SECTION 8 COMPANY REGISTRATION

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Section 8 registration pertains to the incorporation of non-profit organizations under Section 8 of the Companies Act in India. These entities are formed for promoting charitable, social welfare, educational, scientific, or similar causes. Registration involves obtaining a license from the government, fulfilling specific requirements such as minimum capital, and adhering to regulatory compliance. Section 8 companies are prohibited from distributing dividends to members and must reinvest profits for furthering their objectives.

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A Section 8 Company registration refers to a specific type of non-profit organization (NPO) established under Section 8 of the Companies Act, 2013 (or its equivalent in other jurisdictions). In India, this type of company is primarily formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other such purpose, excluding the pursuit of profit.

Here are some key features and considerations regarding Section 8 Company registration:

  1. Non-profit motive: The primary objective of a Section 8 Company is to promote charitable or not-for-profit activities. Any profits generated are reinvested for the organization’s objectives and cannot be distributed to its members.
  2. Legal entity: A Section 8 Company is a separate legal entity, distinct from its members. It can enter into contracts, own property, and sue or be sued in its own name.
  3. Minimum requirements: To register as a Section 8 Company, there must be at least two directors (in the case of private limited companies) or three directors (in the case of public limited companies). Additionally, there must be a minimum of two shareholders.
  4. License application: In India, organizations intending to register as Section 8.

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