Section 8 Company?
A company is referred a to as Section 8 Company when registered as a Non-Profit Organization (NPO) i.e. when it the has motive of promoting arts, commerce, education, charity, protectithe on of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives.
The income of NPO can not be used for paying out dividends to the company’s members and has to be for the promotion of charitable objectives. Such companies obtain an incorporation certificate from the central government and are liable to adhere to the rules specified by the government.
According to the rules, failure to comply with the responsibilities stated by the Central Government may lead to the winding up of the company on the orders of the government. Besides, strict legal action will be taken against all the members of the company if the objectives laid down by the company proves to be bogus.
our benefits
We provide comprehensive assistance for the registration of Section 8 companies in India. Our team of experts will guide you through the entire registration process, from the preparation of the necessary documents to the filing of the application with the Registrar of Companies (RoC). We will help you in drafting the Memorandum of Association (MOA) and Articles of Association (AOA) of the proposed company, obtaining the necessary approvals and licenses from the relevant authorities, and ensuring compliance with all applicable laws and regulations. We will also assist in the appointment of directors, and provide you with the necessary guidance on the compliances required post-registration. Our team is committed to providing you with efficient, cost-effective, and hassle-free services for the registration of Section 8 companies, ensuring that you can focus on your core objectives of promoting social welfare and charitable activities.
Eligibility to Apply for Section 8 Company
The eligibility requirements for applying for a Section 8 company in India are as follows:
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The company must be incorporated as a company limited by guarantee, or as a company with share capital but without issuing a prospectus.
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The proposed company must have the main objective of promoting charitable or social welfare activities, or the promotion of science, sports, education, research, or any other similar object.
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The company must intend to apply its profits, if any, or other income in promoting its objects and not distribute any dividend to its members.
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The company must ensure that its objects are not for profit, and any profits or other income earned are solely applied towards the promotion of its objects.
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The proposed company must have a minimum of two directors, and there is no maximum limit.
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The company must have a registered office in India, and the directors must have a Director Identification Number (DIN).
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The name of the proposed company must be unique and not similar to any existing company name, and the name should not be prohibited or restricted under any law.
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The proposed company must comply with the applicable provisions of the Companies Act, 2013, and its rules and regulations.
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The proposed company must obtain necessary approvals and licenses from the relevant authorities before commencing its operations.