All about Section 8 Company
According to the legal language section 8 company is
- Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object.
- It intends to apply all its profits, income, or other earnings, in promoting these objects.
- Pays no dividend or income to its members.
Section 8 company is registered under companies act and will be treated as limited companies without the phrase “limited” being added to their name. Section 8 Companies are a legal form of “Non-Profit Organizations (NPOs) or Non-Governmental organizations (NGOs)”. In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.
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Corporate Genie Plans
Rs. 7949
- Registeration of Section 8 Company at Ministry of Corporate Affairs
- Advice, Drafting & Filing by Experts
- MCA processing and COI
- RD license
- Company PAN & TAN
- MOA
- AOA
- Allotment of Two DIN
- Estimated Income & Expenditure Account for the Next Three Years (Mandatory for Sec-8 Company Registration)
Rs. 18949
- Registeration of Section 8 Company at Ministry of Corporate Affairs
- Advice, Drafting & Filing by Experts
- MCA processing and COI
- RD license
- Company PAN & TAN
- MOA
- AOA
- Allotment of Two DIN
- Estimated Income & Expenditure Account for the Next Three Years (Mandatory for Sec-8 Company Registration)
- Preparation of Financial Statements
- MCA Annual Return Filing and DIR-3 Director KYC
Rs. 24949
- Registeration of Section 8 Company at Ministry of Corporate Affairs
- Advice, Drafting & Filing by Experts
- MCA processing and COI
- RD license
- Company PAN & TAN
- MOA
- AOA
- Allotment of Two DIN
- Estimated Income & Expenditure Account for the Next Three Years (Mandatory for Sec-8 Company Registration)
- Preparation of Financial Statements
- Income Tax Return Filing
- MCA Annual Return Filing and DIR-3 Director KYC
Corporate Genie
Documents required for Section 8 Company
Process to obtain registration
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Advantage of Section 8 company
The liability in section 8 company is limited.
Section 8 company is entitled to various tax exemptions by government of India.
Separate legal existence.
No minimum capital is been required.
FAQ
There are certain obligation which need to be fulfilled i.e.
The main objective should be for charitable purpose.
Minimum 2 members should subscribe to capital on incorporations.
There should be minimum 2 directors in the company, one of which must be Indian citizen and resident.
The main objective should be for charitable purpose.
Minimum 2 members should subscribe to capital on incorporations.
There should be minimum 2 directors in the company, one of which must be Indian citizen and resident.
The Section 8 company is popularly known as NGO. It is to be noted that NGOs can be registered as other business structure like trust, society, etc.
The promoters shall apply in e-form INC-12 for the approval of Central Government. The form is accompanied with MoA – AoA of the company, declarations from promoters, estimated statement of income & expenditure for next three years, etc.
Yes a section 8 company can take loan from its members and pay interest thereupon, subject to the provisions of Chapter V of the Act read with rules made thereunder.
Comparison
| Private Limited Company | One Person Company | Limited Liability Partnership | Partnership Firm | Proprietorship Firm | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Act | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Indian Partnership Act,1932 | No specified Act | Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
| Registration Requirement | Mandatory | Mandatory | Mandatory | Optional | No | ||||||
| Number of members | 2 – 200 | Only 1 | 2 – Unlimited | 2 – 50 | Only 1 | ||||||
| Number of Director/Partner | 2 – 15 | Only 1 | 2 – Unlimited | 2 – Unlimited | Only 1 | ||||||
| Separate Legal Entity | Yes | Yes | Yes | No | No | ||||||
| Act | Companies Act, 2013 | Companies Act, 2013 | Limited Liability Partnership Act, 2008 | Indian Partnership Act,1932 | No specified Act | Liability Protection | Limited | Limited | Limited | Unlimited | Unlimited |
| Statutory Audit | Mandatory | Mandatory | Dependent | Not mandatory | Not mandatory | ||||||
| Ownership Transfer ability | Yes | No | Yes | No | No | ||||||
| Uninterrupted Existence | Act | Act | Act | Act | Act | ||||||
| Foreign Participation | Allowed | Not Allowed | Allowed | Not Allowed | Not Allowed | ||||||
| Tax Rates | Moderate | Moderate | High | High | Low | ||||||
| Statutory Compliance | High | Moderate | Moderate | Less | Less |