Section 8 Company

A Section 8 companies are established for promoting charitable, social, educational, or religious purposes. They are also called non-profit companies because the profits generated by such companies are not distributed among its members, directors, or shareholders.

Documents Required for Section 8 Company Registration

CATEGORY DOCUMENTS REQUIRED
PROPRIETORSHIP ·       ADHAR Card and PAN Card

·       Mobile no and email address

·       Electricity bill of office address

·       If rented, NOC and rent agreement

·       Application Form (INC-12)

·       DIN & DSC (Digital Signature Certificate)

·       Passport size photo
PARTNERSHIP ·       Same documents as of proprietor

·       Partnership Deed

·       Partnership PAN Card
LLP ·       Same documents as of proprietor

·       LLP Agreement

·       LLP PAN Card
TRUST ·       Same documents as of proprietor

·       Trust Deed

·       Registration certificate

·       Trust PAN card
SOCIETY ·       Same documents as of proprietor

·       Registration certificate

·       Society PAN Card

 

Advantages of Section 8 Company Registration

  1. Separate Legal Entity
  2. More Trustworthy & Credibility
  3. Nil Stamp Duty
  4. Minimum Share Capital
  5. No Minimum Capital is Required
  6. Exemption to Donors
  7. Government Funding and Grants
  8. No Dividend Distribution

ANNUAL RETURNS

A Section 8 company in India is required to file annual returns and financial statements with the Registrar of Companies.

  • Annual return: File form MGT-7 within 60 days from the date of the Annual General Meeting (AGM).
  • Financial statements: File form AOC-4 within 30 days from the date of AGM

CLOSURE PROCEDURE

Here’s a process for the closure of a Section 8 company:

  1. Call a Board of Directors’ meeting t to approve winding up.
  2. Pass a Special Resolution with a 3/4th majority of members to approve winding up and appoint a liquidator.
  3. After passing the Special Resolution, the company needs to file form MGT-14 and form STK-2 with the Registrar of Companies (ROC) within 30 days
  4. Liquidator is appointed to Collect the assets of the company and settle the liabilities
  5. The liquidator will prepare the final accounts and submit them to the General Meeting for approval by members and then submit to ROC.
  6. Upon successful completion of the above process, the company’s name will be struck off from the Register of Companies by the RO The ROC issues a Certificate of Dissolution