Section 8 Company
“The Companies Act describe a Section 8 company as one whose concern is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection and other similar objectives. These companies also put their profits into the fulfilment of their cause and do not give any dividends to their shareholders.”
Features :
- Charitable objectives : Section 8 companies do not aim to generate profits. Their objectives are purely charitable in nature. Their primary aim is to work for causes like science, culture, research, sports, religion, etc.
No minimum share capital : Section 8 companies, and more of all other companies, do not need a prescribed minimum paid-up share capital.
- Privileges : Since these companies possess charitable objectives, the Companies Act has accorded several benefits and exemptions to them.
Firms as members : Apart from associations and individuals, Section 8 also gives permission to firms to be members of these companies
Limited liability : Members of these companies should only have limited liability. Their liabilities can not be unlimited in any condition or case.
Government license : Such companies can operate only if they have the license of Central Governments. The Government can cancel this license as well.
Starting from INR,18,999/-
( inclusive of all taxes )*
Requirement to incorporate a Section 8 company
- There must be an al least two shareholders
- There must be a minimum of two Directors (Directors and shareholders can be the same person)
- At least one of the Directors shall be a resident in India
- There is No requirement for Minimum capital
- In case the premises are owned by either the Director or the Promoters, any of the documents establishing the ownership such as Sale Deed/House Tax receipt, etc along with the no-objection certificate.
- The Income-tax PAN is a mandatory requirement in case of the Indian nationals
- Any one of the Identity Proof be it Voter ID/Aadhar Card/Driving License/Passport is required; Passport is, however, a mandatory requirement for the proof of identity in case of the foreign nationals
- Any one of the address proofs (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement)
- The Registered Office address proof (that is the rent agreement along with the latest rent receipt and a copy of the latest utility bill in the name of the landlord and a no-objection certificate from the owner of the premises, in case the premises are rented)
- Digital Signature Certificate (DSC) for any of the two directors.
- DIN for 2 directors.
- Reservation of name over MCA portal.
- Preparation of MOA & AOA of the company.
- Application with the MCA for formation of company.
- PAN & TAN of the company
- Certificate of incorporation of the company
