The purpose of starting Section 8 Company is to encourage, promote, and sustain activities related to art, science, commerce, sports, charitable activities, and so on. Section 8 Company can be fall under a Non-Governmental Organization. Annual compliance for Section 8 Company can be hassle-free with Kanakkupillai.
Yes, a Section 8 Company can be converted into any other company including OPC as prescribed under Section 8(4)(ii) read with Rules 21 and 22 of Companies (Incorporation) Rules, 2014. This is further subject to restrictions and compliances as per other applicable laws including Income tax Act, 1961.
Section 8 Company or a Non-Profit organization (NPO) is a Company established for promoting commerce, art, science, religion, charity or any other useful object, provided the profits, if any, or other income is applied for promoting only the objects of the Company and no dividend is paid to its members.
As per section 8(1) (a) of the Companies Act, 2013 section 8 company can carry such type of activities. Bonus can be paid to employ but not to members even they are employees. There is no restriction on payment remuneration to employees/director.
All companies registered under the Companies Act, 2013 or earlier like private limited company, one person company, limited company, and section 8 company is required to file MCA annual return and income tax return for each year irrespective of the fact whether they are working or not