Section 8 company is named after section 8 of the companies act 2013. Which pertaining to be established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object provided the profits, if any.
A section 8 company is similar to a trust or society except a section 8 company is registered under the central govt.’s ministry of corporate affairs. Trusts and societies are registered under state govt. regulations.
The income of the company must be used to promote only charitable objects and can not pay any dividends to the members of the company. The central govt. provides an incorporation certificate to all such companies and also informs them some restrictions and conditions in case they don’t fulfil them. The central govt. may also order them to wind up the company. In the case fraud objectives of the company are proved legal actions will be taken against all officers of the company.
For registration under section 8 company the companies needs to follow the following instructions
DOCUMENTS REQUIRED FOR REGISTRATION UNDER SECTION 8 COMPANY
The documents required in the formation of a section 8 company are as gives below-
Section 8 registration about 25-35 working days.
PROCEDURE FOR REGISTRATION OF SECTION 8 COMPANY
There are the following steps you need to follow while going for registration under section 8 company details
Yes, there is a need of at least 2 directors for the formation of section 8 company.
According to section 8(3) of companies act 2013 a partnership firm can be a member of a non-profit company registered under section 8. Such member of the firm shall cease upon dissolution of the firm.
The entire procedure is 100% online and you don’t have to be present at any office for incorporation, A scanned copy of documents is to be attached.
Yes, it is necessary to have a non- profit motive to incorporate section 8 company.
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