Section 8 Company Registration in India
Section 8 company registrations in India means incorporation of non-profit company under the Companies Act, 2013 mentioned in section 8 so it is named section 8. section 8 companies are popular in the sector where profit is not in prime focus instead promoting commerce, art, science, sports, education, social welfare, religion etc. section 8 company is much similar to trust and society as it is registered under the Central Government’s Ministry of Corporate Affairs.
eStartIndia make it easy for you to register a section 8 company by providing all the guidance and legal support which is required for incorporation. Section 8 companies in India has many benefits over the trust and society but it has certain limitations likes Income of the company should only be used for promoting the main objective, members cannot use the income or profit being a officer of the company.
Section 8 companies cannot pay dividend to its members and all profits generated need to be applied for the purpose of promoting its object only. An individual, Association of person, company, a firm may be member of section 8 company registered under this section.
An existing company can also be converted into section 8 company and section 8 companies can also be converted into other company by following rules and regulation prescribed in companies act. License given by central government to section 8 company can be revoked if section 8 company make any contravention with requirement and condition on which license is granted, but before making revocation a reasonable opportunity is being given to section 8 company that why its license should not be revoked.