Section 8 company

Non Profit Organizations are incorporated under Section 8 of the Companies Act, 2013. A Non Profit Organization is incorporated with an objective of promoting arts, education, charity, protection of environment, research, social welfare, religion, etc and intends to utilize its surplus/ profits (if any) for promoting these objectives.

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"Section 8 company"

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Service Overview

In case, a Section 8 Company fails to comply with the provisions and rules prescribed under the Companies Act, 2013   Also, strict legal action will be taken against all the members of the company. However, it is to be noted that a Section 8 company is prohibited to pay  dividend to its members. To incorporate a Section 8 Company, the legal requirement is to have minimum of two directors also, there is no requirement of minimum paid-up capital.

A Non Profit Organization should  be registered under the provisions of  Section 8 of the Companies Act, 2013 and the rules made thereunder.

Cost of Digital Signature, Government Fees and Stamp Duty, if any, is payable by the client in addition to the Professional Fee being charged by indian MSME Helpline.

Brief Process

Step by step procedure to incorporate a Section 8 Company

  • Step1: Apply for Digital Signtures (DSC)
  • For name approval, fill in details in part A, to be followed by Spice+ part B form upon receipt of name approval letter.
  • The name of a Section 8 Company must end with the words like Foundation, forum, association, federation, chambers, council, electoral trust. Etc.
  • Step 2: Along with Form Spice+, also fill the Form INC-9 and Form Agile.
  • License No. shall be given to section 8 company during the incorporation.
  • Step 3: Once all forms are complete with all the attachments, prescrutinise the form and Submit. 
  • Step 4 : Digitally sign all the forms and make payment of challans thereafter.

FAQ

Yes, a Section 8 Company can be converted into any other company including OPC, subject to restrictions and compliances as per other applicable laws including Income tax Act, 1961.

A Company, whether Private Limited, LLP or Public Limited, who work towards the objective of social welfare, without any intention to get any kind of profit or dividend can function as a Section 8 company.

An individual or group of individuals can apply for Section 8 Company Registration if it holds the intentions of non profit organisations. The objectives have to be confirmed to the satisfaction of the Central Government.

No minimum capital requirement

No minimum capital requirement

There is no prescribed limit over section 8 companies for the minimum capital requirement unlike other companies.

Tax Exemption

Tax Exemption

Numerous Tax exemptions are provided to Section 8 Companies, specifically the donors who are contributing to such companies, can claim the Tax exemption against the donations they had made to a Section 8 company.

Separate Legal entity

Separate Legal entity

A Section 8 Company holds its separate identity, and has its own separate legal standing from its member

Credible

Credible

A Section 8 Company has more credibility as compared to any other Non-profit organizations (be it a Trust or Society).

No stamp duty payable

No stamp duty payable

A section 8 Company is exempted for the payment of stamp duty applicable for registration as applicable in case of other companies.

Documents Required

  • Declaration under Form INC 14 by the Chartered Accountant
  • Memorandum of Association
  • Digital Signature Certificate
  • Details of Director (When the Members Are Other Companies/LLPs)
  • Passport Size Photographs
  • Address Evidence
  • Members’ Id Proof such as Aadhar Card, Passport, Voter Id
  • Articles of Association
  • Director Identification Number
  • Estimated Income and Expenditure for the next 3 years in the Prescribed Format.
  • Declaration under form INC 15, from all the directors
Section 8 company
Price

15000

Discounted Price

₹ 10000

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