We deliver Section 8 Company Registration in Patna Bihar Ranchi Jharkhand. Section 8 company is Non profit company registered under Company Act, 2013 with purpose of spending its profits on its objective only.
Section 8 Company Registration
Section 8 Company – Companies with Charitable Objects. 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 private limited nonprofit company under Section 8 Company under the Companies Act, 2013.
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 private limited nonprofit company under Section 8 Company under the Companies Act, 2013. A Section 8 Company is the same as the popular Section 25 company under the old Companies Act, 1956, which was one of the most popular forms of Non- Profit Organisations in India. But, as per 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 new Companies Act, 2013, a Section 8 company can be established for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided 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.”.
The characteristics of an NGO section 8 company are:
Object: It operates for common welfare of masses at large, for promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
Profit Earning: The objective is not to earn profit. If any profit is earned during course of its operation, the same is not to be shared among owners/members rather utilised for attaining the objects for which NGO was formed.
Utilisation of funds and earnings: The profits, if any, or other income is used towards promoting of specific objects of NGO. Further there is restriction on declaration of profits as dividend to members.
The requirements that are necessary for such company are:
- There must be Minimum of two shareholders;
- There must be Minimum of two Directors (Directors and shareholders can be the same person);
- At least one of the Director shall be the resident in India;
- There is No requirement of Minimum capital
- The Income-tax PAN is a mandatory requirement in case of the Indian nationals;
- Any one of the Identity Proof be it Voter ID/Aadhar Card/Driving License/Passport is required; Passport is, however, a mandatory requirement for the proof of identity in case of the foreign nationals;
- Any one of the Proofs of Residence (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement);
- The Registered Office address proof (that is the rent agreement along with latest rent receipt and a copy of the latest utility bill in the name of the landlord and a no objection certificate from the owner of the premises, in case the premises are rented);
- In case the premises are owned by either the Director and the Promoters, any of the documents establishing the ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.
PROCEDURE FOR REGISTRATION
- Decide Type of Company: Whether Private Company, or public company with limited by share or limited by guarantee
- Apply for Name: Once the type of company is decided, apply of name of the company. The name shall not end with private limited or limited
- After approval of name apply for license to Respective registrar of companies
- Obtain license: Registrar may ask for clarification and explanation. Once everything is clarified, registrar will issue license.
- Apply for Registration: After getting license from Registrar of Companies, apply for incorporation with central registrar
ADVANTAGES OF SECTION 8 COMPANY TRUST OR NON-PROFIT ORGANIZATION
Section 8 companies are the legal entities that are started with an object of promoting social welfare, education, charity, art, science , religion and other activities essential to benefit the society at large. These section 8 companies are synonymous to Non-profit organizations (NPO). The section 8 companies are essentially incorporated to perform the main object of welfare of the society in any of the field as mentioned above.
To begin with let us understand that main concept of the Section 8 Company. First of all as we all are aware with the types of companies such as private limited, LLP and public limited, it is pertinent to note that each of these companies have different implications and legal requirements. However, any of these companies be it Private limited or public limited each of these can be a section 8 company as well. This means any private limited company working toward the object of welfare of the society at large without an intention to derive any kind of dividend or profit can function as Section 8 Company. However, apart from these legal entities a One person company cannot function as a Section 8 Company.
So, we understand that a Section 8 company is more like a recognized legal structure and concept making it feasible for other companies structure be it Pvt. Ltd. Or Ltd. Company to function as an Non-profit organization.
- What is Section 8 Company?
A NGO or Non Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
In India, an NGO can be registered as any of the three structures being Company under Section 8 of the Companies Act, 2013(section 25, companies act 1956), Trust or Society.
Section 8 Company format of a NGO is most popular form of NGO in India. It is easy to register, run or manage a Section 8 Company in comparison of a Trust and a Society.
- Is Digital Signature mandatory for carrying out registration formalities?
Digital Signature is the only secure and authentic way that a document can be submitted electronically. All filings of e-forms on MCA Portal are required to be filed with the use of Digital Signatures by the person authorized to sign the documents.
In case, you already have a DSC, our experts will offer you some concession accordingly on the above package