Register Section 8 Company

For Promotion of Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity, Protection of Environment

Name should include Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust

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Section 8 Company

Key Highlights

The following have to be proved to the satisfaction of the Central Government that:

  • Its objects include promotion of Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity, Protection of Environment  or any such other object
  • The company after incorporation intends to apply its profits, if any, or other income in promoting such objects only and
  • The company intends to prohibit the payment of any dividend to its members

Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company.

 

 

 

 

Advantage & Benefits of Section 8 Company

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No Minimum Capital Requirement

Section 8 company can be registered without minimum prescribed capital.

Stamp Duty Waived

Stamp duty as required to be paid for registration is waived for section 8 company

Tax Exemption

Income tax is exemption can be availed for section 8 company subject fulfilment of eligibility criteria.

Tax Exemption for Donors

Donors can avail tax exemption on donation to section 8 company.

Separate Legal Entity

Section 8 company is an artificial judicial person distinct from its promoters.
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Perpetual Succession

It means that section 8 company remains in existence even in case of death of all members as the ownership of shares are inherited by legal heirs.
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Transparency

Section 8 company are subjected to strict compliance. Information is easily available in public domain particularly on Ministry of Corporate Affairs website make it transparent for stakeholders.

Reliable, Reputation, Brand Value

Due to strict compliance, transparency& information in public domain, section 8 company place reputation, brand value & reliability in the eyes of stakeholders in comparison to trust or society.

Compare Options

BasisPrivate Limited CompanyLimited Liability PartnershipOne Person CompanyPartnership FirmSole Proprietorship
Business Formation10-15 Days10-15 Days10-15 Days21 Days1-2 Days
Act / LegislationCompanies Act 2013LLP Act 2008Companies Act 2013Partnership Act 1932Not Applicable
Registering AuthorityROC under MCAROC under MCAROC under MCARegistrar of Partnership under Local SDM OfficeNot Applicable
Legal StatusArtificial judicial person with limited liabilitySeparate legal entity with limited liabilityArtificial judicial person with limited liabilityPartners are personally liable with unlimited liabilityPromoter is personally liable with unlimited liability
Members RequiredMinimum - 2
Maximum - 200
Minimum - 2
Maximum - No Limit
Just One Person with one nomineeMinimum - 2
Maximum - 100
Just One Person
Suitable ForStart-upsProfessional firmsIndividual promotersFamily businessesSmall businesses
Taxation BenefitsCertain benefits EfficientBenefitsLowestIndividual slab rate
Compliance ApplicabilityAudit Report, Annual Return, other compliance as per actAnnual Return, Audit report if turnover exceed Rs. 40 lac's in FY or contribution exceeds Rs.25 lacsAudit Report, Annual Return, other compliance as per actAudit Report only as per Income Tax ActAudit Report only as per sec 44AB of Income Tax Act
Investors InclinationMost attractiveNot preferableUnlikelyUnlikelyNo way
Perpetualty
YesYesYesNoNo

Package & Pricing

Documents for Online Registration of Section 8 Company

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PAN of Directors/Subscribers to Memorandum

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ID Proof of Directors/ Subscribers to Memorandum

DL/Voter ID/ Passport
(Any one)
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Address Proof of Directors/ Subscribers to Memorandum

– Latest 2 month
– Telephone/Mobile/Electricity bill/Bank Statement (Any one)
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Photo of Directors/ Subscribers to Memorandum

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Email ID of Directors/Subscribers to Memorandum

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Mobile Number of Directors/Subscribers to Memorandum

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Place of Business

Address Proof with NOC (Ownership/ Rent Agreement/ Lease deed/ Consent Letter
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Electricity bill of place of business

Latest 2 months
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Projected financials for 3 years

FAQ

How many members/shareholders are required to start a section 8 company?

Section 8 company can be registered with a minimum of 2 members.

How many directors are required to start a section 8 company?

Section 8 company can be registered with a minimum of 2 members. At least one director should be resident in India.,p>

Can members and directors be same in section company?

Yes, members and directors can be same in section 8 company

What is difference between section 8 company, trust and society?

Trust, society or Section 8 company all are formed to advance non-profit activities for upliftment of public and society at large with the difference to registering authority, organisation status and laws governing that organisation. For example, Section 8 company are governed by Companies Act, 2013 while societies are governed by Societies Act, 1860.

Can members share profits earned by section 8 company?

Section 8 company cant declare a dividend and share its profit with members. Any income generated by section 8 company is used for the advancement of its object or similar activities.