Overview of Section 8

Section 8 implies that this type of business entity is affiliated with a non-profit organization. Section 8 comes under the Companies Act 2013 and is a non-profit organization registered to promote science, arts, literature or any knowledge sharing activity for charity. Section 8 is limited to companies formed under the Companies Act, wherein the Government renders these companies with an exclusive license under Section 8 of the Companies Act. In simple words, these are NGOs in the form of companies whose main objective is to help as many people as possible.

The profit earned by Section 8 companies is intended to support the charitable causes the companies are aligned with and are not paid as dividends amongst the members.

Our Taxrepair professionals are well-versed in the procedures of getting the Section 8 company registered. With the help of our experts, we ensure that our clients get it registered seamlessly and smoothly.

Documents Required for Section 8 Company Registration

For Directors/Shareholders

• PAN Card scanned copy (Self-Attested & Mandatory)
• Scanned and self-attested copy (for ID Proof):
• Aadhar card
• Passport
• Voters ID
• Driving license
• any photo identity issued by the Government of India
• Scanned copy of the partners (Not older than two months, preferably the latest one) (used for Address Proof):
• Self-Attested Latest bank statement
• Mobile or telephone bill
• Gas or electricity bill
• DSC: Digital Signature Certificate
• Documents stating the objective and the proposed work of the company
• Company’s financial statement such as the assets and liabilities, the projection of the company for five years and more such documents
• Passport Photograph

For Registered Office

• The latest No-objection Certificate (NOC) scanned copy from the property owner if the registered office is on leased or rented property.
• Scanned copy (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• Mobile or telephone bill
• Gas or electricity bill

Benefits of Section 8 Company Registration

Tax Exemptions

Section 8 company is an entity whose objective is to generate goodwill and work for the betterment of society and not to earn profits; therefore, the Government of India has made the Section 8 companies eligible for numerous tax exemptions. Furthermore, the section 8 company can enjoy the tax benefits under sections 12AA and 80G of the Income Tax Act.

No obligation to affix a title

Other companies like the public co or a private limited have to use “Limited company” or “Pvt. Ltd. Co” as a suffix to their name; section 8 companies are under no obligation to use any title after their name. Thereby, they have the liberty to carry out their work without updating their limited liability status.

Credibility

The credibility of a Section 8 company is better than a Trust or a Society as the compliance requirement of these entities are stringent as the public or private limited companies. On the other hand, society or Trust works with moderate compliance, making it less credible than the companies registered under section 8.

Enjoys Separate Legal Status

Section 8 companies enjoy a separate legal status, i.e., the existence of the company is different from the member of the company. In addition, section 8 has perpetual succession that implies the company will continue to exist even without the founding members.

Timelines of Section 8 Company Registration