Section 8 Company

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Section 8 Company

Section 8 Company is a Company that is  licensed under Section 8 of the Companies Act, 2013 (the Act), erstwhile known as the  Section 25 Company under the Companies Act, 1956, which had the main object; For promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the  environment or any such other object, provided that  the profits, if any, or the other income is applied for promoting only the objects of the company and Also, No dividend is paid to its members.

Therefore, Section 8 Company is a company which is registered for charitable or not-for- profit purposes. This  Company is, however, similar to a Trust or Society; an exception is that a Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”whereas the Societies and Trusts are registered under the State Government regulations. This, however, has various advantages when it is compared to Trust or Society and it also has higher credibility amongst the donors, Government departments, and other stakeholders. Further, the key feature of this  Company is that the name of the Company can be incorporated without using the word “Limited” or “Private Limited” as the case may be.


REQUIREMENTS FOR SECTION 8 COMPANY REGISTRATION


1. Minimum of 2 Shareholder and 2 Director are required for a Pvt. Ltd. Company as a Section 8 Company, where director and shareholder can be same Or Minimum 7 shareholders & 3 directors are required for Public limited Section 8 company registration.
2. Maximum limit on number of shareholder prescribed in Section 8 Pvt. Ltd Company is 200.
3. Maximum number of Director in a private limited section 8 structure can be raised to 15 without any special resolution.
4. Name for Section 8 Company is opted without any suffix unlike a private limited or public limited company.

BENEFITS OF SECTION 8 COMPANY REGISTRATION

1. Section 8 Company Registration is comparatively more trustworthy than any other form of Non- profit organization like Trust or Society.
2. It is easy to secure donations in a Section 8 Company and pass the tax benefits to donors by providing them 80G form.
3. A Section 8 Company is easy to convert in a Public Limited company or Private limited company at any stage subject to fulfillment of eligibility criteria.
4. There exists no Bar on Turnover and Capital in a Section 8 Company structure unlike in One Person Company (OPC).

 

PROCEDURE IN ONLINE SECTION 8 COMPANY REGISTRATION


DSC OF DIRECTOR
DIN OF DIRECTOR
Filing of Name Approval Form
Approval of license from Central Government
Filing MOA/AOA Registration and various declarations etc
Wait for approval from ROC

Section 8 Company Prices
3 DSC +2DIN + RD LICENSE 24999
3 DSC +2DIN + RD LICENSE +GST registration 29999
3 DSC +2DIN + RD LICENSE +GST registration+TM 419999

 

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