Section 8 Company Registration
For a Section 8 Company Registration, our team of experts will take care of every legal requirement and complete the process within the stipulated time frame from collecting the documents.
A Section 8 company under the Companies Act, 2013 or a Section 25 Company as per the Companies Act,1956 is an organization registered with an objective of promoting the arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives. These are the limited companies established under the Companies Act. The Government grants these companies an exclusive license under Section 8 Companies Act. There are three main conditions for granting the license is.
► The company should form for the charitable purpose.
► Income and profits should be used towards these objects.
► The company should not pay any dividend to its members.
Benefits of Section 8 Company:
The following are the benefits of incorporating a Section 8 company over other modes of registering an NGO:
► It has organized operations and greater flexibility.
► No requirement of a minimum paid-up capital.
► Seamless procurement of tax benefits under section 12AA and 80G of the Income Tax Act.
► Any partnership firm can be a member in its individual capacity and obtain Directorship.
Purpose of Section 8 Company:
The main purpose of establishing a company as a Section 8 company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports, research, etc. The profits/incomes of the company if any, are applied towards promoting the objectives of the company and are not distributed as dividends to its shareholders.
A minimum of two directors is required if the Section 8 company is to be incorporated as a private limited company, and a minimum of three directors in case of incorporation as a public limited company. The maximum number of members is 200 in case of a private limited company, whereas for a public limited company, there is no such limit.
Also, there is no requirement of minimum paid-up capital in case of a Section 8 company.
Documents Required for Registration:
► DSC and DIN of the Directors.
► Objectives and proposed work of the company.
► Director’s personal documents like Identity Proofs, Address Proofs and Photo.
► Registered office address documents- Rent Agreement or Sale Deed in the name of the company, utility bills not older than two months.