Section 8 Companies are nothing other than the companies incorporated for the purpose commerce, art, science, sports, research, education, religion, protection of environment, charity, and intends to use its profits (if any) or other income for promoting these objectives. This can be in form of Private Limited Company of Public Limited Company.
A section 8 company comes into existence by The Companies Act 2013; for the first time, but this is nothing other than the section 25 company of The Companies Act 1956. These are similar to Trust or Societies or can be said similar to NGO, registered under the Ministry of Corporate Affairs and can work pan India in compare to trust or societies registered under state laws having there working area in the state of Incorporation.
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Documents Required for Section 8 Company Registration
- PAN Card and AADHAR Card of all the proposed Members and Directors. Passport in case Foreign Citizen.
- Bank Statement of Proposed Members and Directors not older than 2 months
- Latest Passport Size Photographs of Members and Directors
- Contact details of all the proposed Members and Directors
- Proposed Name for Company
- Business Object
- Education Qualification of Proposed Directors and Members
- Occupation of Proposed Directors and Members
- Shareholding Ratio
- Address details of registered place of business (Electricity Bill / Rent deed / Copy of registry / Consent and NOC of Owner)
Comparison between Trust, Societies and Section 8 Company
|1.||Governed by||Companies Act, 2013||Indian Trust Act, 1882||Societies Registration Act, 1860 or State Act’s|
|2.||Registration Document||Incorporation Certificate and MOA / AOA||Trust Deed Registered by Registrar||Registration Certificate issued by Registrar of Societies and Memorandum of Society.|
|3.||Minimum Requirement||Section-8 Company requires at least two people.||At least two trustees are required.||At least seven members are required to form a society.|
|4.||Dissolution||It can be dissolved in accordance with the provisions of the Companies Act, 2013 and rules made there under||Public Trust are generally irrevocable||Society can be dissolved which shall be approved by at least 3/4 of the Members of the society.|
|5.||Control||It is managed by the Board of Directors||Mostly by Managing Trustee||There is no control of anyone in societies decision is taken by majority.|
|6.||Area of operation||It can operate all over India||It can operate all over India if not bounded by trust deed.||Generally societies can operate in the specific state only.|
|7.||Bank Account Operations||A person authorized by Board Resolution||Mostly by managing trustee||Generally By the President and Treasurer.|
|8.||Compliance||Similar Compliances as a Private / Public Company to be fulfilled.||Basic Annual Compliances like ITR filing and Getting books audited if required.||Mandatory filing of accounts with registrar of Societies and other basic compliances like ITR filing and Auditing if required.|