Section 8 Company

A Section 8 Company, under the Companies Act, 2013 is referred to as a Section 25 Company under the Companies Act, 1956. This is a not-for-profit organization with an aim of promoting activities of art, science, literature, education, or research. Section 8 Companies usually have a focus on activities for public welfare or charitable purposes.

Unlike a normal company, a Section 8 Company cannot pay profits or distribute dividends to its members. The profits must be invested back to achieve its aims. Similar to a trust or society, but being a registered Section 8 Company, it is with the Central Government. However, a trust or a society is registered under State Government laws.

Key Features of a Section 8 Company

• Non-Profit Nature: The revenue generated is strictly for charitable purposes; no dividend can be distributed to members.
• Central Regulation: It is registered under Section 8 of the Companies Act, 2013, and is regulated by the Central Government.
• Restrictions on Amalgamation: It can amalgamate only with another Section 8 Company having the same objectives.
• Separate Legal Identity: It functions as a separate legal entity from its members.
• No Minimum Capital Requirement: It has a flexible structure with no minimum capital requirement.

Advantages of Registering a Section 8 Company

1. Tax Exemption: A Section 8 company enjoys tax exemptions under Sections 12A and 80G of the Income Tax Act.
2. Higher Authenticity: Central Government rules have the element of more trustworthiness
3. Liability Limitation: Protects the personal wealth of its members and shareholders
4. Professional Management: Compulsory requirement of MOA and AOA ensures structured management.

How to Register a Section 8 Company Through Jsr Taxes Mentor

Registering a Section 8 Company with JSR Taxes Mentor is straightforward and time-consuming, and there are a few steps for it.

• Apply for Digital Signature Certificate
  • Digital signatures are a mandatory requirement for all directors and shareholders.
• Apply for Director Identification Number
  • Apply for DIN of all directors in compliance with the statutory requirement.
• Name Reservation and Incorporation
  • Submit an application to get the name approved via the RUN service (Reserve Unique Name).
  • File SPICe+ Form for incorporation, along with Memorandum and Articles of Association.
• Post-Incorporation Compliance
  • Obtain PAN, TAN, ESIC, and EPF registrations.
  • Open a bank account to start the business.

Documents Required for Section 8 Company Registration

All documents should be clear, signed, and scanned copies.

For Promoters and Shareholders

• Identity Proof: PAN card.
• Address Proof: Aadhaar Card, Passport, or Voter ID.
• Photograph: Recent passport-sized photo.
• Bank Statement/Utility Bill: Latest statement (not older than two months).

For Registered Office Address

• Proof of Address: Recent utility bill, electricity, gas, telephone, or mobile bill.
• Rent Agreement (if office is rented).
• No Objection Certificate (NOC) from the property owner.

Further Information Needed

• Occupation and Area of Occupation: Information regarding the applicant’s professional experience.
• Educational Qualification: Highest qualification received.
• Contact Information: Applicant’s email ID and mobile number.
• Company Information:
  • Proposed name (suggest two options).
  • Authorized and paid-up capital.
  • Company’s main objectives.
  • % of shares to be issued to subscribers.
  • Police station address for the location of the registered office.