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; expect 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.
For Promoters & Directors
- Minimum two Directors; In case of public limited company minimum three Directors
- Minimum two Shareholders; In case of public limited company minimum seven shareholders
- At least one Director should be resident in India. Directors & Shareholders can be same person
- No Minimum capital required
- Self attested copy of PAN of all Shareholders & Directors
- Self attested copy of Voter ID/Driving License/Passport/Aadhar Card of all Shareholders & Directors
- Self attest copy of Bank Statement/Electricity Bill/Telephone or Mobile Bill/Gas Bill of all Directors and Shareholders
For Registered Office
- Rent Agreement/Lease Deed; in case of rented property;
- Sale Deed/House Tax receipt/Electricity Bill; in case of owned property;
- Copies of Utility Bill (Electricity Bill/Gas Bill/Mobile or Telephone Bill) etc in owner‘s name;
- No objection from the property owner;
Copy of passport is mandatory in case of foreign nationals. In case of foreign nationals and non – resident Indians, all the documents should be notarised or apostilled or counsularised from the Indian Embassy in that country. In case any of the documents are not in English or Hindi, then the certified translation copy should be provided.