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In India, a Section 8 Company functions as an NGO dedicated to advancing various fields such as art, science, education, sports, and charitable activities. Unlike Trusts or Societies, profits generated by Section 8 Companies are reinvested to support their stated objectives rather than being distributed to company members. The registration process for a Section 8 Company falls under the jurisdiction of the Ministry of Corporate Affairs (MCA), distinguishing it from Trusts and Societies, which are governed by State Government Registrars.
Opting for Section 8 Company registration through RegisterKaro offers distinct advantages over Trusts and Societies. The Section 8 structure enhances credibility with government departments, stakeholders, and potential donors. At RegisterKaro, our proficient team ensures a seamless registration process for your Section 8 Company. With expertise in documentation, application filing, and efficient incorporation, we alleviate your concerns, making the entire process smooth and effective.
Important Points Regarding Section 8 Company in India
Following are some vital points about Section 8 Company in India:
NGOs in India can be registered under the Registrar of Societies or as a Non-Profit entity under Section 8 Company of the Companies Act, 2013
Compliance with the Companies Act is compulsory for Section 8 Company, including Filing returns with the ROCs, maintaining books of accounts, & complying with GST and IT Act Regulations
Section 8 Company in India cannot utilize profits for purposes other than charitable objectives & cannot distribute them among shareholders of the Company
Any alterations to the Charter Documents like AoA & MOA require consent from the Government
Section 8 Companies are identical to the former Section 25 Companies Under the Companies Act 1956 and now, they are recognized as such under the prevailing legislation.