Quick Summary
Section 8 Company is a special type of company registered for charitable or not-for-profit purposes with tax exemptions and no minimum capital requirement.
Section 8 Company is named after Section 8 of the Companies Act, 2013. It is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided the profits, if any, are applied for promoting only the objects of the company and no dividend is paid to its members.
Key Features
- No minimum capital requirement
- Tax exemptions under Income Tax Act
- No stamp duty on registration
- Can be formed as Private or Public Limited
- Name can exclude "Limited" or "Private Limited"
- CSR funding eligible
Benefits
- Separate legal entity
- Tax benefits and exemptions
- Credibility and recognition
- Can receive donations and grants
- Perpetual succession
Registration Process
- Apply for name approval (Form RUN)
- Apply for license (Form INC-12)
- File incorporation documents (SPICe+)
- Obtain Section 8 license from ROC
Key Points
- For charitable/not-for-profit purposes
- No minimum capital required
- Profits cannot be distributed as dividend
- Tax exemptions available
- Central Government license required