Register a Section 8 Company

What is Section 8 Company?

Section 8 Company is also termed as the Non-Profit organization(NPO) which is established to promote art, science, commerce, religion, charity or any other advantageous object, provided the profits if any. Other revenue is utilized for supporting & promoting of objectives of the company and its members fund no benefit.

How many members are required to incorporate a Section 8 Company?

It depends on the type of Company you are registering, in case you are registering a Private Company then only two members are required and if it is a Public Limited Company then it should have seven members.

Is it possible to convert Section 8 Company to a Private Limited Company?

Yes, definitely it is permissible to convert Section-8 Company into Private Limited Company and related options are available for the same.

How much time is required to register a Section 8 Company?

It is a complicated process but with the help of QuickCompany it is much easier. It takes only 15-25 working days to register a Section 8 Company after the documents are submitted.

What are the documents required for registering Section 8 Company?

The following are the requirements

• Copy of PAN card duly signed by the applicant.
• Id Proof: Voter Id or Passport or Aadhar card or Driving license. All the documents need to be signed by the applicant.
• Address Proof: It can include latest Bank account statement or Telephone bill or Electricity Bill. The documents should not be older than two months.
• Photo Proof(latest passport size picture)
• Office Address proof of the company is needed.
• NOC(No Objection Certificate from the owner.
• Copy of Sales Deed
• If the applicant is an NRI then the documents must be notarized and passport is compulsory.

Is it permitted to register a Section-8 Company for an NRI?

Yes, an NRI can register a Section-8 Company provided all the documents required are submitted and notarized by the professionals.

What are the benefits associated with the Section 8 Company?

There are various privileges and exclusions under the Company Law.

• There is no need of a Minimum paid-up Capital
• Stamp duty registrations are also exempted
• Companies Auditor is not applicable.
• Any registered partnership firm can be a member in its individual capacity.
• Tax deductions to the donors of the Company

Is it necessary to have a Charitable object to register a Section 8 Company?

It is important to have objects with non-profit motive, and then it can be registered as Section-8 Company.

Can INC-29 be applied for Section 8 Company?

No, certainly it is not permitted to apply INC-29 for Section-8 Company. The reason is Section-8 Companies need to get license from the RD and INC-29 facilities are not suitable for this specific company.

How long can a Company remain registered under the Companies Act 1956?

The registration under Companies Act, 1956 is unchanging in nature and provides continuous existence. Under extreme conditions, such companies can be reimbursed. The government is the official liquidator of Corporations.

Which are the laws that regulate the cooperative societies in India?

Laws that are regulating the Cooperative Societies in India are as follows;

• State Cooperative Societies Acts of individual states
• Multi-State Cooperative Societies Act, 2002 for the multi-state Cooperative societies including Area of operation in more than one State.

Is CSR related to Section-8 Company?

Yes, Corporate Social Responsibilities(CSR) is a part of all companies and similar to Section 8 Company it has non-profit related objectives.

What are the main objectives of Section-8 Company?

The main objectives of Section 8 Company must ensure that it is related apply its profits(if any) in promoting and supporting the objectives. It should not provide any benefit/fund to its members. The objects to be promoted includes;

• Commerce
• Science
• Sports
• Research
• Education
• Social Welfare
• Religion
• Charity
• Protection of Environment.

How much Paid-up capital is required??

To register Section 8 Company no paid-up capital is required. This is mentioned under sub section 6 of section 3 as per Companies Act, 1956.