Section eight Company is called Section eight of the businesses Act, 2013, that pertains to a established ‘for promoting commerce, art, science, sports, education, research, welfare, religion, charity, protection of atmosphere or any such alternative object’, provided the profits, if any, or alternative financial gain is applied for promoting solely the objects of the corporate and no dividend is paid to its members. Therefore, Section Eight Company or Section twenty five Company may be a company registered below the businesses Act, 2013 for charitable or not-for-profit functions.
A Section Eight Company is comparable to a Trust or Society; expect, a district eight Company is registered below the Central Government’s Ministry of company Affairs. Trusts and Societies square measure registered below regime laws. a district eight company has varied benefits when put next to Trust or Society like improved recognition and higher legal standing. Section eight company conjointly has higher believability amongst donors, Government departments and alternative stakeholders.
Reasons to Register a Section 8 Company
Section eight corporation’s square measure registered below the businesses Act, 2013. Hence, the method for registration and certificate of incorporation for a district eight Company is issued by the Ministry of company Affairs, Government of India.
Section eight corporations will be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organization, Federation, Chamber of Commerce, Development and a lot of.
Trusts square measure managed by Trustees as per a official document. Section Eight Company doesn’t have the conception of Trustees. Hence, Section eight corporations square measure managed by the Board of administrators supported the flightless bird and AOA of the Section Eight Company.
Like a personal company, a district eight Company also will have revenue, expenses, profits and losses. However, during a Section Eight Company the profits will be used just for the charitable or not-for-profit functions mentioned within the flightless bird.
The management of a district eight Company will be simply transferred from one person to a different by fixing the dynamic the composition of Board of administrators. Section Eight Company can even be controlled by shareholders.
DOCUMENTS REQUIRED FOR SECTION 8
Identity and Address Proof
Identity and address proof are going to be needed for all administrators and shareholders of the corporate to be incorporated. Just in case of Indian nationals, PAN is necessary. For foreign nationals, apostilled or notarised copy of passport should be submitted compulsorily. All documents submitted should be valid. Residence proof documents like financial statement or electricity bill should be but two months recent.
Registered office Proof
All corporations should have a registered workplace in Asian nation. To prove access to the registered workplace, a recent copy of the electricity bill or land tax receipt or water bill should be submitted. along side the utility bill, rental agreement or sale deed and a letter from the owner with his/her consent to use the workplace as a registered workplace of a corporation should be submitted.
How we help with section 8 company registration
Ali tax World can register a Section 8 Company in 20 to 30 days, subject to ROC processing time.
Got questions? Request a call from an IndiaFilings Business Advisor.
Obtaining DSC & DIN
Digital Signature Certificate (DSC) and Director Identification Number (DIN) is needed for the planned administrators of the Section eight Company. DIN and DSC are often obtained for the planned administrators inside five to seven days.
Name Approval & License
Once DIN and DSC square measure offered for atleast 2 administrators, application for reservation of name for section eight company are often created to MCA. Once, the name is reserved, a license should be obtained before incorporation.
Section 8 Company Registration
Once the license is obtained, registration documents are often submitted to the MCA alongside Associate in Nursing application for registration. MCA can sometimes approve the appliance for incorporation in five to seven days, subject to their interval.
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