A Section 8 Company is a Company which:
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.
These are restricted organizations, enlisted under the Companies Act, and will be treated as constrained organizations without the expression "constrained" added to their name. They may have been enlisted as private restricted or open constrained organizations.
Area 25 Company (under Companies Act, 1956) is an earlier form. Segment 8 Companies are an authoritative document for Non-Profit Organizations (NPOs) or Non-Governmental associations (NGOs). A Section 8 Company has the power to work anyplace in the nation.
To apply with the ROC for Name Approval.
Application for Incorporating the Company
Declaration to Apply for PAN & TAN
Affidavit from each Director and subscriber of the MoA
This is to apply for the issuance of License to operate as a Section 8 Company.
Memorandum of Association (MoA)
Declaration from a practicing Chartered Accountant or Company Secretary
Declaration by each Subscriber of MOA (On duly notarized Non- judicial stamp paper of Rs. 100/-)
License to operate as Company under Section 8 of the Companies Act, 2013
Notice of Location of the registered office
Consent of Directors to act on behalf of the Company
Application to ROC to get DIN
Appointment of Directors of the Company
Copy of PAN Card
Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
2 Passport Sized Photographs
Ownership Proof (House Tax and so on.)
Utility Bill (Electricity Bill, Gas Bill)
NOC(from the proprietors – if the premises is leased)
Being a NPO or Non-benefit Organization doesn't imply that the Company can't make a benefit or pay. It just means that the Company can gain salary however the advertisers are not to profit by those benefits. The benefits can't be dispersed among the advertisers. All wages must be applied to advancing the article.
In any case, certain exclusions and advantages have been accommodated NGO or NPO u/s 8 of Companies Act 2013. Various Tax exceptions are likewise there for such organizations. Indeed, even the benefactors contributing towards Section 8 Company are qualified to guarantee the Tax Exemption against these gifts.
Section 8 Company has a different lawful element. Not quite the same as its individuals. Its legitimate standing is not the same as its individuals. The Company has an interminable presence. Alongside having sorted out activities and more prominent adaptability.
A Section 8 Company is absolved from the prerequisite of paying stamp obligation on the MoA and AoA of the private or open restricted organization. Which is pertinent for enrollment of different sorts of organization structures.
No base capital breaking point has been referenced for a Section 8 Company in India. What's more, the capital structure might be changed at any phase according to the development prerequisites of the organization. This suggests it very well may be framed with no offer capital. The assets important for conveying the business activities can be brought, later, as gifts and additionally memberships from individuals and the overall population.
Section 8 Company doesn't have to postfix Limited or Private Limited, close to its legitimate name. It very well may be enlisted with names that have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, and Federation.
Requirements of Companies Auditor's Report Order or CARO don't matter to this kind of organization.
For Section 8 Companies in India, many tax breaks are conceded.
Section 8 Companies are more solid than every other type of magnanimous associations. They are represented by the Companies Act and are managed carefully. For example, the necessity of an obligatory yearly review, or the MOA and AOA can't be changed at any stage or circumstance. The guidelines on dealing with the benefits and misfortunes of the organization make these organizations dependable.
Objects of Section 8 Company must be the advancement of Commerce, Art, Science, Education, Research, Sports, Social Welfare, Religion, Charity, Protection of Environment or any such other item.
The Company expects of the organization is to apply its benefits, assuming any, or other pay in advancing these items.
It plans to disallow the installment of any profit to its individuals.
Name of Section 8 Company will incorporate the words Association, Federation, Chambers, Confederation, Council, Electoral trust Foundation, Forum, and other such words. However, there is no compelling reason to include the word Limited or Private Limited to its name
The name of your Section 8 Company ought to show the chief objects of the Company as set out in its MoA. For instance, Aware Health and Research Foundation or Nagarjuna Agricultural Research and Development Institute are Section 8 Companies. Furthermore, their names show the sort of work attempted by them. This aides in marking and altruism
The proposed name ought not fall in the scope of bothersome names as determined in Rule 8 of Companies (Incorporation) Rules, 2014. The name of your LLP ought not be harsh, against the traditions and convictions of any religion, use slur and foul words or expressions which are utilized as a slur and are hostile to a specific gathering of individuals.
The name ought to be brief and not very long. Besides, it ought to be anything but difficult to articulate. An individual should review that name during important issues
You are not permitted to name your Company that is actually same or indistinguishable from a current organization or brand name or for which a brand name has been applied for. At LegalRaasta, you can check if the name you are proposing matches another person.
Each name need not demonstrate the objects of the organization, mandatorily, however when there is some sign of articles in the name, at that point it will adjust to the items referenced.
The organization ought to be shaped for the advancement of a social reason. It might be good cause, instruction, industry, sport, and so on. • Income and benefits ought to be utilized for this reason or article as it were. • No profit ought to be paid to its individuals.
FDI (Foreign Direct Investment is permitted, subject to the consistence of FEMA Regulations. Notwithstanding, the equivalent is considered as a Foreign Contribution under FCRA, it tends to be imbued uniquely with earlier consent/enlistment
No. An advertiser of NPOs can't be utilized as a paid worker of the Company.
Indeed. Area 8 Companies can put resources into different organizations. To meet the targets of its arrangement.
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