What is Section 8 Company (Old Section 25 Company)?
Section 8 Company is governed by Indian Companies Act 2013; it is administered by Ministry of Corporate Affairs (MCA) through Registrar of Companies (ROC).
Section 8 Company is otherwise called Non-Profitable Company which is licence under Section 8 of Companies Act for the object of promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the environment or any such other object, provided that the profits, if any, or the other income is applied for promoting only the objects of the company and also ‘no’ dividend is paid to its members.
Who can form a Non-Profitable Section 8 Company?
Any two or more persons Required
Even a Partnership From can be a Member
Any Existing Company can also be a Member
Why Section 8 Company
Giving Back. Many of the upcoming as well as grown successful entrepreneur will be interested in ‘Giving Back’ to the Society. This is for the people who love to work for Charity with his own company. This for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment.
Documents that are required for Section 8 Company Registration
- Address Proof of all the Directors
- Passport (or)
- Driving Licence (or)
- Aadhar (or) Voter ID
- ID Proof of all the Directors
- Pan Card
- Passport (or) Driving Licence (or)
- Aadhar (or) Voter ID
- Passport size Photo of all the Directors
- PAN Card of all the Directors
- Rental deed of the proposed Company
- EB Card and EB Bill
What are the 5 advantages of Section 8 Company?
- Tax Exemption: The downer can enjoy tax exemption for his donation towards the Section 8 Company.
- Separate Legal Entity: As like Private Limited and Public Limited, Section 8 company is also a separate legal Entity.
- No minimum Capital: There no minimum paid-up capital mentioned in the Companies Act unlike Private Limited Company, which requires minimum paid-up capital of Rs.1,00,000/-.
- No Stamp Duty need to be Paid: Unlike other Companies (Private Limited of Private Limited), Section 8 Non-Profitable Company doesn’t require any stamp duty for its formation.
- No Suffix on Title required: Usually the Private Limited and Public Limited companies need to add suffix with the status Eg. XYZ Travels Private Limited or ABC Technologies Public Limited
Procedure for Section 8 Company Registration
Obtain Digital Signature Certificate (DSC)
Apply for Director Identification Number (DIN) – Form DIR – 3
Get Name Approval from ROC
Submission of MOA & AOA – Form INC – 13
Obtain Licence under Section 8 of Companies Act.
Certification of Incorporation