About Section 8 Company
As far as structure is concerned, it is similar to a trust or society. Section 8 companies has various advantages over Trust or Society like recognition and better legal standing, higher credibility amongst donors, government departments and other stakeholders. The internal governance of a Section 8 company is similar to that of a society. The objective behind the incorporation of non-profit making company is to promote science, sports, art, education, research, social welfare, religion, charity and environment protection, etc., where profit doesn’t play any role. It is important to have objects with non-profit motive.
|DIN & DS 1 – 2 Days||Drafting MOA & AOA2 to 4 Days||Submission of forms to MCA4 to 5 Days||Certificate Of Incorporation6 to 10Days|
Advantages of One Person Company
Simple Registration Process.
Section 8 Company can be registered by two or more persons, by complying with the prescribed limited formalities of the Companies Act, 2013.
Limited liability is the greatest benefit of Section 8 Company. If any legal liability arise then neither it’s member nor it’s director’s personally affected; Liability of the members are only for the unpaid amount on shares held by them and not more than that. Shareholders are not liable for Company’s debts and liabilities.
Separate Legal Entity
One of the best advantage of a Section 8 Company is that it is distinct from that of its members. A company is a separate entity having its own rights & Obligations.
A company with ‘perpetual succession’, has continued or uninterrupted existence until it is legally shut down. Company, being a separate legal entity, is not affected by the death of any member or transferable of shares but continues to be in existence.
Shares of a Section 8 company are easily transferable by a member to any other person. No more complicated formalities are there.
A company being a separate legal person, can purchase, own, enjoy and alienate or sale, property in its own name. No member or shareholder can make any claim upon the property of the company so long as the company is a going concern.
Section 8 Company is required to do lesser legal formalities as compared to a Public Limited Company. It gets special exemptions and privileges under the company act, 2013. Therefore, in Section Company, less number of compliance are required.
Frequently Asked Questions (FAQs)
How we help with Section 8 Company registration?
Registrationseva can incorporate a Section 8 Company in 25 to 30 days, subject to ROC processing time.
What is Section 8 Company?
Section 8 Companies are those companies where minimum two members are required and the limit for maximum number of members is two hundred if incorporated as privated limited and minimum three directors if incorporated as public limited company and there is no cap on maximum number of members . The minimum two or three directors are required (private limited/public limited) as the case may and the maximum number of directors shall have to be mentioned in the Company’s Articles of Association. Section 8 companies has various advantages over Trust or Society like recognition and better legal standing, higher credibility amongst donors, government departments and other stakeholders.
How many Shareholders are required to Register a Section 8 Company?
Minimum of two shareholders required to register a Section 8 Company and the number can extend maximum 200 or beyond that depending upon entity status.
How many Directors are required in Section 8 Company?
Minimum of two directors are required to register a section 8 company as private limited company and the maximum number cannot exceed beyond fifteen but if registered as public limited company, minimum 3 directors are required and there is no ceiling on maximum number of members.
How much money do I need to start a Section 8 Company?
In case of Section 8 Company, No minimum capital required.
Documents Required to Process?
For Directors And Shareholders (In Scan only) :
1. PAN Card
2. Identity Proof – Anyone (Election ID/Passport/Driving License/Aadhar Card)
4. Address Proof – Anyone and Latest by One Month (Bank Statement/Mobile Bill/Telephone Bill/Electricity Bill)
NOTE: AADHAR CARD/DL/PASSPORT/VOTER-ID WILL NOT BE ACCEPTED AS ADDRESS PROOF.
For Registered Office (In Scan only) :
In case the premises are Rented
In case the premises are Owned by any Director or any Relative
Registry Proof or House tax receipts + Latest Electricity bill + NOC from the Owner on the name of any Director
Information Required ?
Information Required (Only information NO Documents Required)1. Education Qualification of all the persons Involved
2. Any Landline number
3. Place of birth of all the persons
4. Mobile Numbers of Directors
5. Email IDs of DirectorsCompany related Information:1. State in which company will be registered
2. Complete Registered office address along with PIN Code
3. Proposed business of the company in brief
4. Proposed Name of the company
Name should be like thisFirst Name – To be unique eg. XYZ
Second Part – Activity Word eg. If Technology Company then Technologies, tecnosoft are the activity WordsComplete should be Like this: XYZ TechnologiesCompanies under section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust.Brief Significance of Prefix used in Company Name.