ComplyHub is the answer.
ABOUT SECTION 8 COMPANY
A Non Profit Organisation in India, registered under Companies Act 2013, as Section 8 Company with a non-profit motive. Objective of Section 8 Companies are promotion of arts, commerce, charity, education, protection of environment, science, social welfare, sports, research, religion and intends to apply its profits, if any, or other income in promoting its objects. It functions exactly like a limited company including all the rights and obligations that come with such a company.
However, it differs from a company in one very crucial aspect, i.e. it cannot use the words Section 8 or “Limited” in its name. Section 8 Company is most popular form of NGO in India. It is easy to register, run or manage.
The income of the Section 8 Company must be used to promote only charitable objects and cannot pay any dividend to the members of the company.
Numerous Tax exemptions are provided to Section 8 Companies, specifically to the donors who are contributing to Section 8 Companies, they can claim the Tax exemption against the donation they made to a Section 8 company.
A Section 8 Company has more credibility as compared to any other Non-profit organization structure be it a Trust or Society. As it is a licensed by the central government. It has more stringent regulations such as no change in MOA and AOA can be done at any stage or situation in a Section 8 Company. A section 8 company due its strict compliances as regard to functioning has a more reliable image in comparison to other legal structures.
There is no prescribed limit over section 8 companies for the minimum capital requirement unlike other entities such as public limited, but the capital structure can be altered at any stage as the required for the growth of the company.
SEPARATE LEGAL ENTITY
A Section 8 Company also holds its own identity like other companies structures, and has its own separate legal standing from its member. A Section 8 Company also has a perpetual existence.
Unlike the names requirements of the private limited or a public limited company, a section 8 company does not require to use a suffix next to its name.
TRANSFER OF OWNERSHIP
The members of private limited company are prohibited to transfer their shares. But in Section 8 Company members can easily transfer the ownership of the company.
- Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)
- Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
DOCUMENTS REQUIRED FOR REGISTRATION
IDENTITY AND ADDRESS PROOF
Aadhar Card, Aadhar number is now a necessity for applying for any registration in India.
Income tax return can only be filed if the person has linked his PAN card with Aadhar number.
Address proof will be required for all directors and shareholders of the company to be incorporated.
For Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be mandatorily submitted.
Residence proof documents like bank statement or electricity bill should not be more than 2 months old.
All documents submitted must be valid
REGISTERED OFFICE PROOF
- Register office of all companies must be in India .If it is a Rented Property, Rent agreement and NOC from a landlord. If it is a Self-owned Property, Electricity bill or any other address proof.
- Documents submitted must be valid and not more than 2 month old.