Both persons who donate to the company and Sec 8 companies are eligible for a number of exemptions. Find out all the exemptions that Section 8 companies in India are eligible for.
A Section 8 microfinance company blends the noble motives of a Section 8 company with microfinance’s inclusivity. This enables them to provide financial services to marginalized groups with a non-profit aim.
Benefits of a Section 8 Microfinance Company
The benefits of establishing a Section 8 microfinance company are twofold. Firstly, it enables the provision of financial assistance to underserved communities, fostering economic growth at the grassroots level. Secondly, the non-profit nature of these entities exempts them from certain taxes, further channelling resources into their social mission.
Documents Required
Creating a Section 8 microfinance company mandates a set of essential documents. These include the –
- Memorandum and Articles of association
- Director identification numbers
- Digital signatures for key stakeholders
- Proof of address and identity documents
Process of Establishing
The process begins with acquiring Director Identification Numbers (DIN) and Digital Signature. Subsequently, the memorandum and articles of association are drafted and filed. After these foundational steps, an application is submitted online to the Ministry of Corporate Affairs. Once approved, the company gains its Section 8 status.
Section 8 Microfinance Company Registration Fees
The registration fees for a Section 8 microfinance company vary based on authorized capital. These fees encompass government charges, professional fees, and other expenses related to documentation and processing. It’s advised to consult a legal expert to accurately determine the costs.
Conclusion
In a world where financial inclusion is a pressing need, Section 8 microfinance companies emerge as catalysts for change. Their unique structure, driven by altruism and financial inclusion, paves the way for sustainable growth that reaches even the remotest corners of society.
FAQ:
Can a Section 8 Company Engage in Microfinance Activities?
Absolutely. The design of a Section 8 microfinance company harmonizes philanthropic objectives with microfinance operations, making it a potent force for positive change.
What is the Registration Cost for a Section 8 Company?
The registration cost for a Section 8 company can vary due to factors like authorized capital and legal fees. Seeking professional guidance is advisable to accurately estimate these expenses.
What is the Borrowing Limit for a Section 8 Company?
Section 8 companies can borrow funds, but there's no defined borrowing limit. However, it's essential to ensure that the borrowing activities align with the company's objectives and financial stability.
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