Section 8 Company

Companies Act, 2013 introduced section 8 Company which is similar to Section 25 Company of the Companies Act, 1956. The general purpose of a section 8 company is to perform social or welfare activities where the profits of the company cannot be distributed as the dividend to its members. Section 8 Company registration procedure is not similar to the incorporation of a private limited company or an LLP. A separate license of section 8 company is needed to be obtained prior to the incorporation by applying to the central government of India. To obtain the license for section 8 company a statement of the objects of the company and projected statement of income, expenditure, assets, and liabilities for three years is required to be submitted to the regional director of the ministry of corporate affairs. The detailed conditions, documents required and the procedure of incorporation of section 8 company is the section.