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Section 8 companies

Section 8 companies

The Indian Companies Act also provides for registration of special entities viz., Section 8 companies – not for profit organization. Such entities are set up for the promotion of art, commerce, science, sports, education, research, social welfare, charity or protection of the environment. The profits are applied towards promotion of the company’s objectives and payment of dividend is prohibited. At Legaljini, we can help you to incorporate Section 8 Company.

 

Advantages of Section 8 companies

Company Limited by Guarantee:

Section 8 companies can be formed with or without share capital. In case they are formed without share capital, the necessary funds for carrying the business are brought in form of donations, subscriptions from members of such company. The constitution of such companies can either be that of a Private Company or a Public Company.

Not Required To Add The Suffix:

Section 8 Companies are not required to add the suffix Limited or Private Limited at the end of their name. All companies having limited liability are required to use the term ‘limited’ or ‘private limited’ as the case may be in their names as required by section 13. But section 8 companies are allowed to dispense with the use of term ‘limited’ or ‘private limited’ from their names [sub-sec. (6)].

Section 8 companies Process

A minimum of two designated partners are required to form a LLP.

01

Digital Signature Certificate

Obtain Digital Signature Certificate (DSC) for the proposed director/s.

02

DIN Number

Obtain Director Identification Number (DIN) for the proposed director/s.

03

Application

Select a suitable company name and forward the application to Ministry of Corporate Affairs (MCA) for availability of name.

04

Drafting

Draft its Memorandum of Association (MOA) and Articles of Association (AOA).

05

Sign and file documents

Sign and file documents with respect to issuance of license with the Registrar of Companies (ROC) electronically.

06

License

Obtain license from Registrar of Companies.

07

Documents

Sign and file various documents including MOA & AOA with the Registrar of Companies (ROC) electronically

08

Payment

Payment of requisite fees to Ministry of Corporate Affairs along with the stamp duty.

09

Certificate

Obtain Certificate of Incorporation.