Section 8 Company is a not-for-profit company incorporated under the Companies Act, 2013, formed with the intention of promoting charitable endeavors such as education, art, science, sports, social welfare, environmental conservation, and others. Section 8 Company does not aim to make profits like other companies; it invests its earnings for pursuing its objectives. It enjoys benefits such as tax exemptions, no minimum capital requirement, and prestige among donors and the government.

We simplify the procedure for Section 8 Company Registration at The Legal Team so that you can focus on your mission. From name reservation to document drafting and filing with the Registrar of Companies (RoC) for obtaining licenses under Section 8, we take care of it all in terms of accuracy and professionalism.

We ensure full adherence to legal formalities and provide fair prices and expert guidance. Our professionals guide you through eligibility, documentation, and post-registration compliance so that your charitable trust or NGO can operate legally as well as smoothly.

Section 8 Company: What is it? The Companies Act of 2013

A Section 8 Company, as per the Companies Act of 2013, is a non-profit-earning organization formed to further charitable objects such as education, art, science, sports, social welfare, protection of the environment, and other activities of public utility. It is not like other companies that aim to earn profits and does not have the right to pay dividends to its members.

Instead of profit-sharing, the profits or income (if any) are to be reinvested again in pursuing the objectives of the organization. These companies are registered with the Central Government and are to strictly follow the compliance norms under the Companies Act.

A Section 8 Company possesses various benefits, like tax benefits, dependability, and limited liability. It is generally opted for by NGOs, trusts, and charitable societies looking for a legal and organized form to follow.

We at The Legal Team assist you through the registration of your Section 8 Company with complete legal support—from documentation to approval from the Ministry of Corporate Affairs. Our experts simplify the process to make it easy and trouble-free so that you can focus on introducing a positive change in society.

Basic Facts of the Section 8 Company Act

• A Section 8 Company is incorporated for charitable purposes and is required to utilize its profits only for the purpose of attaining its aims.

• It gives limited liability protection to members, similar to any other company.

• To incorporate, a license must be secured from the Ministry of Corporate Affairs (MCA), which operates under the Central Government.

• A Section 8 Company can be incorporated without any requirement for minimum capital.

• Let me know if you'd like a more formal, simplified, or creative version.

• It is exempt from tax under Sections 12A and 80G of the Income Tax Act, pending approval.

Advantages of Opening a Section 8 Company in India

• A Section 8 Company is formed for non-profit purposes and is allowed to use its profit only to achieve its purposes.

• It provides limited liability to its members, just like any other company.

• It applies for a Central Government (MCA) license for incorporation.

• There is no minimum capital requirement to form a Section 8 Company.

• It is tax-exempt under Sections 12A and 80G of the Income Tax Act, subject to approval.

Legal Requirements for Section 8 Company Incorporation

In order to create a Section 8 Company in India, one is required to fulfill certain legal stipulations under the Companies Act, 2013. Following are five brief and true points which outline those requirements:

Non-Profit Purpose: The business should be incorporated with the express purpose of stimulating commerce, art, science, education, research, sports, charity, social welfare, religion, or conservation of the environment. Earning a profit cannot be the primary intention.

Application to ROC: The promoters need to go to the Registrar of Companies (ROC) with a detailed memorandum and articles of association. These should clearly state the purpose and non-profit objective of the company.

Government License: A license under Section 8 of the Companies Act is to be obtained from the Central Government (via the ROC). Such a license enables the company to be registered without either the word "Limited" or "Private Limited" in its name.

No Distribution of Profits: The profits or revenues of the company cannot be distributed among its members. Any profit or revenue should be applied solely for the purpose of promoting the objects specified in the company's avowed aims.

Registration of Section 8 Company with The Legal Team

Section 8 Company formation is a great option for persons or institutions interested in promoting causes charitable, educational, religious, or social welfare. The Legal Team makes the formation quick and hassle-free while simplifying the process. Our experts begin by getting to know your objective to ensure it is in accordance with the format of a not-for-profit business in terms of the Companies Act, 2013. We guide you step-by-step from document preparation, such as PAN, Aadhaar, proof of address, and even the preparation of the Memorandum and Articles of Association (MOA & AOA). After your papers are ready, we assist you to select the name of a suitable company and register it with the Ministry of Corporate Affairs (MCA). Next, we apply for the Section 8 license on Form INC-12 and finish the process of incorporation by making the required filings with the Registrar of Companies (ROC). We keep you updated and inform you along the way and ensure on-time completion. With The Legal Team, you have skilled expertise, transparent pricing, and a trouble-free experience in registering your Section 8 Company so that you may keep going about your philanthropic pursuit while we handle the legalities.