Section 8 Company

Section 8 Company is also termed as the Non-Profit organization(NPO) which is established to promote art, science, commerce, religion, charity or any other advantageous object, provided the profits if any. Other revenue is utilized for supporting & promoting of objectives of the company and its members do not get any benefit.

It depends on the type of Company you are registering, in case you are registering a Private Company then only two members are required and if it is a Public Limited Company then it should have seven members.

Yes, definitely it is permissible to convert Section-8 Company into Private Limited Company and related options are available for the same.

It is a complicated process but with the help of Businessgig it is much easier. It takes only 15-25 working days to register a Section 8 Company after the documents are submitted.

For Registered Office Address

• Rent agreement along with latest rent receipt (in case the premises are rented)
• House tax receipts (in case premises are owned)
• Electricity bill
• NOC from the Owner (Format will be shared once your company name approved)

Yes, an NRI can register a Section-8 Company provided all the documents required are submitted and notarized by the professionals.

It is important to have objects with non-profit motive, and then it can be registered as Section-8 Company.

No, certainly it is not permitted to apply INC-29 for Section-8 Company. The reason is Section-8 Companies need to get license from the RD and INC-29 facilities are not suitable for this specific company.

The registration under Companies Act, 1956 is unchanging in nature and provides continuous existence. Under extreme conditions, such companies can be reimbursed. The government is the official liquidator of Corporations.

Laws that are regulating the Cooperative Societies in India are as follows;

• State Cooperative Societies Acts of individual states
• Multi-State Cooperative Societies Act, 2002 for the multi-state Cooperative societies including Area of operation in more than one State.

Yes, Corporate Social Responsibilities (CSR) is a part of all companies and similar to Section 8 Company it has non-profit related objectives.

To register Section 8 Company no paid-up capital is required. This is mentioned under sub section 6 of section 3 as per Companies Act, 1956.

There are various privileges and exclusions under the Company Law.

• There is no need of a Minimum paid-up Capital
• Stamp duty registrations are also exempted
• Companies Auditor is not applicable.
• Any registered partnership firm can be a member in its individual capacity.
• Tax deductions to the donors of the Company.

The following are the requirements

• Copy of PAN card duly signed by the applicant.
• Id Proof: Voter Id or Passport or Aadhar card or driving license. All the documents need to be signed by the applicant.
• Address Proof: It can include latest Bank account statement or Telephone bill or Electricity Bill. The documents should not be older than two months.
• Photo Proof (latest passport size picture)
• Office Address proof of the company is needed.
• NOC (No Objection Certificate from the owner.
• Copy of Sales Deed
• If the applicant is an NRI then the documents must be notarized and passport is compulsory.

The main objectives of Section 8 Company must ensure that it is related apply its profits (if any) in promoting and supporting the objectives. It should not provide any benefit/fund to its members. The objects to be promoted includes;

• Commerce
• Science
• Sports
• Research
• Education
• Social Welfare
• Religion
• Charity
• Protection of Environment.

Minimum two people are required to register a section 8 company.

Yes, there should be an office of the company having located in India. The office property can also residential, commercial or industrial where communication from the MCA will be received.

No, personal presence is not required to incorporate a section 8 company. All the documents can be scanned and sent through email. Some documents will also have to be couriered to our office.

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.

The Director needs to be over 18 years of age and must be a natural person.

Yes, a NRI or Foreign National can be a Director in a Section 8 Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident India.

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