Section 8 Company registration (Non Profit Co.)
Section 8 Company registration service provided by TaxHills. We have made Startup registrations services online,simple and easy for India.
WHAT IS SECtion 8 company
In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a non-profit company under Section 8 Company of the Companies Act, 2013 . A Section 8 Company is the same as Section 25 company under the old Companies Act, 1956. Under the new Companies Act 2013, Section 25 (as per the old Act) has now become Section 8.
As per Section 8(1a, 1b, 1c) of the Companies Act, 2013, a Section 8 company can be established for the “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”. The Act further states that a Section 8 company can purse the above objects subject to the condition that it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”. In simple terms, a Section 8 company must promote a public cause and the proceeds generated by the entity must solely be used to support the stated public cause(s) only.
HOW TO register section 8 company
A company can be incorporated after obtaining section 8 license from the central government. The license is essentially permission to remove private Limited from the proposed name.
Section 8 company is suitable for non-profit objective and it may be a private limited or a public limited company. As per law in case the proposed section 8 company is a private limited then minimum two promoters is required, however in case it is a public limited section 8 company then minimum 7 person must be the promoters of the company. A ‘Section 8 Company’ is eligible for certain exemptions from provisions of law and a concessional rate of fees. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of seeking a prior license from the central government under section 8 of the companies act, 2013.
Documents of the Promoters
Latest Passport size Color photograph of all the promoters.
PAN Card of all Promoters. Foreign nationals must provide a valid passport.
Any of the following ID: Aadhar, Passport, Voter ID/Driving License of Promoters.
Latest Bank Statement/Telephone Bill/Electricity or Gas Bill/Water Bill of Promoters
Registered Office Documents
7 Digital Signature (DSC) and 3 DIN
Name Approval of the Company
MOA & AOA + Certificate of Incorporation
PAN and TDS