Section 8 Company Registration
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A Section 8 Company in India is a type of organization that is formed for charitable or not-for-profit purposes. These companies are registered under Section 8 of the Companies Act, 2013 (earlier under Section 25 of the Companies Act, 1956). The primary objective of these companies is to promote social welfare, art, science, research, education, charity, religion, protection of the environment, or similar objectives, without the intention of making profits.
Key Features of a Section 8 Company:
Non-Profit Nature: The primary aim of a Section 8 Company is to promote charitable or not-for-profit objectives rather than generating profits for its members.
Limited Liability: Members of the company have limited liability, meaning their personal assets are protected in case of any debts or liabilities of the company.
Name: The name of the company must include the words “Foundation,” “Association,” “Society,” “Council,” “Charity,” “Institute,” “Academy,” or other similar words, as specified by the government.
No Dividends: Section 8 Companies are prohibited from distributing dividends to their members. Any profits earned are utilized for furthering the company’s objectives.
Registration Process: The registration process involves applying to the Registrar of Companies (RoC) with the necessary documents, including a detailed memorandum and articles of association outlining the objectives of the company.
Tax Exemptions: These companies are eligible for various tax exemptions and benefits available to non-profit organizations, subject to compliance with the prescribed regulations.
Compliance Requirements: Section 8 Companies need to comply with the regulations specified under the Companies Act, maintain proper accounting records, and file annual reports and returns with the Registrar of Companies.
Section 8 Companies play a crucial role in fostering social welfare, education, healthcare, and other charitable activities in the country. They enable individuals and organizations to pool resources and efforts for noble causes without the motive of personal gain or profit-making.
Documents Required for Section 8 Company
To register a Section 8 Company in India, the following documents are generally required:
Memorandum of Association (MoA): It outlines the objectives and scope of the company’s operations, specifying its non-profit objectives as per Section 8 of the Companies Act, 2013.
Articles of Association (AoA): This document details the rules and regulations governing the internal management and administration of the company.
Identity Proof: Copies of identity proofs (Aadhaar card, PAN card, passport, voter ID, etc.) of all proposed directors and promoters.
Address Proof: Copies of address proofs (electricity bill, water bill, lease agreement, etc.) of all proposed directors and promoters.
Registered Office Proof: Documents verifying the registered office address of the company, such as rent agreement, lease deed, utility bills, or property tax receipts.
Declaration by Directors: A declaration stating that all the necessary conditions and requirements of Section 8 of the Companies Act are being complied with for the formation of the company.
No Objection Certificate (NOC): NOC from the landlord or owner of the registered office premises.
Income Tax PAN: PAN card details of the proposed directors and the company.
Declaration of Compliance: A declaration stating compliance with the provisions of the Companies Act regarding the incorporation of a Section 8 Company.
Statement of Assets and Liabilities: A statement showing the estimated receipts and expenditure, income, and sources of income, as well as the details of the property, assets, and liabilities of the company.
Director’s Consent: Consent of all proposed directors to act as directors of the company.
Board Resolution: If applicable, a board resolution from an existing company (if a corporate body is one of the promoters) authorizing participation in the incorporation of the Section 8 Company.
The exact documentation requirements might vary based on the specific circumstances, the jurisdiction, and any additional directives from the Registrar of Companies. It’s advisable to consult a legal advisor or a professional firm specializing in company registrations to ensure compliance with all necessary regulations and to gather the correct documentation for registering a Section 8 Company.