Section 8 Company Registration - An Overview
A Section 8 company under the Companies Act, 2013 or a Section 25 Company as per the Companies Act,1956 is an organization registered with an objective of promoting the fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. These are the limited companies established under the Companies Act. The Government grants these companies an exclusive license under Section 8 Companies Act. There are three main conditions for granting the license is.
- The company should form for the charitable purpose.
- Income and profits should be used towards these objects.
- The company should not pay any dividend to its members.
Requirements for online registration of Section 8 Company
For registering a Section 8 company, the following criteria must be fulfilled:
- Governed by:Companies Act, 2013.
- Members:Minimum of 2 Directors/Shareholders.
- Important Documents:MoA, AoA and financial statements.
- Board:Directors.
- Property management:All the properties belonging to a company are vested in the name of the company. These can be sold in conformity to the provisions mentioned in the Companies Act, 2013. The Act says the sale can be done with prior consent of the Company Board of Directors, when they pass a resolution regarding the same.
- Closure or winding up:The property and funds of the society, upon its dissolution ( as per the society by-laws) and settlement of all liabilities & debts, may not be equally distributed among the company members. Rather, the same can be transferred or given to some other company, preferably with similar objects.
- Annual compliance:The company must ensure its annual compliance by filing its annual returns and annual accounts with the RoC.
Documents Required
- DSC and DIN of the Directors.
- Objectives and proposed work of the company.
- Financial statements like assets and liabilities, the projection for five years etc.
- Directors personal documents.
- Registered office address documents viz. rental agreement or sale deed in the name of the company, utility bills not older than two months.
Why register Section 8 Company - Benefits
The following are the advantages of incorporating a Section 8 company over other modes of registering an NGO:
- It has organised operations and greater flexibility.
- Avoids meticulous registration process and no physical presence required.
- No requirement of a minimum paid-up capital.
- Seamless procurement of tax benefits under section 12AA and 80G of the Income Tax Act.
- Any partnership firm can be a member in its individual capacity and obtain Directorship.
Why bigvakil
20 Working Days
Just tell us a little bit about your business and you'll have the registered trust deed in 20 working days (subject to government approval). It's that simple. In addition to yours, we'll be handling around 400 requests this month.
9.1 Customer Score
We make your interaction with the government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
160 Strong Team
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.
