Section 8 Company – Companies with Charitable Objects. In India, a non-profit organization (NPO) can be registered as Trust by executing a Trust deed /Society under the Registrar/Private limited non-profit company under Section 8 Company under the Companies Act, 2013
Where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company—
(a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other Object;
(b) intends to apply its profits, if any, or other income in promoting its objects; and
(c) intends to prohibit the payment of any dividend to its members, A company registered under this section shall amalgamate only with another Company registered under this section and having similar objects.
Default- In case of non-compliance of requirements laid in sections, than penalty of 10 Lakh- 1 crore can be levied ,also imprisonment of 0-3 year may be imposed on officer or director who is in default
Perpetual Succession- Private Limited Company goes on and on until it is legally dissolved. As private limited company is having separate legal identity, so it is unaffected by the death or other exit of any member and continues to be in existence irrespective of any changes in ownership.
Compliance Benefits- A Section 8 company is not required to publish its accounts or file several documents at registrar, so it is in a better position than a public or private limited company.
LIMITED LIABILITY- The greatest benefit of Section 8 Company is limited liability. Members are only liable for unpaid shares held by them and not more than that, there is no personal liability of shareholders to the creditors of a company for company's debts.
Members- A Section 8 company can be formed by two persons only, registered partnership firm can also be a member in its own capacity
Legal Advantage- A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing as it is registered as per provision of Companies Act, 2013
ComplyPartner Team would understand business
Day 1- Application for DIN and DSC, it will take 1-2 days
Day 3- Application For Name Approval, it would take 3-5 Days
Bank Account can be opened and business can be started
Day 16- Company Registration Certificate would be issued
Day 8- Application for registration, it would take 7-9 Days
2 Passport size photos of directors
Address proof of directors
Photo ID proof of directors
No objection certificate from the owner
Rent agreement of your registered office
Utility Bills of registered Office Address