An organization registered under Section 8 of the Companies Act, 2013 is classified as a Not-for-Profit Organization. Its primary objective is to promote areas such as commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or similar purposes.
Section 8 Companies are prohibited from distributing dividends to their members. Any profits earned are reinvested to further the organization’s objectives. Unlike other companies, the name of a Section 8 Company can be incorporated without the suffix “Limited” or “Private Limited.” Additionally, there is no requirement for minimum paid-up capital. It is important to note that a One Person Company (OPC) cannot be established as a Section 8 Company.
Section 8 Companies are dedicated to promoting social, cultural, educational, and charitable initiatives, making them ideal for not-for-profit activities.
Section 8 Companies are eligible for various tax exemptions and benefits under the Income Tax Act, helping reduce financial burdens.
Profits are reinvested to achieve the organization’s objectives, ensuring sustained focus on its mission.
Incorporation under the Companies Act provides credibility, enhancing trust with donors, stakeholders, and other organizations.
Aadhar / Voter ID / Driving licence / Passport of Directors and Shareholders.
The Address proof of the Directors, shareholders along with the Proof of the registered place of business (Ownership documents/ rent or lease agreement) or any bill in relation to electricity /landlord bill / bank statement.
The photos of the respective Directors , shareholders and designated authorities should submit for the clarification and proof of the concerned person.
The PAN card of the respective Directors, shareholders and designated authorities of the company.
Digital signature is the electronic signature format of the Directors / signatory authority for the purpose of e-filing the Register of Companies.
No objection certificate by the owner / landlord must be enclosed.
In case of any Non Resident Indian (NRI) or Foreign National Directors the relevant documents must be notarized and apostilled for certifying documents.
No. Section 8 company can also be incorporated as a company limited by guarantee i.e. without share capital.
The words such as Association, Chamber, Council, foundation, federation, confederation and the like is to be included in the name of section 8 company.
Yes. Section 8 company can carry out micro finance activity, however it is subject other restrictions and compliances.
No. It is not mandatory to have independent director.
If you have any further queries, get our experts’ opinion. For free consultation Contact our Taxteam to resolve all your queries.