Section 8 Company Registration
Looking for Section 8 Company Registration in India? At Ruchita Dang & Associates we provide full support throughout the Section 8 Company Registration Process
- 2 DIN and DSC
- Drafting of MoA & AoA
- Government Stamp duty
- Company Incorporation Certificate
- Company PAN and TAN
- ZohoBooks subscription
- Certificate of commencement of busines
- Section 8 approval letter
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An Overview of Section 8 Company Registration
In India, a Section 8 Company functions as an NGO dedicated to advancing various fields such as art, science, education, sports, and charitable activities. Unlike Trusts or Societies, profits generated by Section 8 Companies are reinvested to support their stated objectives rather than being distributed to company members. The registration process for a Section 8 Company falls under the jurisdiction of the Ministry of Corporate Affairs (MCA), distinguishing it from Trusts and Societies, which are governed by State Government Registrars.
Advantages of Section 8 Company
Registration in India
Following are the advantages of Section 8 Company Registration in India:
1. Separate Legal Entity:
2. More Trustworthy & Credibility:
3. Nil Stamp Duty:
4. Minimum Share Capital:
5. No Minimum Capital is Required:
In India, Section 8 Companies do not have a minimum capital requirement and they can adjust their capital structure as per their growth and give them more flexibility.
6. Exemption to Donors:
Important Points Regarding Section 8 Company in India
Following are some vital points about Section 8 Company in India:
- NGOs in India can be registered under Registrar of Societies or as a Non-Profit entity under Section 8 Company of the Companies Act, 2013
- Compliance with Companies Act is compulsory for Section 8 Company, including Filing returns with the ROCs, maintaining books of accounts, & complying with GST and IT Act Regulations
- Section 8 Company in India cannot utilise profits for purposes other than charitable objectives & cannot distribute them among shareholders of the Company
- Any alterations to the Charter Documents like AoA & MOA require consent from the Government
- Section 8 Companies are identical to the former Section 25 Companies Under the Companies Act 1956 and now, they are recognized as such under the prevailing legislation
Eligibility Criteria for Section 8 Company
Registration in India
Following is the eligibility criteria for Section 8 Company Registration in India:
- At least 1 Director is required and he or she should be a resident of India
- HUF, an individual is eligible to commence a Section 8 Company in India
- The objective of the Company should be one or more of the following – the advancement of science & art, social welfare, promotion of sports/arts, and financial support to lower-income groups
- 2 or more individuals who will act as Directors/Shareholders should fulfill all the compliance & requirements of the Section 8 Company Registration under the Companies Act
- Directors, founders, and Members Directors of the Company cannot draw any remuneration in any form of cash or kind
- No profit should be shared or distributed among the Directors & members of the Company indirectly/directly
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FAQs on Section 8 Company Registration
A Section 8 Company is a non-profit organization formed for promoting charitable objectives such as education, art, science, sports, social welfare, religion, or environmental protection. It operates under a license granted by the Central Government.
Section 8 Companies enjoy various benefits, including tax exemptions, credibility with donors and government agencies, limited liability for members, and a separate legal identity.
Yes, profits can be generated, but they must be reinvested to achieve the company’s objectives. No dividends can be distributed to the members.