REGISTER A SECTION 8 COMPANY

Companies Act, 2013 introduced section 8 Company which is similar to Section 25 company of the Companies Act, 1956. The general purpose of starting a section 8 company is to do social or welfare activities where the profits of the company can not be distributed as the dividend to its members. Section 8 Company registration procedure is different from the incorporation of a private limited company or an LLP. A separate license of section 8 company is required to be obtained before incorporation by applying to the central government of India. To get the license for section 8 company a statement of the objects of the company and projected statement of income, expenditure, assets and liabilities for three years is required to be submitted to the regional director of the ministry of corporate affairs. The detailed conditions, documents required and the procedure of incorporation of section 8 company is as under.

A Section 8 Company is similar to a Trust or Society; expect, 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.