A Section-8 Company is a not-for-profit organization registered under the Companies Act, 2013. Its primary purpose is to promote charitable objectives such as social welfare, education, art, or the environment. CAPLUS, specializes in guiding clients through the process of registering a Section-8 Company efficiently and compliantly.
What is a Section-8 Company?
A Section-8 Company is structured to encourage non-profit initiatives. It enjoys special privileges under the Companies Act, including exemptions from certain procedural requirements. Unlike other company types, profits generated by a Section-8 Company are reinvested to achieve its goals rather than distributed as dividends.
Key Features of a Section-8 Company
Purpose-Driven
Focused on promoting charity, education, health, or other societal benefits.
Limited Liability
Members have limited liability based on their contribution.
No Dividend Distribution
Profits are reinvested for the organization’s objectives.
Tax Benefits
Eligible for various tax exemptions under Indian tax laws.
Section-8 Companies can avail of tax benefits under the Income Tax Act, including exemptions on donations received.
A Section-8 Company holds higher credibility in comparison to other types of non-profit organizations like Trusts and Societies.
It enjoys relaxed compliance requirements in areas such as board meetings and reporting.
The company continues to exist despite changes in its members or directors.
Many donors prefer Section-8 Companies because of their transparent legal structure.
At least two members are required to form a Section-8 Company.
The objective must be charitable or non-profit.
Minimum two directors for private and three for public companies.
At least one director must be an Indian resident.
The name must not contain “Private Limited” or “Limited.”
Step-by-Step Process of Section-8 Company Registration
Directors must obtain a Digital Signature Certificate (DSC) and Director Identification Number (DIN).
File RUN (Reserve Unique Name) form to reserve the company’s name.
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) aligned with the objectives.
Submit Form INC-12 to obtain a license under Section-8.
File Form INC-7 along with required documents like MOA, AOA, PAN, and TAN.
Apply for the company’s PAN and TAN to finalize the registration process.
CAPLUS ensures a seamless experience by managing these steps professionally, allowing you to focus on your mission.
PAN Card
Aadhar Card or Passport
Passport-sized photographs
Address proof (Utility Bill or Rent Agreement)
Utility Bill
NOC from the property owner
MOA and AOA drafts
Income and expenditure statement (projected)
Why Choose CAPLUS for Section-8 Company Registration?
CAPLUS, specializes in company registrations with a focus on compliance and transparency. Here’s why CAPLUS is your best choice:
Expert Guidance: From documentation to filing, our experts manage the entire process.
Quick Turnaround: We ensure timely submission and registration.
Affordable Pricing: Tailored solutions that fit your budget.
Customer Support: Dedicated support to address all your queries.
What activities can a Section-8 Company undertake?
Can a Section-8 Company make profits?
Is FCRA registration mandatory for foreign donations?
Can a Section-8 Company be converted into another company type?
What is the minimum capital requirement for a Section-8 Company?
How long does it take to register a Section-8 Company with CAPLUS?