Section 8 Company
Formation
NGO Formation is a type of Section 8 Company is simple, online, and fast. We provide Director Identification Number, DSC, Name Approval of Company, MOA & AOA, and Section 8 Company Incorporation Certificate in all our packages with PAN and TAN Numbers, etc.
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Documents required
- PAN Card or Passport (Foreign Nationals & NRIs)
- Copy of Aadhaar Card/ Voter’s ID/ Passport/ Driving License
- Passport-sized Photograh
- Mobile Number and Email Ids of all parties.
- Latest bank statement (2 months)/ telephone or mobile bill/ electricity or gas bill
- Electricity Bill for Registered Office.
Section 8 Company
Section 8 Company formation is a lawful process of incorporating a company under Section 8 of the Companies Act, 2013. Section 8 of the Companies Act mentions provisions to recommend a company as a non-profit organisation with specific objectives.
A Section 8 Company is a type of nonprofit organization in India. This type of company is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other charitable purpose. The income and property of a Section 8 Company are applied solely for promoting its objectives, and no dividends are paid to its members.
Section 8 Companies play a crucial role in the development and promotion of social causes in India. They are instrumental in undertaking activities that contribute to the betterment of society, such as education, healthcare, poverty alleviation, and environmental conservation.
Section 8 Company Formation Process
Decide Section 8 Company Objectives
Section 8 Companies are non-profit entities incorporated under Section 8 of the Companies Act,2013. Section 8 restricts the objectives of these companies to promoting arts, commerce, education, sports, science, and other prescribed objects. So, the first step is to decide the company’s object for incorporation.
Section 8 Company Name Approval
The first step is to apply the ROC’s proposed name of the section 8 company by ROC. You will apply the proposed name online on the MCA website. The Section 8 company name is to be checked by a professional its 100% accuracy.
Apply for Section 8 Company
After all the Section 8 Company formation conditions are met, you can proceed with the application process on the MCA website. You must fill out the information correctly and upload the necessary documents in the SPICE Part B.
Issue of Certificate of Incorporation
After the application is submitted Successfully, it gets thoroughly examined by the ROC. It issues a Certificate of Registration in the Company’s name as a conclusive proof of registration. After that ROC approved the section 8 Company.
Section 8 Company Benefits
Legal Recognition
Section 8 Companies are recognized as legal Company under the Companies Act, 2013. This provides them with a formal legal structure, allowing them to enter into contracts, own property, and sue or be sued in their own name.
Limited Liability
Members of a Section 8 Company enjoy limited liability, meaning their personal assets are generally protected, and their liability is limited to the amount unpaid on their shares.
Tax Benefits
Section 8 Companies can tax benefits, including exemptions from 12A Certificate under income tax. Additionally, donors to Section 8 Companies may be eligible for tax deductions under Section 80G of the Income Tax Act.
Non-profit Nature
The primary goal of Section 8 Companies is used profit only to promote the object clause by MOA. This allows them to focus on social welfare, cultural and educational activities, and other charitable purposes without the primary goal of making a profit.
Credibility and Trust
Being registered as a Section 8 Company adds credibility and trust to the organization. It’s commitment to social welfare and adherence to legal rules and regulations can enhance the organization’s reputation.
Promotion of Social Causes
The main objective of Section 8 Companies is to promote social, educational, cultural, and charitable objectives. So this type of company focuses on making a positive impact on society.
Frequently Asked Questions
Although, a company incorporated under section 8 can be a Private or Public Limited Company, its name must not include the words “Private Limited” or “Public Limited”, but must end with any of the following words:
- Foundation
- Forum
- Association
- Federation
- Chambers
- Confederation
- Council
- Electoral Trust
Yes, FDI is allowed for Section 8 Companies subject to the provisions of FEMA Regulations. However, such FDI is considered as a foreign contribution under the Foreign Exchange Management Act,1999 and therefore, can be paid only with prior approval from the central government.