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Section 8 Company or a Non-Profit organisation (NPO) is a Company established for promoting commerce, art, science, religion, sports, education, research activities, charity or any other useful social object, provided the profits and donations is applied for promoting only the objects of the company and no dividend is paid to its members or owners.
The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefitted out of those profits.
Many privileges and exemptions are available to section 8 company under Company Law
Non-application of Companies Auditor’s Report Order (CARO)
Exemption from requirement of Minimum Paid-up capital
Registered partnership firm can be a member in its own capacity
Exemption of Stamp duty for registration
Tax deductions to the donors of the Company u/s. 80G of the Income Tax
You need to arrange very simple documents of director like photograph, Pan card and one address proof. For more details, please fill the above details.
No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing to the ROC office.
ROC is a Government office with whom companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra companies are registered with Mumbai & Pune ROC. In Tamilnadu companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi there is only one ROC office, like at Bangalore, Hyderabad and so on.
No. Startupwala provides complete online Company Incorporation process. All legal documentation and visits are done by Startupwala.
No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However, every year companies have to file very basic returns with ROC office.
Company name is very important part in registration of company. The company name is divided into 3 Parts:
1) Keyword (brand name like TATA or Flipkart)
2) Activity word (i.e. showing nature of business like Software)
3) Business Type word (i.e. Pvt. Ltd. or LLP). For Incorporation of company, the suggested name should not match with existing companies or trademark.
MOA means Memorandum of Association and AOA means Articles of Association. These are the byelaws or rules based on which important matters like main business of the company or meetings is decided. These are standard legal documents prepared by Company Secretaries during registration of the Company.
Profit or Income of Non Profit Company can only be used for promotion of the charity work in which it is involved. Even declaration of dividend or distribution of profit to its promoters is not allowed
No. Promoters of Non profit company cannot be employed as paid employee of the company
Yes, Section 8 company be converted into private limited company after taking the approval from ROC.
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