Section 8 Company Registration in India
Section 8 company means a company registered for Social causes such as the promotion of arts, commerce, science, education, sports, protection of the environment, religion, charity, etc.
By promoting it as a not-for-profit organization, the Act does not bar the company from profit creation but rather prohibits distributing profit among members. This says that all the income or profit from any activity of the company must be utilized towards the charitable purpose for which it is registered.
The company is registered under Section 8 of the Companies Act, 2013, which provides it special status due to its objects. Compared to other types of companies, Section 8 company enjoys various exemptions and relaxations.
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Documents Required for Company Registration
Latest Passport size Color photograph of all the promoters (Shareholders and Directors)
Any of the following ID: Passport, Voter ID/Driving License of Shareholders and Directors.
Registered office Proof
Latest & Clear Telephone Bill/Electricity Bill/ /Water/Gas Bill of the registered office address
PAN Card of all shareholders and Directors. Foreign nationals must provide a valid passport.
Latest Bank Statement/Telephone Bill/Electricity or Gas Bill/Water Bill of Shareholders and Directors
NOC from owner
No Objection Certificate from owner(s) of the premises of registered office.
How to choose a name?
Mainly it builds the company brand and preferably be a coined word
Second part of name should suggest the business activity of the company
Its name must include suffix like Foundation, Forum, Federation, Chambers, Association, Council, etc.
The name does not require to add any suffix like “Private Limited” or “Limited”
Six Stages of Company Registration in India
Firms As Members
Apart from individuals and associations of persons, Section 8 also allows firms to be members of these companies.
Such companies can function only if they have the Central Government’s license. The Government can revoke this license as well
No Minimum Share Capital
Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital.
Since these companies possess charitable objectives, the Companies Act has accorded several benefits and exemptions to them.
Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case
Section 8 companies do not aim to make profits. Their objectives are purely charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc
Process & Timeline for Company Registration
Frequently Asked Questions
A company (NGO) which has main objective is to do social welfare by promoting commerce, education, research, art, science, sports, religion, charity, etc. If any profit generates from working of company then it would be applied for promoting the said object.
There is no restriction in payment of remuneration to employees / directors of section 8 companies.
Once the company is incorporated, it is in existence and active as long as the annual compliances are met with regularly or it is wound-up voluntarily.
A person or an association of persons can make an application under section 8 of companies act to the Registrar of Companies using requisite forms to register a company with charitable objectives
While the definition of “taxable person under GST” includes a trust, society, or section 8 company. These entities are not engaged in any economic activity just like trading and commerce so they cannot be treated as a taxable person under GST.
A Section 8 or Charitable Company shall not pay any dividend to its members, but apply the surplus of receipts over payments for the promotion of its objectives.
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