A Section 8 Company is a non-profit organization registered under Section 8 of the Companies Act, 2013 for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, or any other useful object. Unlike NGOs or Trusts, Section 8 Companies have a more structured governance framework and are regulated by the Ministry of Corporate Affairs (MCA). These companies are granted special privileges like exemption from using "Limited" or "Private Limited" in their name and enjoy various tax benefits under the Income Tax Act.
" Section 8 Companies provide the perfect blend of non-profit objectives with corporate governance, offering credibility and transparency for charitable activities. "
Section 8 Companies can receive CSR funds from corporates, are eligible for 80G and 12A registration, and can accept foreign contributions after obtaining FCRA registration. Our expert team provides end-to-end assistance in Section 8 Company registration, from name approval to obtaining the license and incorporation certificate. We also help with obtaining subsequent registrations like 12A, 80G, and FCRA to maximize your organization's impact.
A Section 8 Company is a non-profit organization registered under Section 8 of the Companies Act, 2013. It is formed for promoting charitable objectives like education, art, science, sports, social welfare, religion, charity, or protection of environment. Unlike other companies, Section 8 Companies cannot distribute profits to members and must use income solely for charitable purposes.
Section 8 Companies have better governance structure, nationwide recognition, higher credibility among donors and government, no stamp duty on registration, exemption from using 'Limited' in name, and are eligible to receive CSR funds. They also have more flexibility in operations and are governed by a well-defined legal framework under Companies Act.
For a Private Section 8 Company, minimum 2 directors and 2 members are required. For a Public Section 8 Company, minimum 3 directors and 7 members are needed. There is no minimum capital requirement, and directors must have valid DIN (Director Identification Number) and DSC (Digital Signature Certificate).
Yes, Section 8 Companies can receive foreign donations after obtaining FCRA (Foreign Contribution Regulation Act) registration from the Ministry of Home Affairs. FCRA registration requires the company to be operational for at least 3 years with a proven track record of utilizing funds for charitable purposes.
The registration process typically takes 25-30 working days from the date of filing application. This includes name approval (2-3 days), license application processing (15-20 days), and incorporation (5-7 days). The timeline may vary based on query resolution and document verification by the Registrar of Companies.
