Section 8 Company At ₹ 49
Section 8 Company is a type of entity which Is incorporated for the promotion of commerce, science, education, art, research, sports, religion, social welfare, environment protection, charity, protection of environment or any such other objects The sole objective of Section 8 companies is to promote objects and none of the members shall be paid an income or a dividend.
Section 8 company is suitable for non-profit objective and it may a private limited or a public limited company. As per law in case the proposed section 8 company is a private limited then minimum two promoters is required, however in case it is a public limited section 8 company then minimum 7 person must be the promoters of the company. A ‘Section 8 Company’ is eligible for certain exemptions from provisions of law and a concessional rate of fees. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of seeking a prior license from the central government under section 8 of the companies act, 2013.
1. No Profit Motive: The companies registered under section 8 of the companies act, cannot distribute profits or assets to its members.
2. No minimum Capital: There is no minimum level of capital prescribed, hence a section 8 company can be incorporated with the capital as required by it.
3. Voting Rights: The voting rights to the members of section 8 company are based on the number of shares, similar to that of any other company.
4. One Resident Director: One director of the company must be resident in India. A person is said to be a resident when he stays in India for at least 182 days in the FY.
1. No Minimum Capital Requirement
2. Income Tax Exemption
3. Best form to start your NGO/NPO
4. Can accept Donations