Section 8 Company

A Section 8 Company, as per the Companies Act, 2013 in India, is a legal entity formed for promoting charitable or not-for-profit objectives. These organizations are typically established to undertake activities such as promoting art, science, commerce, sports, education, research, social welfare, religion, charity, protection of the environment, or any other similar objective.

What distinguishes a Section 8 Company from other types of companies is its primary focus on social welfare and the prohibition of profit distribution among its members. Any income generated by the organization must be reinvested in furthering its objectives, and no dividends are paid out to its members.

Section 8 Companies enjoy certain benefits and privileges, such as tax exemptions and access to government grants and funding, to support their charitable activities. Additionally, they have limited liability protection, meaning that the personal assets of the members are separate from the liabilities of the organization.

To incorporate a Section 8 Company, the promoters must apply to the Registrar of Companies (ROC) and submit the necessary documents, including the memorandum and articles of association, along with details of the organization’s objectives, governing structure, and board members. Once approved, the company can begin its operations to fulfill its charitable objectives.

Overall, Section 8 Companies play a significant role in promoting social welfare, charitable activities, and community development in India. By providing a legal framework for non-profit organizations, they facilitate philanthropic endeavors and contribute to the betterment of society.

Section 8 Company FAQ's

It is a type of not-for-profit company set up for the promotion of art, science, commerce, charity, sports, education, research, or any other useful activity. These companies are typically formed to benefit a specific community or purpose and are excluded from the provisions of the Companies Act, 2013 that generally apply to other companies.
 
Yes, Section 8 companies can make a profit. Section 8 companies are businesses that receive subsidies from the government to provide services to low-income people. They can also use different ways to gain incomes such as – Investment, Donations, Funding, etc.
 

A Non-Governmental Organization (NGO) is an organization that is independently established and operated, usually with a charitable, educational, religious, or social purpose. NGOs are usually non-profit and do not have a profit motive.
A Section 8 Company is a non-profit organization formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any other such object. Section 8 companies are allowed to generate profit but they must use their profits for the purpose of achieving their goals and not for the benefit of its members.

No, you will not have to be present at our office or appear at any office for the registration of a Section 8 Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.
 
Identity proof and address proof are mandatory for all the proposed Directors of the Section 8 Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
 
 
IndiaFilings.com can incorporate a Section 8 Company for in 20-30 days. The time taken for registration will depend on the submission of relevant documents by the client and the speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.