Overview of Section 8 Company Registration

A Non-profit making Company (Section 8 Company) is a Company that:
(a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection
of environment or any such other object;
(b) intends to apply its profits, if any, or other income in promoting its objects; and
(c) intends to prohibit the payment of any dividend to its members.

A non-profit organisation can register as a Section 8 Company under the Companies Act of 2013, which is equivalent to Section 25 under the Companies Act of 1956. It’s also possible to register it as a Trust or a Society. A Section 8 corporation can be formed for the purpose of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or any other purpose, as long as it intends to use its profits or other income to further its objectives and prohibits the payment of dividends to its members. We are always available at Registration Arena to assist you in understanding how to register a Section 8 corporation. Section 8 company registration is available in all major cities in India, including Hyderabad, Mumbai, and New Delhi, as well as Chennai, Kolkata, and other Indian cities, through Registration Arena.

Advantages of Section 8 Company Registration

  1. Tax Exemption: Several tax exemptions are available to Section 8 companies, specifically to donors who contribute to Section 8 companies and can claim the tax exemption against the donation they made.
  2. No minimum capital requirement: Unlike other entities such as public limited companies, there is no set minimum capital requirement for a section 8 corporation, but the capital structure can be changed at any time as needed for the company’s growth.
  3. No stamp duty payable: A section 8 corporation is exempt from paying stamp duty on registration, as is the case with other structures such as private limited or public limited companies.
  4. Separate Legal entity: A  Section 8 Company, like other firms’ structures, has its own identity and legal status independent from its members. A Section 8 Corporation also exists indefinitely.
  5. Credible: In comparison to any other non-profit organization structure, such as a Trust or Society, a Section 8 Company has more credibility. The central government has granted it a license. It contains stricter rules, such as no changes to the MOA or AOA can be made at any time or in any situation in a Section 8 company. In comparison to other legal structures, a section 8 corporation has a more trustworthy reputation due to its tight operational compliances.
  6. No title required: In contrast to the requirements for a private limited or public limited company’s name, a section 8 company’s name does not require the use of a suffix.

Minimum Requirements For Section 8 Company Registration

    • Minimum 2 Shareholders
    • Minimum 2 Directors are required
    • At least one Director should be an Indian Resident
    • Minimum 2 Rupees Share Capital
    • DPIN for all the Directors

Documents Required For Section 8 Company Registration

Identity and Address Proof: All directors and shareholders of the incorporated firm will need to provide proof of identity and address. A PAN card is required in the case of an Indian national. Foreign nationals are required to present an apostilled or notarized copy of their passport. All of the documents you send should be legal. The evidence of residence documentation, such as a bank statement or an electric bill, must be less than two months old.

Registered Office Proof: A registered office in India is required for all businesses. A recent copy of an electricity bill, gas bill, water bill, or telephone bill must be given to confirm admission to the registered office. A letter from the landlord granting permission to use the office as the company’s registered office should be submitted along with the rental agreement, utility bill, or sale title.

List of documents to be submitted by the Director and the Shareholders:

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter’s ID/Passport/Driver’s License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned passport-sized photograph
  • Specimen signature (blank document with signature [directors only])
  • Note: The first three documents must be self-attested by one of the directors. All documents must be notarized (if currently in India or a non-Commonwealth country) or apostilled in the case of foreign nationals and NRIs (if in a Commonwealth country).