Only the central registration and incorporation of trusts, societies, and non-profit organisations (NGOs) is covered by Section 8 of the Companies Act of 2013. The official section 8 of the Companies Act, 2013 PDF, released by the Ministry of Corporate Affairs, contains detailed information regarding Section 8. To establish a non-profit organisation, you can register a section 8 business with the Ministry of Corporate Affairs.

                                                            Businesses incorporated in accordance with the Companies Act of 2013's Section 8.

The majority of companies registered under section 8 of the Companies Act, 2013 are non-profit entities whose primary goal is to promote the welfare of society as a whole. They are not intended to make money from any kind of transaction.

In order to promote welfare and diverse causes, including sports, education, science, art, research, technology, literature, awards, and so forth, Section 8 companies are created. Dividends and profits cannot be distributed among the members and shareholders of a section 8 corporation by its founders and shareholders.

Features of the Section 8 Company

1. Encourage the Social Welfare

For the aim of advancing the welfare of others and industries such as education, agriculture, art and culture, technology, science, entrepreneurship, research, social welfare, charity, religious programmes, etc., a Section 8 company is incorporated under the MCA. Their primary goal is to promote the well-being of society; they do not seek to make money or distribute dividends to their members.

2. Absence of a minimum capital requirement

Unlike other company forms, a section 8 business is exempt from the minimum paid-up share capital requirement.

3. Government of India licence

Section 8 of the Companies Act, 2013, which is overseen by the Ministry of Corporate Affairs, governs the incorporation of section 8 companies. These businesses exist for the benefit of society's underprivileged.

4. Restricted Liability

A Section 8 company's members are not liable for more than their subscribed capital and share, therefore the company's losses cannot be covered by their personal assets.

5. Distribution of Dividends

Section 8 companies are prohibited from distributing dividends and profits to their shareholders or members. 

Application

A Section 8 corporation may only use suffixes such as foundation, federation, council, organisation, or confederation in its name; it is not permitted to use private limited or limited company in its name.

Documentation needed to register a section 8 company

According to the Companies Act of 2013, in order to register, a company must present valid identification and evidence of address. 

Proof of Directors' Identity and Address

Driving Permit with Adhar Card

DIN (Directors Identification Number) and PAN cards

Mobile number and email address

Utility bills (such as those for broadband, electricity, etc.) 

most recent bank statements, no more than two months old

Proof of Registered Office Address

The time needed to register a section 8 corporation

Under the Companies Act of 2013, registering a section 8 corporation typically takes seven to ten working days. The Ministry of Corporate Affairs' (MCA) verification and processing of the documents is the reason for the time needed.

Section 8: Required Time and Fees for Company Registration

The mandatory government charge and any professional fees paid to the lawyer or other professional you are using to incorporate your Section 8 company must be paid in order to register the business. Your Section 8 Company can be incorporated at Professional Utilities for a very low price, starting at just Rs 4,999, and it will take 7 to 10 working days to complete.

Conclusion

Finally, we would like to point out that a section 8 corporation can be incorporated as a non-profit organisation, or NGO, with the sole purpose of promoting public awareness of various social problems and the welfare of people. A section 8 corporation is not permitted to turn a profit or provide dividends to its directors or shareholders. 

Contact our experts at Professional Utilities if you intend to incorporate your Section 8 business, and we will assist you through the easy process of company incorporation