Philanthrophy is not about money, it’s about feeling the pain of others and caring enough about their needs to help.
If you are in for a generous cause, Moneyम्जी would definitely support you in the best possible way.
The idea of incorporating a non-profit making company in India is not a new term as it has been in the business community since ages. In Companies Act 2013, it is mentioned in the section 8 and this is why it is popularly known as the Section 8 Company. The primary objective of incorporating such company is to encourage science, sports, art, education, research, social welfare, religion and environment protection etc. where profit doesn’t play any vital role.
As far its structure is concerned, it is much alike a trust or society as it is registered under the Central Government’s Ministry of Corporate Affairs. A Section 8 Company enjoys many privileges and exemptions under Company Law.
A Non-profit Organization is a company which has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
Intends to apply its profits, if any, or other income in promoting its objects; and
Intends to prohibit the payment of any dividend to its members
Moneyम्जी makes it easy for you to incorporate a Section 8 company by providing all necessary legal and professional support in respect to incorporation and business management. We have a special discount for those working for welfare of the society.
WHY SECTION 8 COMPANY
EASE OF FORMATION
A Section 8 company can be formed by two persons only, by complying with the prescribed formalities of the Companies Act. Many privileges and exemptions under Company Law. Registered partnership firm can be a member in its own capacity.
The greatest benefit of Section 8 Company is limited liability. If any liability arises then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Being the biggest advantage with this type of company, it means that the owners are not personally responsible for business debts and obligations of the incorporation.
SEPARATE LEGAL ENTITY
This is the most prominent quality of a Section 8 Company. It refers to the statement that company and its members are completely distinctive. The biggest advantage of a section 8 company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations.
A Section 8 company is required to perform lesser legal formalities as compared to a public company. It enjoys special exemptions and privileges under the company law.
Death, insolvency and insanity etc of any of the member does not affect the continuity of the company. Thus the life of the company does not depend upon the life of its members.In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
A Section 8 company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.