What is a Section 8 Company?

A Section 8 Company is a Non-Profit Organization (NPO) established under the Companies Act, 2013. Its primary objective is to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object.

Unlike other companies, Section 8 companies apply their profits, if any, or other income towards promoting their objects and intend to prohibit the payment of any dividend to their members. Taxcrafted Solutions helps you navigate the specific legal requirements to set up your non-profit entity seamlessly.

Registration Process

  • Digital Signature Certificate (DSC)
  • Director Identification Number (DIN)
  • Name Reservation (RUN)
  • License for Section 8 Company
  • Incorporation Certificate & PAN/TAN

Benefits

  • No Minimum Paid-up Capital
  • Tax Exemptions (12A & 80G)
  • Separate Legal Entity Status
  • Improved Credibility for Donors
  • Perpetual Succession

Requirements & Compliance

Essential documents and ongoing responsibilities.

Documents Required

  • PAN Card of Directors
  • ID Proof (Aadhaar/Voter ID)
  • Latest Passport Size Photos
  • Rent Agreement/NOC
  • Utility Bill of Office

Legal Compliance

  • Annual Return Filing
  • Financial Statements
  • Income Tax Returns
  • Auditor Appointment
  • Board Meetings

Post-Incorporation

  • 12A Registration
  • 80G Registration
  • FCRA Registration
  • NITI Aayog Registration
  • CSR Compliance

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Frequently Asked Questions

Common queries about Section 8 Company Registration.

What is a Section 8 Company?
A Section 8 Company is a company established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, or any such other object. It intends to apply its profits in promoting its objects and prohibits the payment of any dividend to its members.
Can a Section 8 Company distribute profits?
No, a Section 8 Company is strictly prohibited from distributing any profits or dividends to its members. Any profit earned must be reinvested back into the company to further its charitable or social objectives.
Is there a minimum capital requirement?
No, unlike other companies, a Section 8 Company does not have a minimum paid-up capital requirement. It can be incorporated without any share capital (as a company limited by guarantee) or with share capital.
Can I get tax exemption for a Section 8 Company?
Yes, Section 8 Companies are eligible for tax exemptions under Section 12A and 80G of the Income Tax Act. However, these registrations are separate and must be applied for after incorporation to avail the benefits.
How many directors are required?
A minimum of two directors are required if incorporated as a Private Limited Company, and a minimum of three directors if incorporated as a Public Limited Company. At least one director must be a resident of India.
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