A Section-8 Company is a gift to the community as it encourages Science, Sports, Arts, Education, Social Welfare, Religion, Charity and Environment protection, etc. Applies its profits if an or other income in promoting its object and it does not pay any dividend to its members. It is an age-old concept earlier it was known as section 25 under the companies act and now it is known as section-8 Company.
It works towards a diverse range, right from women empowerment, children education, community development, social welfare, protect animal and plants, child labour and environment, and any other non-profit activity to fulfill its object.
Section-8 Company can only be registered with names that contain any one of the below a word like foundation, forum, association, Federation, society, Confederation, council, club charities, institute, Electoral Trust, academy, organization, chamber of commerce, development, and more.
If you want to help people and work for the betterment of society, you should choose Section 8 company registration. The process of its formation is not easy, However, through VS IPR & LEGAL ADVISORS we will help you in Registration and in all the Compliance after Registration.
Many privilege and exemption under company law
Donor of the company can claim Tax deduction under section 80G of the income tax Act
No Stamp duty required
Can collect donation easily
ANALYSIS ON SECTION-8 COMPANY
Minimum Member 2
Minimum Director 2
REGISTRATION BENEFITS OF SECTION -8 COMPANY
A Section-8 Company can be formed by 2 persons only, by complying with the prescribed formalities of the Companies Act.Easy formation:
Section-8 Company has more importance as compared to Trust or Society. The act provides many privileges and exemption under the law to the section-8 Company as compared to Trust or Society.
The liability of the shareholder is limited up to unpaid subscription money in his name and the personal Asset does not get affected by it.
Separate Legal entity:
Section 8 Company is an artificial distinct Entity so it is separated by law from its owner.
Death and insolvency of any of the members does not affect the continuity of the company. Thus the life of its members does not affect the company. A person can become a member or even can leave the organization. Transfer of share can not affect the company.
Compare to Trust / Society compliance burden is less in section-8 Company.
Like other Company section-8 company will also have revenue, profit, expenses, and losses. However, in Section-8 Company the profit can use for furtherance of its object i.e charitable purpose only.
DOCUMENTS REQUIRED FOR SECTION 8 COMPANY REGISTRATION