Section 8 Company
Any company established as a Non-Profit Organization (NPO) is referred as a Section 8 Company. It means the motive of the company is to promote arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives.
Book a free consultation
A company is referred to as Section 8 Company when it registered as a NGO under companies act and has motive of promoting health, arts, commerce, education, charity, sports, science, research, protection of environment, social welfare, religion and wants to use its profits (if any) or other income for promoting these objects of the NGO. The income of NGO cannot be used for personal benefit of the owners by paying out dividends to the company’s members and has to be for the promotion of objectives. Such companies get registered and get the incorporation certificate from the central government and are liable to follow to the rules specified by the government. If they fail to comply with the rules stated by the Central Government may lead to the winding up of the company on the orders of government and legal action will be taken against all the members of the company.
Separate Legal Entity: Company is a separate legal person in the eyes of law and different from its directors and shareholders. Company can operate, contract and own assets and liabilities by its own name like any individual person.
No need for paying stamp duty: A section 8 Company is not liable to pay stamp duty for registration, unlike other companies such as public limited companies or private limited companies.
Tax Exemption: The profits generated by section 8 companies are fully exempted if the NGO is utilizing the profit for its charitable or religious objects and registered under section 12AA of the Income Tax Act.
List of Documents Required
- Two Proposed Names
- The objective of the proposed company
- Latest Utility bill i.e., electricity bill, landline bill or water bill, etc.
- For rented place, NOC required in the name of the proposed company
- PAN Card of all the Subscribers/Directors
- Photograph of all the Subscribers/Directors
- Aadhar Card of the Subscribers/Directors
- Mobile No. and email id of all the subscriber/directors
- DL/Voter ID/ passport, anyone documents of all the Subscribers/Directors
- Bank statement/ Electricity Bill in the name of the Subscribers/Directors, anyone documents of all the subscribers/directors
- Share capital and voting share of directors
- Whether director or partner in any existing Co/LLP
- Place of birth, Occupation and Educational qualification of director
- Present residential address and duration of stay
- Specimen Signature of one signatory
Apply for a name approval for your company using Spice+ Part-A.
Apply for DSC of subscribers and directors
Online preparation of Spice+ PartB, eMOA, eAOA & AGILEPRO.
Online filing of Spice+ Part B, eMOA, eAOA, AGILEPRO and INC-9
Get a certificate of incorporation, PAN & TAN of your company.
- Certificate of incorporation
- Company name approval
- Director identification numbers (DIN)
- Digital signature token for directors
- Memorandum of association
- Articles of association
- Company PAN card
- Company TAN number
- ESI/PF registration