Ngo -sec 8 Company (without Capital)
Non Profit Company (Sec 8) Company
Section 8 Company, 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',
A Section 8 Company is similar to a Trust or Society; except, 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.
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 Non-profit Organization is a Company which
- Has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
- 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
WHAT IS INCLUDED IN OUR PACKAGE?
- 2 Digital Signature
- 2 DIN (Director Identification Number)
- Drafting of Documents
- Notarization of Docuemnts
- Stamping of Documents
- Filing of Name Application
- Filing of License
EASE OF FORMATION
A Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. Registered partnership firm can be a member in its own capacity.
The greatest benefit of Section 8 Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Being the biggest advantage with this type of company, it means that the owners are not personally responsible for business debts and obligations of the incorporation.
SEPARATE LEGAL ENTITY
This is the most prominent quality of a Section 8 Company. It refers to the statement that company and its members are completely distinctive. The biggest advantage of a section 8 company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
PREFERRABLE CHOICE FOR CORPORATES FOR CSR
As Big Companies have to compulsorily invest in NGO as part of CSR activities, Due to the National level Registration & More Transparency , Big Companies & donor prefers to invest in Sec 8 Company
A Section 8 company is required to perform lesser legal formalities as compared to a public company. It enjoys special exemptions and privileges under the company law.
Death, insolvency and insanity etc of any of the member does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members. In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
A Section 8 company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
- Minimum 2 Directors