A Section 8 Company is a specialized non-profit organization registered under Section 8 of the Companies Act, 2013 (previously Section 25 of Companies Act, 1956). These companies are established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other useful object, with profits and income applied solely for promoting its objectives rather than distributed as dividends.
Key Features of Section 8 Companies
- Non-profit purpose with charitable or social objectives
- Prohibition on dividend distribution to members
- Surplus funds must be used for promoting company objectives
- “Limited” or “Private Limited” suffix not required in name
- Perpetual succession and separate legal entity status
- Tax exemptions under various sections of Income Tax Act
- Relaxed regulatory compliance compared to traditional companies
Benefits of Section 8 Company Registration
- Legal Entity Status
- Limited Liability Protection
- Tax Benefits and Exemptions
- Enhanced Credibility
- Fundraising Advantages
Documents Required for Section 8 Registration
- PAN Card
- Aadhaar Card
- Passport-sized Photographs
- Proof of Address (Utility Bill, Bank Statement)
- Proof of Registered Office Address
- Rent Agreement or
- Ownership Deed
- Utility Bill
- No Objection Certificate (NOC) from Property Owner