8 company?
Companies with the objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other objective can be registered as a Section 8 Company. Additionally, such companies:
- Intend to apply their profits, if any, or other income in promoting their objectives
- Intend to prohibit the payment of any dividend to their members
What registrations are required under the Income Tax Act?
Charitable Trusts, including Section 8 companies, are eligible for tax exemption under sections 11, 12, 12A, 12AA, 13, and 80G of the Income Tax Act. The expression “charitable purpose” has been defined under:
Section 2(15) of the Act to include: (a) Relief of the poor (b) Education (c) Medical relief (d) Advancement of any other object of general public utility
Can a Section 8 company merge with another company?
Yes. Section 8 companies can amalgamate only with other Section 8 companies that have similar objectives.
Our Services
We at VPS and Associates have incorporated Section 8 companies and obtained Income Tax exemptions for them in Hyderabad.
In case you need any assistance to set up a Section 8 company, please write to team@vpsandassociates.com.
