Section-8 Company Nonprofit
The Section 8 Company is like a charitable and social welfare Trust or Society, but this section-8 company is registered under the Ministry of Corporate Affairs, Government of India. Hence, this section 8 company is also known as a non-profit company or organization. This well-drafted and generous webpage offers very informative and useful information about the section 8 company registration in entire India, to help the interested people. In the former Indian Companies Act of 1956, such types of non-profit companies were described in the section 25, and were therefore famous as the section 25 companies then. But now, in the new Indian Companies Act of 2013, these companies are formed, governed, and regulated as per the rules and provisions provided in the Section 8, and hence, the name, section 8 companies.As per the section 8 of the companies act, 2013, a company registered under this section is subject to the following features:
- The main and ultimate objectives of such a company or organization are centered at supporting and promoting diverse activities and programs designed for social development and social welfare, related with the fields of Art and Science, Education, Religion, Social Welfare, Sports, Commerce, Research, Charity, Environmental Protection, etc.
- No any dividend will be paid to its members
- And, all revenues and profits earned by a section 8 company will be utilized solely for the above-mentioned non-profit objectives.
- Exempted are stamp duty registrations
- No requirement of Companies Auditor
- Certain tax deductions to the donors to a section-8 company
- Lesser regulatory and legal formalities and compliances, as compared to those of a public limited company
- Any registered partnership firm can be a member to a section-8 company, in its individual capacity.
How to Register a Section 8 Company
This information-rich section contains exclusive information about how to register a section 8 company (npo) anywhere in entire India. A section-8 company in India may be registered as a private limited company, or as a public limited company. Usually, the time taken for the non-profit organization company registration ranges from 20-30 days, after submission of the required forms and documents to the concerned ROC.The entire procedure for registration of a section 8 company in India involves the following tasks or processes:
- Making DSCs and DINs for all the proposed Directors of the company
- Name Approval and Reservation through Form INC-1
- Drafting Appropriate MOA and AOA of the company
- Filing Form INC-12 for issuance of license under the section 8
- Submitting Form INC-8, Affidavits, Consent Letters, Power of Attorney, etc.
- Filing application for registration of the company, through Form INC-7
- Filing Form INC-22 and Form DIR-12
- Getting the Certificate of Incorporation along with a unique Company Identification Number (CIN)
- If the section 8 company is being registered as a private limited company, then, there is requirement for at least Two Directors and Two Shareholders; the directors and shareholders can be the same persons, and one of them should be resident in India. On the other hand, if a section 8 company is being registered as a public limited company, then, there should be at least Three Directors and Seven Shareholders.
- DSC, DIN, PAN Card, Identity Proof, Address Proof, Photograph, etc., of all designated Directors/Shareholders [A copy of Passport is mandatory as the proof of identity in case of foreign nationals].
- Address Proof of the Location of the Head/Registered Office of the proposed Company
- The Rental/Lease Agreement, in case of rented real estate property
- Sales Deed/House Tax Receipt/Electricity Bill/ Telephone Bill, etc., in case of owned property
- NOC from the owner of the property
Once the certificate of incorporation has been issued, the section 8 company may promptly apply for PAN, Bank Account, TAN, and other registrations related with taxation and regulation, to run and manage the company perfectly and smoothly. Our Delhi-based and internationally prominent law firm of India offers expert and expeditious legal services and guidance for all tasks related with registration, management, regulation, and expansion of all popular types of companies located in places all across India, as far as the company law services are concerned.