Section 8 Company

Service Details

What is Section 8 Company?

NGO (Non-Government Organization) is an organization that promotes sports, art, education, research, social welfare, religion, charity, protection of the environment, science, and many more. The main objective of NGO Section 8 company is not to earn a profit while doing the operation if in any case, a profit earns from the operation, the profit is not to be shared among owners/members else take advantage of attaining the objects for which an NGO is formed.

An NGO can be registered using three different structures being a
company under:-

Section 8 of the Companies Act, 2013
Trust under India Trusts Act, 1882
Society under Societies Registration Act, 1860

Advantages of Section 8 Company

Section 8 companies are a non-profit organization, so they support the exemption from the provision of income tax. Thecompanies also get many other tax benefits and deductions.

A section 8 company has to pay less stamp duty on the MoA and AoA of public or private limited companies which other companies pay.

The limited Liability Companies do not have any kind of advantage to transfer their ownership, but the income tax Act, 1961 does not confide Section 8 Companies to transfer their ownership, whereby, enabling the transfer of both movable and immovable interest without any obstacles or restrictions.

Unlike the other limited companies like private, public, or one person, a section 8 company does not require indeed share capital to set up the entity. The members can use the funds directly from their donations and subscriptions.

Section 8 company has a clear legal entity which means the company’s existence is different from its members.

Documents Required

Requirements for Private Limited Company

Indian Directors

Foreign Directors

Identity Proof

Aadhar card/Passport / Voter Identity Card / Driving license.

Passport and National Id issued by the Government.

Residential Proof

Bank Statement/Mobile Bill/Telephone Bill/ Electricity Bill

Passport

Not Mandatory

Passport is mandatory.

PAN Card

Mandatory

Not Required

Registered Office Proof

Electricity bill/ Gas bill

Disadvantages of Section 8 Company

The central objective of Section 8 companiesis to use the profits and income of the company in the promotion of some specific field only and not for any other causes.

The central Government urges many compliances on Section 8 companies. All the rules and regulations should be included in the Memorandum of Association and Articles of Association.

The members of a Section 8 company obtain zero benefits or any perks out of the company. They can afford to repay their pocket expenses that might have occurred during the course.

The members of a Section 8 company can’t share the profits among them. The profits should only be used for the welfare of the company’s objective which goes around the advancement of science, art, sports, commerce, and environmental protection.

Why choose section 8 company incorporation in India?

Incorporation of Section 8 company is more convenient and easy rather than the other modes of registering an NGO. Some of the benefits of section 8 company incorporation are indexed below:-

Enjoy the less exemption from stamp duty in Sec-8
Well-organized operations and prominent flexibility
No requirement for physical presence as well as no need for a thorough registration process. Moreover, the donors of the company can assist tax deduction
Section 8 companies can be established with or without share capital.
Hence, the funds are brought in the form of donations.
It is easy for shareholders to transfer their shares efficiently.

FAQs

Common Questions About Our Consulting Services

Is a Fire Certificate mandatory for all types of buildings?

Yes, obtaining a Fire Certificate is mandatory for most commercial, industrial, and high-occupancy residential buildings. The specific requirements may vary based on local regulations and the building's size and purpose.

How long is a Fire Certificate valid?

The validity period of a Fire Certificate varies by jurisdiction but typically ranges from 1 to 3 years. Renewal requires re-inspection and verification that all fire safety measures are maintained.

What are the consequences of not having a Fire Certificate?

Operating without a valid Fire Certificate can lead to legal penalties, including fines, closure of the premises, and potential criminal charges in case of fire incidents resulting in harm or damage.

How long does it take to obtain a Fire Certificate?

The processing time can vary but generally takes between 15 to 30 days from the date of application, provided all requirements are met, and no significant deficiencies are found during inspection.

Can I apply for a Fire Certificate online?

Many jurisdictions offer online application facilities through official government portals. Check with your local fire department or municipal authority for available online services.

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