To begin with, let us understand the main concept of Section 8 Company.
First of all, as we all are aware of the types of companies such as private limited, LLP, and public limited, it is pertinent to note that each of these companies has different implications and legal regulations.
However, any of these companies be it Private limited or public limited each of these can be a section 8 company as well.
This means any private limited company working toward the object of the welfare of the society at large without an intention to derive any kind of dividend or profit can function as a Section 8 Company.
However, apart from these legal entities, a One person company cannot function as a Section 8 Company.
What do you mean by Section 8 Company Registration?
Section 25 Company (under Companies Act, 1956) is a prior version. Section 8 Companies are a legal form for Non-Profit Organizations (NPOs) or Non-Governmental organizations (NGOs). A Section 8 Company has the authority to work anywhere in the country.
These are limited companies, registered under the Companies Act, and will be treated as limited companies without the phrase “limited” added to their name. They may have been registered as private limited or public limited companies.
Basic Objective of Section 8 Company Registration
It intends to apply all its profits, income, or other earnings, in promoting commerce, art, science, education, research, sports, charity, social welfare, religion, protection of the environment, or any such other object.
It only signifies that the Company can earn income but the promoters are not to benefit from those profits. Pays no dividend or income to its members. All incomes must be applied to promoting the object.
Benefits of Section 8 Company Registration
Comprising a Non-profit Organization does not indicate that the Company cannot secure a profit or commission. It only implies that the Company can earn income, but the promoters are not to benefit from those profits.
Numerous Tax exemptions are also there for such companies. Even the donors providing towards Section 8 Company have the option to claim the Tax Exemption against these donations.
Eligibility to Apply for Section 8 Company
An individual or an association of individuals is eligible to be registered as Section 8 Company if it holds the below-mentioned intentions or objectives. The objectives have to be confirmed to the satisfaction of the Central Government.
The objectives have to be confirmed to the satisfaction of the Central Government.
When the company intends to promote science, commerce, education, art, sports, research, religion, charity, social welfare, protection of the environment or alike other objectives;
When the company holds an intention to invest all the profits (if any) or any other income generated after incorporation in the promotion of such objects only;
When the company does not intend to pay any dividend to its members.
- PAN Card or Passport (Foreign Nationals & NRIs)
- Copy of Aadhaar Card
- Passport-sized photograph
- Voter’s ID/Passport/Driver’s License
- Latest bank statement (2 months)/ telephone or mobile bill/ electricity or gas bill
- Notarized Rent Agreement in English
- No-objection certificate (NOC) from the property owner
- Sale Deed/Property Deed in English in case of owned property
For the registration there’s no need of having a physical presence for Section 8 Company Incorporation is a fully online process as all the documents and e-forms are to be filed electronically on MCA Portal.
You just need to send us scanned copies of all the required documents & forms. So, your physical presence is not required at all.
We at Vakilgiri offer quick Section 8 Company Registration Service in India with five simple steps:
- First and foremost, we will apply for your Digital Signature Certificate and Director Identification Number.
- Choosing a Unique Name for your Company.
- Compiling Forms, Documents, AOA & MOA of your Company.
- Filing e-forms with MCA.
- Allotment of COI, PAN, and TAN
After this, you can open a current bank account with the Certificate of Incorporation and begin your business operations.
We at VakilGiri also have different packages according to customer needs as gold, platinum, and diamond.
VakilGiri is a leading business consultancy firm that also helps companies in registration as Section 8 Company. The team of Vakilgiri, consisting of Business Experts, IT Developers & Digital Marketers, work as a whole, strives to provide all legal as well as IT/ Technical Consultancy under the same roof.