Section 8 Company

An association which is registered under section 8 of the Companies Act, 2013 is known as Not for profit organisation. It has the objects to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.

It prohibits the payment of dividends to its members. The profits, if any, are applied in promoting its objects. The name of the company can be incorporated without using the word “Limited†or “Private Limited†as the case may be. The Company is exempt from the requirement of minimum paid up capital. A One-person Company cannot be formed as Section-8 Company.

Benefits of Incorporation of Section 8 Company

Tax Benefits

Section 8 companies are provided many tax benefits. It is a not-for-profit organization and enjoy exemption from Income Tax provisions.

Separate Legal Entity

Section 8 company will be considered as a separate legal entity where the assets & liabilities of the business and members are not same. Section 8 company will be considered to be a legal person and also holds the Right to Sue a third party in case of any dispute or default arises.

Zero Stamp Duty

There is no stamp duty to be paid for section 8 company registration.

No Minimum Capital

You can start up your section 8 company with zero paid up capital. Now capital amount cannot stop you from starting your non-profit organization.

Documents required for Incorporation of Section 8 Company

  • ID Proof:Aadhar / Voter ID / Driving licence / Passport of Directors and Shareholders.
  • Address Proof and Utility Bill:The Address proof of the proprietor 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.
  • Photos:The photos of the respective Directors , shareholders and designated authorities should submit for the clarification and proof of the concerned person.
  • PAN:The PAN card of the respective Directors, shareholders and designated authorities of the company.
  • DSC:Digital signature is the electronic signature format of the Directors / signatory authority for the purpose of e-filing the Register of Companies.
  • NOC (Owner/Landlord):No objection certificate by the owner / landlord must be enclosed.
  • Additional Documents:In case of any Non Resident Indian (NRI) or Foreign National Directors the relevant documents must be notarized and apostilled for certifying documents.