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What is Non-profit making Company(Section 8 Company)?

A Non-profit making Company (Section 8 Company) is a Company which:
(a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection
of environment or any such other object;
(b) intends to apply its profits, if any, or other income in promoting its objects; and
(c) intends to prohibit the payment of any dividend to its members.

A Non-profit organisation can be registered as a Section 8 Company of the Companies Act, 2013 corresponding to section 25 of the Companies Act, 1956. It can also be registered as Trust or a Society. Section 8 company can be incorporated for promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided it intends to apply its profits, if any, or other income in promoting its objects and intends to prohibit the payment of any dividend to its members. At Registration Arena, we are continuously available to help you understand how to register a Section 8 company. Section 8 Company Registration in India can be done through Registration Arena in all major cities including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.

Advantages of Section 8 Company Registration

section 8 company

5) Credible
A Section 8 Company has more credibility as compared to any other Non-profit organization structure be it a Trust or Society. As it is a licensed by the central government. It has more stringent regulations such as no change in MOA and AOA can be done at any stage or situation in a Section 8 Company. A section 8 company due its strict compliances as regard to functioning has a more reliable image in comparison to other legal structures.

6) No title required
Unlike the names requirements of the private limited or a public limited company, a section 8 company does not require to use a suffix next to its name.

1) Tax Exemption
Numerous Tax exemptions are provided to Section 8 Company, specifically to the donors who are contributing to Section 8 Company, they can claim the Tax exemption against the donation they made to a Section 8 company.

2) No minimum capital requirement
There is no prescribed limit over section 8 company for the minimum capital requirement unlike other entities such as public limited, but the capital structure can be altered at any stage as the required for the growth of the section 8 company.

3) No stamp duty payable
A section 8 Company is exempted for the payment of stamp duty applicable for registration as applicable in case of other structures such as private limited or a public limited company.

4) Separate Legal entity
A Section 8 Company also holds its own identity like other companies structures, and has its own separate legal standing from its member. A Section 8 Company also has a perpetual existence.

Minimum Requirements For Section 8 Company Registration

Minimum 2 Shareholders
Minimum 2 Directors are required
Atleast one Director should be an Indian Resident
Minimum 2 Rupees Share Capital
DPIN for all the Directors

What Is Included In Our Package?

Procedure For Section 8 Company Registration