Starting A Business?
VLN & Associates have an expert team to help budding entrepreneurs to set-up their business in India, offering a variety of company registration like Private limited company registration, one person company (OPC) registration, Nidhi Company Registration, Section 8 Company (Non-profit organisations) Registration, Producer Company Registration and Indian Subsidiary registration.
We offer all kinds of company related services, from the start till the end. We at VLN & Associates guide young entrepreneurs with their start-ups, not just with the registration part, but also advising them to smartly procure, use and invest their funds. We also advice our clients about the different type of organisation available to start to suit their requirements.
Non-Profit Organisation (Section 8 Companies)
Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.
A Section 8 Company is similar to a Trust or Society; except, a section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.
Registration
Section 8 Companies are registered under the Companies Act, 2013. Hence, the process for registration and certificate of incorporation for a Section 8 Company is issued by the Ministry of Corporate Affairs, Government of India.
Name
Section 8 Companies can be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organisation, Federation, Chamber of Commerce, Development and more.
Profits
Like a private limited company, a Section 8 Company will also have revenue, expenses, profits and losses. However, in a Section 8 Company the profits can be used only for the charitable or not-for-profit purposes mentioned in the MOA.
Management
Trusts are managed by Trustees as per a Trust Deed. Section 8 Company does not have the concept of Trustees. Hence, Section 8 Companies are managed by the Board of Directors based on the MOA and AOA of the Section 8 Company.
Transferability
The management of a Section 8 Company can be easily transferred from one person to another by altering the changing the composition of Board of Directors. Section 8 Company can also be controlled by shareholders.
DOCUMENTS REQUIRED FOR SECTION 8 COMPANY REGISTRATION
Identity and Address Proof
Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be submitted mandatorily. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
Identity Proof of Directors and Shareholders
- PAN for Indian Nationals.
- Apostilled or Notarised Passport copy for Foreign Nationals.
Proof for Registered Office in India
- Rental Agreement or Sale deed AND Copy of Electricity Bill, Property Tax Receipt.
- No Objection Letter from the landlord for use of Premises as the Registered Office.
Registered Office Proof
All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.
Address Proof of Directors and Shareholders
- Passport, Driver's License, Aadhaar AND Bank Statement or Electricity Bill.
- The last two documents must be valid, recent and less than 2 months old.
Signed Incorporation Documents
- Signed Digital Signature Application Documents in Hard Copy.
- Other Incorporation Documents Signed & Uploaded as Soft Copy.
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