Section 8 Company

Section 8 Company

Section 8 Company is ideal for NGO’s and Non-Profit Organizations.

Section 8 Company, essentially an NPO (Non-Profit Organization) is so-called because it is mentioned under Section 8 of Companies Act, 2013. The key objective of starting section 8 companies is the “promotion of arts, commerce, charity, education, protection of environment, science, social welfare, sports, research, religion” with the condition that any profit accumulated from such a venture is applied only for the promotion of objects of the company and not for distribution amongst its members. The registration of NPO (Non-Profit Organization) happens under the Ministry of Corporate Affairs (MCA) which issues it a Certificate of incorporation (CoI) after due checks. In the event that this company does not fulfill the conditions and the restrictions associated with its incorporation, it can be asked to wind up its operations by the government. In the scenario that the objectives of this company are proved to be fraudulent, then the government can initiate legal action against the company’s officers.

Panomics Legal Mentors is the best business and legal services platform in this company registration in India, offering a variety of company registration services like Private Limited Company, Public Limited Company Registration, One Person Company (OPC) registration, Limited Liability Partnership registration, Proprietorship firm registration, Nidhi Company Registration, Section 8 Company Registration, Producer Company registration, and Indian Subsidiary registration and FSSAI Registration.

Panomics Legal Mentors will help you to register a company from the comfort of your home, offering you services that are very specialized and suited for individual needs.

Get a free consultation for Section 8 Company registration with Our Top Rated Experts with simple Registration.

Advantages of Section 8 Company

  • Tax Benefits – Since this company is an NPO (Non-Profit Organization), it is provided benefits under the Income Tax Act, 1961 under section 80G
  • Stamp Duty Benefits – Companies of section 8  are exempted from payment of stamp duty in comparison to other organizations.
  • Less Share Capital – These companies have less requirement of share capital as compared to other types of companies. The funding of section 8 companies can be as a direct result of donations or subscriptions to the companies.
  • Ease of compliance – CARO (Companies Auditor’s Report Order) is not applicable to these companies.
  • Transfer of ownership or title — The ownership of a Company can be transferred without any kind of restrictions as per the provisions of section 8 of Income Tax Act, 1961.

Documents required for registration

For Shareholders/Directors:

Mandatory

  • Copy of PAN card(For Indian National)

Foreign Nationals

  • Notarized and/or apostilled passport copy for Foreign Nationals

Identity Proof:

  • Passport; or
  • Aadhar card; or
  • Voter ID; or
  • Driving license
  • Passport size photographs

 Address Proof:

  • Copy of Telephone/Mobile or Electricity bill; or
  • Bank Account Statement (Less than 2 months old)

Registered Office Address Proof:

  • Telephone/Mobile/Electricity/Gas bill (Less than 2 months old); AND
  • In case of rented premises a notarized copy of Rent Agreement with a No-Objection Certificate (NOC) for conducting business;
  • In the case of self-owned premises registered title document

Others:

  • Declaration of interest by Directors
  • A resolution passed by Promoter company if any
  • MOA and AOA of the Company

Minimum Requirement

  • A minimum of 2 directors for Private Limited Company.
  • A minimum of 3 directors for Public Limited Company.
  • A minimum of 2 shareholders for Private Limited NGO.
  • A minimum of 7 shareholders for Public Limited NGO.
  • Shareholder and director can be the same person.
  • DSC (Digital Signature Certificate) for ALL directors.
  • DIN (Director Identification Number) for ALL directors.
  • Proposed office address proof.

Registration Process

Panomics Legal Mentors will help you to register a section 8 company from the comfort of your home, offering you services that are very specialized and suited for individual needs.

Get a free consultation for Section 8 Company registration with Our Top Rated Experts with simple Registration.