When a company is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or any such other object. It intends to apply all its profits, income, or other earnings, in promoting these objects and pays no dividend or income to its members. Such a company is termed as Section 8 Company.

FEATURES OF SECTION 8 COMPANY REGISTRATION

• A section 8 company has the significant feature of being a Separate Legal Entity. Registering NGO means providing a “distinct identity” which means that company shall be held liable for the malicious acts of company. Hence, members and directors will not be liable for any such act and vice versa.
• As per law, only public or private company can convert themselves into a section 8 company. Whereas one person company can never convert itself into a Section 8 Company.
• There is No minimum share capital required to register a section 8 company in India. Hence, it can be registered with any amount as per the need and ideas of the members.
• There is no need to end the name of the company with the word Private limited. However, applicant can add
• Section 8 company can be amalgamated only with the other Section 8 company which are having similar objectives.
• The Profits of the section 8 company can be utilized only in achieving the objective of the company and cannot be utilized for other purpose.
• The name of section 8 company shall include words like the foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc.

Documents Required for Section 8 Company Registration

Passport size photographs

Every member or subscriber of the section 8 company is required to submit recent passport size photographs.

 Identity Proof

It is mandatory for subscribers and First Directors to submit self-attested copy of Aadhar card and PAN card as the Identity proofs.

 Permanent address proof

 Anyone of the following (Voter ID, Passport, Driving License) can be submitted by the Subscribers and Directors as the permanent address proof.

 Present address proof

The Subscribers and Directors are required to submit a copy of self-attested Bank Statement or Utility Bills (for e.g., Electricity Bill, GAS Bill, Telephone Bill, Mobile Bill) not older than 2 months from the date of submission.

Registered office proof

 It is mandatory for every company to have its registered office and proof shall be submitted in the form of Utility bills

 Digital Signature Certificate

 Now, it is mandatory to sign e-Forms digitally, hence it is advised every person who intends to become director or shareholder in any of the company to obtain DSC from the verified authorities such as Vsign, NSDL etc.

Frequently Asked Questions (FAQs)

Q1. Can a one-person company become a member of Section 8 Company?

Ans.No, Rule 3(6) of the Companies (Incorporation) Rules, 2014 prohibits one person company to invest in securities of anybody corporate.

Q2. Can a partnership firm or a Limited Liability Partnership become a member of Section 8 Company?

Ans. Yes, under the Companies Act, 2013, a Partnership firm or an LLP can become the member of Section 8 Company. The provisions of respective Acts need to be complied with by the partnership firm or LLP as the case may be

Q3. Whether a One person Company can be converted into a Section 8 Company?

Ans. Yes, one person company may convert itself into a private/ public company and then conversion of such private/public company into Section 8 is possible.

If you want to Incorporate a Section 8 Company, we at Compliance Calendar LLP has a dedicated team of professionals who are experts and can guide you step by step in the Section 8 Company Registration Process. For any query you can reach us at info@ccoffice.in or call at 9988424211.