SECTION 8 COMPANY
As per Section 8(1a, 1b, 1c) of the Companies Act, 2013, a Section 8 company
can be established for the “promotion of commerce, art, science, sports, education,
research, social welfare, religion, charity, protection of environment or any such other
object”. The Act further states that a Section 8 company can purse the above objects
subject to the condition that it “intends to apply its profits, if any, or other income
in promoting its objects” and “intends to prohibit the payment of any dividend to its
members.”. In simple terms, a Section 8 company must promote a public cause and the
proceeds generated by the entity must solely be used to support the stated public
cause(s) only.
Section 8 Companies are a legal structure of Non-Profit Organizations (NPOs) or
Non-Governmental organizations (NGOs) with the authority to work across the country. It
is similar to a Trust or Society, the only difference is of the governing authorities. A
Section 8 Company is registered and governed under the Central Government's Ministry of
Corporate Affairs whereas Trusts and Societies are regulated under State Government
regulations.
Documents Required:
- Passport Size Photograph
- PAN
- Aadhar
- Driving licence/voter card/passport
- Last two months bank statement
- Company’s rent agreement
- NOC from the owner of the property
- Utility Bill
