Check out details of the procedure for registration of Section 8 with Companies Act, 2013
Section 8 Company Registration FAQ's
Section 8 Company Registration
A Section 8 company is a non-profit organization that can be registered in India under the Companies Act 2013. Such companies aim to promote social welfare and charitable causes, and profits earned are used for these objectives. The registration process involves fulfilling specific requirements, including a minimum of two directors, and the company must not distribute any dividends to its members.
Registration of a Section 8 company in India under the Companies Act 2013 involves a detailed procedure that must be followed strictly. Firstly, the company must obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for its directors. Next, an application must be filed with the Registrar of Companies (ROC), along with the necessary documents, including a Memorandum of Association (MOA) and Articles of Association (AOA).
Once the ROC verifies the application and the documents, the company will be granted a Certificate of Incorporation. This certificate signifies that the company is now legal and can commence its operations. However, it is essential to note that Section 8 companies cannot use "Private Limited" or "Limited" in their name and must comply with various regulations and reporting requirements.
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What is a Section 8 Company?
A Section 8 Company is a non-profit organization registered under the Companies Act 2013 in India. It is also called a Not-for-Profit Company, and its primary objective is to promote social welfare and charitable causes.
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What are the benefits of registering a Section 8 Company?
Section 8 Companies enjoy various uses, such as tax exemptions, limited liability, and separate legal identities. They can also avail foreign funding and corporate social responsibility (CSR) contributions.
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What is the minimum capital requirement for registering a Section 8 Company?
Unlike other companies, there is no minimum capital requirement for registering a Section 8 Company. However, the company must ensure sufficient capital to carry out its objectives.
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Can a Section 8 Company earn profits?
Yes, a Section 8 Company can make profits. However, these profits must be used for promoting the company's objectives and cannot be distributed as dividends to its members.
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What is the difference between a Section 8 Company and a Trust or Society?
The main difference between a Section 8 Company and a Trust or Society is that the former is registered under the Companies Act, 2013, while the latter is registered under the Indian Trusts Act, 1882 or the Societies Registration Act, 1860. Section 8 Companies have more stringent regulations and reporting requirements than Trusts and Societies.