Section 8 Company Registration
section 8 Company or a Non-Profit organization (NPO) is a Company established for promoting commerce, art, science, religion, charity or any other useful object, provided 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.
An NPO/NGO can be formed for the promotion of any useful object like sports, education, research activities etc. The term No Profit does not mean that the Company cannot generate profit or income, but it essentially means applying the income for further promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefited out of those profits.
• Many privileges and exemptions under Company Law.
• Exemption from requirement of Minimum Paid-up capital.
• Exemption of Stamp duty for registration.
• Non-application of Companies Auditing Report Order (CARO) 2003.
• A registered partnership firm can be a member of its own capacity.
• Tax deductions to the donors of the Company u/s. 80G of the Income Tax Act.
• Profit or Income of the Company shall be applied for the promotion of the main object
• Declaration of dividend or distribution of profit to the promoters is not allowed
• No member shall be appointed as a remunerated officer
•No remuneration/benefit shall be paid to a member being a servant/officer of the Company (except reimbursement of out of pocket expenses, reasonable interest on money lent or reasonable rent on the premises).
• Subsequent alteration of MoA & AoA requires prior approval of Central Govt. (i.e. ROC)
• Minimum 2 Shareholders (for Private Ltd. Co.) and 7 Shareholders (for Public Ltd. Co.)
• Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
• The directors and shareholders can be same person• DIN (Director Identification Number) for all the Directors• DSC (Digital Signature Certificate) for two of the Directors
For any Questions visit here: Section 8 Company Registration