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SECTION 8 COMPANY

SECTION 8 COMPANY

Free Company Name Search Name Reservation
Free Consultancy Certificate of Incorporation
2 DSC, PAN & TAN Copy of MOA & AOA
DIN of 2 Directors Share Certificates
Copy of Section 8 Company License

14,999.00

Section 8 Company

A Section 8 Company is a form of business entity associated to a Non Profit organization. Unlike other business entities, the purpose of a Section 8 company is not to generate profit. But rather, the purpose of this business entity is to promote charitable causes that involve science, culture, education, religion etc. The profits earned by a NGO Company (Section 8 Company) are directed towards these purposes, not paid as dividends among its members. As a business entity, the Section 8 Company Registration is done under the Companies Act 2013.

After Section 8 Company incorporation, its structure would feel similar to an NGO, a trust or a Society. However, unlike the Society Registration, the NGO Registration that is Section 8 Company formation is dictated by the Companies Act. Therefore, it is the MCA that is responsible for the formation of this type of company.

Why you should register a section 8 Company? There are several benefits associated in incorporating a section 8 company and they are as follows:

  1. There are several exemptions that the company Law.
  2. There is no minimum paid up capital required. Therefore, you can guess one of the benefits of section 8 company is that you can set it up even if you don’t have money.
  3. There is no requirement of a stamp duty.
  4. Under the income tax act, there are certain tax deductions given to a Section 8 company.
  5. A section 8 company has clear objectives that allow them to gather donations easily.
  6. It can be managed easily due to several privileges that it is given.

If you want to help people and work for the betterment of society, you should choose Section 8 company registration. The process of its formation is not easy. However, through Becompliantnow, it can be made easy. Our company registration experts make the prospect of Section 8 company incorporation easy for you. Contact our experts and we shall begin.

Documents Required

  1. Copy of PAN ( Permanent Account Number) of all directors / Promoters (Minimum 2, Maximum 200)
  2. Copy of Address Proof ( Voter Id, Passport, Driving License, Aadhar Card)
  3. Latest passport size Photographs of all directors / Promoters
  4. Utility Bill (Electricty Bill) of premises proposed to be the registered office. In case Premises is taken on Rent / Lease ( Rent agreement will also be required)
  5. Copy of Mobile bill, telephone bill, electricity bill or bank statement supporting the address proof of all directors/Promoters

FAQ

  • What is the INDICATIVE TIME FRAME of incorporating a Section 8 Company?
  • The entire procedure can be completed on a fast track basis within 10 working days of incorporating a Section 8 Compnay
  • Meaning of Non-profit making Company
  • A Non-profit making Company is a Company which: (a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; (b) intends to apply its profits, if any, or other income in promoting its objects; and (c) intends to prohibit the payment of any dividend to its members.
  • Can changes be done in AOA and MOA?
  • A company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government.
  • What is the penalty for violation of Section 8?
  • If a company makes any default in complying with any of the requirements laid down in section 8, the company shall, without prejudice to any other action under the provisions of this section, be punishable with fine which shall not be less than ten lakh (10,00,000) rupees but which may extend to one crore (1,00,00,000) rupees and the directors and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five (25,000) thousand rupees but which may extend to twenty-five (25,00,000) lakh rupees, or with both:
  • Is there a license for existing companies under Section 8?
  • There is also a provision for conversion of existing Companies into a Non-profit making company under section 8 read with Rule 20 of Companies (Incorporation) Rules, 2014. Likewise a Non-profit making company can also be converted into any other Company by following the procedure given in Rule 21 and 22 of Companies (Incorporation) Rules, 2014. We shall discuss these procedures in some other article.
  • How does Winding up of Company takes place?
  • As per section 8(7), where a licence is revoked under sub-section (6), the Central Government may, by order, after giving the company a reasonable opportunity of being heard, if it is satisfied that it is essential in the public interest, direct that the company be wound up under this Act or amalgamated with another company registered under this section
  • What is Revocation of Licence by Central Government?
  • As per section 8(6), the Central Government may, by order, after giving the company a reasonable opportunity of being heard, revoke the licence granted to a company registered under this section if the company contravenes any of the requirements of this section or any of the conditions subject to which a licence is issued or the affairs of the company are conducted fraudulently or in a manner violative of the objects of the company or prejudicial to public interest,and direct the company to convert its status and change its name to add the word “Limited” or the words “Private Limited”, as the case may be, to its name and thereupon the Registrar shall, without prejudice to any action that may
  • How is Memorandum of Association (MOA) and Articles of Association (AOA) prepared?
  • Drafting of the MOA and AOA is generally a step subsequent to the availability of name made by the Registrar. It should be noted that the main objects should match with the objects shown in e-Form INC.1. (Run Form)These two documents are basically the charter and internal rules and regulations of the company. Therefore, it must be drafted with utmost care and with the advice of the experts and the other object clause should be drafted in a very broader sense.The memorandum of association of the proposed company shall be in Form No.INC.13.
  • Do Promoters have to be present personally to incorporate a company?
  • Yes, promoters need to be present to personally meet us at our office or meet at any place for the registration of a Company. All the incorporation documents required to be present in original and scanned copy also required to submit
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