When a company has motive of promoting arts, commerce, education, sports, science, research, social welfare, religion, charity, protection of environment and intends to use its profits for the promotion of these objectives, it is referred to as Section 8 Company when registered as a Non-Profit Organisation (NPO). The income/profits of NPO can never be used for paying out dividends to the members of the company and have to be used only for the promotion of charitable objectives stated by the company. These companies are governed by the central government and any non-compliance to fulfil the responsibilities stated by the Central Government may lead to the winding up of the company on the orders of the government. Strict legal action will also be taken against all the members of the company.

• Distinct Legal Entity: The company exists separately from its members, providing limited liability protection.
• Perpetual Succession: The company's existence is not affected by changes in membership.
• No Minimum Capital Requirement: Flexibility to structure capital based on needs.
• Tax Benefits: Eligibility for various tax exemptions under Sections 12A and 80G of the Income Tax Act, 1961.
• Enhanced Credibility: Recognized legal structure increases trust among donors and stakeholders.
• Stamp Duty Exemption: Exemption from stamp duty on MoA and AoA during registration.
• Donor Tax Exemptions: Donors receive tax benefits under Sections 12A and 80G.

• An Individual, HUF, limited Company are all eligible to start a Section- 8 company.
• The shareholders or Directors of the company should fulfil all the requirements and compliances according to the rules and regulations of Section 8 company incorporation under the Act.
• The objective must be promotion of commerce, education, sports, science, research, social welfare, religion, charity, protection of environment and the profits/incomes of the company should go towards the objectives of the company only.
• No profit can be distributed as dividends among the members and directors of the company. 

• Proof of Registered Office Address
• Notarized rental agreement
• No-objection certificate from the owner (if rented)
• Sale deed (if property is owned).
• Director Identification Number
• Digital Signature Certificate
• Memorandum of Association
• Articles of Association
• Passport Size Photographs
• PAN Card of all shareholders
• Members’ Id Proofs ( Aadhar Card, Passport, Voter Id)
• Details of Directors

• Appointment of an Auditor
• Conducting a minimum of two Board Meetings annually
• Maintenance of Books of Accounts
• Annual Filing of Financial Statements and Returns (Forms AOC-4 and MGT-7)
• Income Tax Return Filing
• Compliance with registrations under Sections 12A and 80G for tax exemptions

Note: If a company fails in complying with the provisions of the Act, the licence can be revoked and the company will be punishable with a fine not less than Rs.10 lakh which may be extended up to Rs.1 crore. The Directors and the members of the company in default will be punishable with a fine not less than Rs. 25,000 which may be extended up to Rs. 25 lakh or both.

Our experts provide end-to-end support for Section 8 Company Registration, ensuring complete compliance with stringent government regulations. With our expert guidance, you can establish a credible, transparent non-profit organization focused on achieving its charitable objectives.