Section 8 Company is also known as Section 8 of the Companies Act, 2013, which relates to a built up for advancing commerce, science, art, sports, research, education, social welfare, religion, philanthropy, security of the environment or any other such thing, given the benefits, if any, or other income is connected for doing promotion for just the objects of the organization and no profit is paid to its individuals. In this manner, Section 8 Company or Section 25 Company is an organization registered under the Companies Act, 2013 for magnanimous or non-profitable purposes.
A Section 8 Company is like a Trust or Society; expect a section 8 Company is enrolled under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are enlisted under State Government directions. A section 8 organization has different focal points when contrasted with Trust or Society like an enhanced acknowledgment and better legitimate standing. Segment 8 organization additionally has higher believability among givers, Government divisions, and different partners.
Segment 8 Companies are enrolled under the Companies Act, 2013. Consequently, the procedure for registration and authentication of consolidation for a Section 8 Company is issued by the Ministry of Corporate Affairs, Government of India.
Area 8 Companies can be enrolled with names that have words like Association, Foundation, Society, Council, Charities, Club, Academy, Institute, Organization, Federation, Chamber of Commerce, Development and etc.
According to a Trust Deed the Trusts are overseen by Trustees. The Trustees idea is not there in Section 8 Company. Thus, Section 8 Companies are overseen by the Board of Directors in view of the MOA and AOA of the Section 8 Company.
Similar to a private limited organization, a Section 8 Company will likewise have income, costs, profits, and losses. Be that as it may, in a Section 8 Company the profits achieved can be utilized just for the charitable or not-revenue driven purposes specified in the MOA.
The administration of a Section 8 Company can be effectively exchanged from one individual then onto the other by adjusting the changes of the arrangement of Board of Directors. Section 8 Company can likewise be controlled by investors.
Identity and address verification will be required for all the directors and investors of the organization to be included. If there should be an occurrence of Indian nationals, PAN is compulsory. For outside nationals, apostilled or notarized copy of the passport must be submitted and it is mandatory. The valid documents need to be submitted. Residence verification records like bank statement or electricity bill must be under 2 months old.
All organizations must have an office in India which should be registered. To demonstrate access to the registered office, a current copy of the power bill or property assesses receipt or water charge must be submitted. Alongside the utility bill, agreement of rent or sale deed and a letter from the landowner with his/her agree to utilize the workplace as a registered office of an organization must be submitted.
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