Section 8 Company
Section 8 Company Registration
A Section 8 Company is a non-profit organization (NPO) registered under the Companies Act, 2013 for promoting charitable objectives such as education, arts, science, social welfare, religion, or environmental protection. Unlike other business structures, a Section 8 Company does not distribute profits to its members but reinvests them into achieving its mission.
Compliances for Section 8 Company
Annual Filing with MCA – AOC-4 & MGT-7 submission with the Ministry of Corporate Affairs.
Income Tax Return Filing (ITR-6) – Annual submission to the Income Tax Department.
Statutory Audit – Mandatory audit by a Chartered Accountant.
Board Meetings & AGM – At least two board meetings per year and Annual General Meeting.
GST Registration & Filing – Required if the company is engaged in taxable services and crosses the threshold limit.
CSR Compliance – Must utilize profits only for social objectives.
Renewal of Licenses – If availing 80G & 12A tax exemptions, periodic renewal is needed.
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GST Registration & Filing
Advantages of Section 8 Company Registration
Tax Benefits – Eligible for 80G & 12A registration, providing tax exemptions to donors and the company.
Legal Recognition – A Section 8 Company enjoys more credibility than Trusts and Societies.
No Minimum Capital Requirement – Can be started with any amount of capital.
Limited Liability Protection – Members’ personal assets remain protected.
Separate Legal Identity – Exists independently from its founders and can own property.
Exemptions from Stamp Duty – Government waivers on stamp duty charges for incorporation.
No Title Requirement – Does not need to add “Limited” or “Private Limited” in its name.
Documentation Required for Section 8 Company Registration
PAN Card of Directors & Promoters
Aadhar Card, Passport, or Voter ID (Identity Proof)
Latest Utility Bill (Address Proof) of Directors
Registered Office Address Proof (Rent Agreement & Electricity Bill)
Passport-size Photographs of Directors & Promoters
Digital Signature Certificate (DSC) of Directors
Director Identification Number (DIN) of Directors
Memorandum of Association (MoA) & Articles of Association (AoA)
Income & Expenditure Projection for 3 Years
Declaration of Non-Profit Objective (INC-14 & INC-15)
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Frequently Asked Questions (FAQs)
Who can start a Section 8 Company?
Any individual, group, or organization can register a Section 8 Company for charitable or social welfare purposes.
Can a Section 8 Company earn a profit?
Yes, it can generate revenue but must reinvest all earnings toward its social objectives.
Is GST applicable to Section 8 Companies?
Yes, if the organization provides taxable services or goods, GST registration and filing are required.
Can a Section 8 Company convert into a Private Limited Company?
Yes, but it requires government approval and compliance with conversion rules.
What is the difference between a Section 8 Company and an NGO?
A Section 8 Company is a structured corporate entity, while an NGO can be a trust, society, or a company under Section 8.