A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) or Non-Governmental organizations (NGOs) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for under section 8(1a, 1b, 1c) of the Companies Act, 2013.
Advantages of Registering a Company under Section 8 Companies Act 2013
No Minimum Capital Requirement
No minimum capital limit has been mentioned for a Section 8 Company in India. And the capital structure may be altered at any stage as per the growth requirements of the company. This implies that it can be formed without any share capital.
Zero Stamp Duty
A Section 8 Company is exempt from the requirement of paying stamp duty on the MoA and AoA of the private or public limited company. Which is applicable for registration of other kinds of company structures.
Exemption to the donors
Those donating to a Section 8 Company are eligible for tax exemptions u/s 12A and 80G of the Income Tax Act.
Membership
A registered partnership firm can become a member in its individual capacity and obtain Directorship.
Name
Section 8 Company does not need to suffix Limited or Private Limited, next to its legal name. It can be registered with names that have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation.
Donation & Funding
Section 8 Company is not allowed to raise capitals by way of deposits but they can accept donations from the general public. There is no limitation to domestic donations. But to avoid money laundering cases, a proper system must be laid down to keep them in check.
Documents Needed for Section-8 Company Registration
Copy of PAN Card
Copy of Aadhar Card
Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
Two passport size Photograph
Ownership Proof House Tax
No Objection Certificate
How we work?
Fill our Registration Form & Make the Payment→
1Share the required Documents after CAs Consultation →
2Our Experts will start Drafting the Requirements→
3Once DIN & DSC is registered we proceed for Business Name Approval Process →
4Once Approved, your Section-8 Company is Registered.→
5
