The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.

The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.

To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company.

In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.

The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders.

Benefits of Section 8 Company Registration

• A separate legal identity. Section 8 Company is a distinct legal entity from its members.
• No stamp duty.
• No minimum capital requirement.
• Need for CARO.
• Tax benefits.
• Credibility.
• Exemption to donors.

Documents Requirement for the Registration of Section 8 Company

• Digital Signature Certificate(class 3).
• Passport Size Photographs of members.
• Bank Pass Book of members first page with name and address.
• Members’ Id Proof such as Aadhaar Card, Passport, Voter Id.
• Details of Director (When the Members Are Other Companies/LLPs).
• Address Evidence like utility bills,Electricity bills etc.

Annual Compliance Under Section 8 Company

• Appointment of an auditor.
• Maintenance of Statutory Registers.
• Calling board meet.
• Statutory Audit.
• GM notice.
• Calling AGM.
• Board Reports..
• Making of Financials Statement of the Company.
• Tax returns.
• Tax audit.
• Filing Financial Statements.
• Annual Return Filing.
• DIN KYC.