Which Companies are Known as Section 8 Companies?

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Which Companies are Known as Section 8 Companies?

A Section 8 company is recognized as a Non-Profit Organization or Non-Governmental Organization committed to advancing fields such as art, culture, technology, science, commerce, education, and charity. Its primary objective is to utilize any generated profits exclusively for the betterment of society.

India hosts numerous Section 8 companies, and you can explore the compilation of the top 10 Section 8 companies in the country.

Which companies are called Section 8 Companies?

Companies with altruistic objectives, dedicated to the well-being of society in domains like art, culture, science, technology, commerce, education, etc., are categorized as Section 8 companies. In such entities, any profits generated cannot be allocated for the benefit of its members but must be exclusively employed for business-related purposes.

Examples of Section 8 Companies

Examples of Section 8 Companies

Examples of Section 8 Companies include Infosys Foundation, Reliance Foundation, Tata Foundation, Reliance Research Institute, FICCI, CII, Pratham Education Foundation, India International Trade Centre, and more. These organizations are registered under Section 8 of the Companies Act, 2013.

If you’re looking to establish your Section 8 company, our team is available to provide legal assistance. These companies channel their profits towards welfare initiatives and do not distribute them among shareholders.

How to form a Section 8 Company?

How to form a Section 8 Company?

According to the regulations outlined in the Companies Act, 2013, the registration process for a Section 8 company involves submitting all necessary documents and fees through the MCA portal. If the pertinent ministry approves your documents, your Section 8 company can be incorporated within 7–10 working days.

This intricate procedure encompasses filing various forms with the Registrar of the company, including the application for DSC and several other forms.

Additionally, it is essential to verify the availability of a suitable name for your Section 8 company, with certain limitations. Suffixes such as Pvt Ltd, Ltd, or Public Ltd cannot be used; instead, terms like foundation, federation, council, etc., are permissible.

Feel free to reach out to us to fulfill your dream of incorporating your company at a minimal cost, starting at just Rs 4,999, covering government and professional fees.

Advantages of Section 8 Company

Advantages of Section 8 Company

Section 8 company benefits from limited liability, implying that its members are responsible for covering losses in the company only up to their invested capital.

These companies receive multiple tax exemptions, including Income Tax benefits.

  1. Functioning as a distinct legal entity from its members, a Section 8 company enjoys immunity from various annual compliance requirements and procedural checks.

2. Compared to NGOs, societies, or trusts, Section 8 companies generally possess higher credibility.

3. Notably, there is no mandatory minimum capital requirement for the incorporation of a Section 8 company.

Disadvantages of a Section 8 Company

Disadvantages of a Section 8 Company

  • In such companies, members are not liable to share profits in the company.
  • Dividends are not paid to the members and directors of the company.
  • Profits can only be used for further charitable goals.
  • The license of a Section 8 company is revocable for a variety of reasons.
Closure of a Section 8 company

Closure of a Section 8 company

Members of a Section 8 company have the option to voluntarily dissolve the company following the guidelines provided by the Government of India. In the process of winding up, should any assets persist after settling all debts and liabilities, they must be transferred to a comparable organization. Alternatively, these assets can be liquidated, and the proceeds will be directed to the Insolvency and Bankruptcy fund.

How AURIGA ACCOUNTING Help to register SECTION 8 Company?

How AURIGA ACCOUNTING Help to register SECTION 8 Company?

  1. Legal Guidance: AURIGA ACCOUNTING often provides expert legal guidance on the requirements and processes involved in registering a Section 8 company. This may include understanding the legal obligations, documentation, and compliance standards.
  2. Document Preparation: AURIGA ACCOUNTING Assistance in preparing and compiling the necessary documents required for the registration process. This may involve drafting the Memorandum of Association, Articles of Association, and other essential paperwork.
  3. Submission Support: AURIGA ACCOUNTING Help in submitting the documents to the appropriate regulatory authorities, such as the Ministry of Corporate Affairs (MCA) in India, ensuring that the submission complies with the regulatory framework.
  4. Compliance Assistance: AURIGA ACCOUNTING Ongoing support for compliance with regulatory requirements after the Section 8 company is registered. This may include filing annual reports, adhering to tax regulations, and other compliance-related matters.
  5. Name Availability Check: AURIGA ACCOUNTING Assistance in checking and ensuring the availability of a suitable name for the Section 8 company, considering the specific restrictions and guidelines.
 
 
 
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