A Section 8 company is company which intends to apply its profit or income to its object i.e non profit organisation. Section 8 company refers to a Company which has the object of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other objects; A Non profit making company (Section 8) is prohibited from paying any Dividend to its members.
A Section 8 company shall register itself under charitable objects, the Central Government shall issue a License in prescribed manner allowing the association of person to register as Private Limited or Public Limited Company. The company registered under section 8 must not alter its Memorandum or Articles without approval of central government. It has the option of converting itself into company of any other type.
DOCUMENTS REQUIRED FOR SECTION 8 COMPANY REGISTRATION
- ID proof for members
- Address Proof
- Passport size Photographs
- Copy of Rent agreement(If rented property)
- Electricity/ Water bill (Business Place)
- Copy of Property papers (If owned property)
- Landlord NOC
- Director’s Directorship details (in other Companies/LLPs, if any)
ELIGIBILITY FOR SECTION 8 COMPANY REGISTRATION
- Object must be Charitable or to promote arts, science, commerce etc.
- Intends to apply all its profit in promoting the objectives.
- Assures the prohibiting of the payment of dividends to any of its members.