Section 8 Company

Section 8 Company

Section 8 company is named after section 8 of the companies act 2013. Which pertaining to be established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object provided the profits, if any.
A section 8 company is similar to a trust or society except a section 8 company is registered under the central govt.’s ministry of corporate affairs. Trusts and societies are registered under state govt. regulations.
The income of the company must be used to promote only charitable objects and can not pay any dividends to the members of the company. The central govt. provides an incorporation certificate to all such companies and also informs them some restrictions and conditions in case they don’t fulfil them. The central govt. may also order them to wind up the company. In the case fraud objectives of the company are proved legal actions will be taken against all officers of the company.

Eligibility

For registration under section 8 company the companies needs to follow the following instructions

  1. Object of the company must be charitable or to promote art, science, or commerce etc.
  2. Company intends to apply all its profit in promoting the objective.
  3. The company must assure the prohibiting of the payment of dividend to any of its members.

Documents Required

DOCUMENTS REQUIRED FOR REGISTRATION UNDER SECTION 8 COMPANY
The documents required in the formation of a section 8 company are as gives below-

  1. The identity proof of the directors:
    • PAN for Indian national
    • Notarized passport copy for foreign nationals
  2. Address proof of the directors:
  3. Passport, driving licence, Aadhar, bank statements or electricity bill. These two documents must be valid (recent and less than 2 months).
  4. Proof for registered office in India:
    • Rental agreement or sale deed, copy of electricity bill, property tax receipt
    • Objection letter from landlord for use of premises as registered office.
  5. Signed incorporation document:
  6. Signed Digital signature application document in hard copy other incorporation documents signed and uploaded as soft copy.
  7. Memorandum of Association:
  8. Article of Association
  9. Director’s details (if members are other companies/LLP)

Procedure

PROCEDURE FOR REGISTRATION OF SECTION 8 COMPANY
There are the following steps you need to follow while going for registration under section 8 company details

  1. The first step here is to complete the section 8 form.
  2. The second step here is to obtain DSC and DIN for the directors of the company (if not already obtained).
  3. The third step is verification and name approval of section 8 company
  4. The fourth step is to apply for the licence and COI (certificate of incorporation) of section 8 company
  5. Here in the fifth step your section 8 company will be ready after all the procedures.

Benefits

  1. TAX BENEFITS
  2. Section 8 company is non-profit organisation that is why are exempted from some provisions of the income tax act. They are also given numerous other deductions and other tax benefits. They avail benefits under section 80G of the income tax act 1961. They also are required to pay less stamp duty as compared to other organisations.
  3. MINIMIZED SHARE CAPITAL
  4. Unlike the other limited companies like private, public or one-person company, the companies registered under section 8 doesn’t require much share capital. They can be directly funded from subscriptions or donations made to them.
  5. USE OF TITLE
  6. Unlike the other companies who have to use title as ‘limited company’, section 8 of the IT act exempt them for the use of any suffix. They can still exercise their functions without informing the public of their limited liability status.
  7. EASE AT TRANSFER OF TITLE/OWNERSHIP
  8. Unlike the limited liability companies who are not allowed to transfer the title or ownership but as per section 8 of the income tax act 1961 allows the transfer of title or ownership of both movable and immovable interest with no hurdles or restrictions of any sort.

FAQ's

Yes, there is a need of at least 2 directors for the formation of section 8 company.

According to section 8(3) of companies act 2013 a partnership firm can be a member of a non-profit company registered under section 8. Such member of the firm shall cease upon dissolution of the firm.

The entire procedure is 100% online and you don’t have to be present at any office for incorporation, A scanned copy of documents is to be attached.

Yes, it is necessary to have a non- profit motive to incorporate section 8 company.

Submit A Query

Manish Moyal

Director

I am very pleased with the project you have done, and especially your commitment to providing a quality solution when it meant going the extra mile to do so.

Bharat Arora

Director

WE WORKED WITH THELEGALBANK TO REGISTERED OUR COMPANY Protocloud Technologies PVT. LTD. THE COMPANY IMPRESSED US WITH THEIR SERVICES.

Puspandra

Director

WE WORKED WITH THELEGALBANK TO REGISTERED OUR COMPANY PIXYRS SOFTECH & RESEARCH PRIVATE LIMITED THE COMPANY IMPRESSED US WITH THEIR SERVICES.

Contact with Us

Address

B-4/193, Chitrakoot Scheme, Vaishali Nagar, Jaipur, Rajasthan-302021

Phone

+91-141-4910100 , +91-9119112929

E-mail

info@zumosun.com