What is Section 8 Company ?

A Section 8 Company in India is also commonly referred to as a Non-Profit Company. This designation highlights its purpose, which is to promote fields such as art, science, commerce, research, education, charity, social welfare, religion, environmental protection, or other similar objectives. The primary characteristic of a Section 8 Company is that it operates without the intention of earning profits, and any profits or income earned are reinvested back into the company's activities to further its objectives.

Benefits

  • Tax Exemptions: Section 8 Companies are eligible for various tax benefits and exemptions under the Income Tax Act.
  • Non-Profit Focus: The structure supports organizations focused on social, educational, or charitable activities without profit distribution.
  • Credibility : Being recognized as a non-profit entity can enhance credibility and attract donations and grants.
  • Legal Status : Provides a formal legal framework for operating a non-profit organization with the benefits of limited liability.

Process

01

Name Selection

Choose a unique name for the Section 8 Company that reflects its non-profit objectives.

02

Drafting Documents

Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives and rules.

03

Applying for DIN

Obtain Director Identification Numbers (DIN) for all directors.

04

Obtaining DSC

Acquire Digital Signature Certificates (DSC) for the directors for online filing.

05

Filing Application

Submit the application for registration along with the required documents to the Registrar of Companies (ROC).

06

Approval

Await the ROC's approval and the issuance of the Certificate of Incorporation.

Documents Required

Identity Proof of Directors
  • PAN Card: Mandatory for Indian nationals.
  • Passport: Mandatory for foreign nationals.
Address Proof of Directors
  • Aadhaar Card
  • Voter ID Card
  • Driving License:
  • Bank Statement : Should be recent (not older than 2 months).
  • Utility Bill : Electricity bill, water bill, or gas bill. Must be recent (not older than 2 months).
Additional Documents for Foreign Nationals
  • Residential Address Proof : Recent bank statement or utility bill as proof of residential address.
  • Apostille/Notarization : Documents provided by foreign nationals must be apostilled or notarized in their home country.
Additional Documents
  • Photographs : Recent passport-sized photographs of all directors.
  • Digital Signature Certificate (DSC) : Required for signing electronic documents.
  • Director Identification Number (DIN) : Mandatory for all directors, obtainable during the incorporation process if not already available.

Our Support?

  • Incorporation : Helping with the formation and registration of a Section 8 Company.
  • Compliance : Ensuring compliance with regulatory requirements and maintaining necessary records.
  • Taxation : Advising on tax benefits and handling tax-related matters.
  • Financial Management : Assisting with financial planning, auditing, and reporting.
  • Legal Support : Offering legal guidance and support for various operations and activities.

Frequently Asked Questions

Section 8 Companies are eligible for various tax exemptions and benefits under the Income Tax Act.

No, any income generated must be reinvested back into the company’s activities and cannot be distributed as profits.

The time frame can vary but typically takes a few weeks from the submission of the application to the receipt of the Certificate of Incorporation.