Sec. 8 Company in India, a Corporate Entity with the characteristics of a Non-profit (Non-governmental) Organization is called a Section 8 Company. The Companies Act, 2013 governs the Section 8 Company (previously known as Section 25 Company in the Old Companies Act, 1956). The main object of Section 8 Companies is to promote charitable activities, art, science, education, commerce, environment, research, social welfare, sports, etc. The main focus of the company is not to earn a profit but rather to promote the areas and culture where the whole society benefits

The formation of a Section 8 Company is quick and easy. Incorporation can be done by a minimum of two members and two directors, out of which one must be an Indian citizen. Name of the Section 8 Company Must include charitable or social welfare word like Foundation, Association, Federation, Chamber, Forum, Council, Electoral Trust etc. NGO registrations are increasing day by day as the economy grows, leading to parallel growth in charitable and promotional activities. A Section 8 Company is a form where the utilization of funds is done for the welfare of society, and any surplus will be reallocated for social welfare only. From a taxation point of view, the profit of a Section 8 company is exempted from tax on the utilized amount for charitable purposes under Section 12AA of The Income Tax Act.

Hence, if you are planning to create a new entity with the objective of promotion of education, sports, research, religious, or charitable motives, Section 8 Company Incorporation is the best suitable format for your NGO.

Key Points:

Non-Profit Motive: Profits are used solely to promote the company's objectives and cannot be distributed as dividends.

No Minimum Capital Requirement: Unlike other companies, no specific minimum paid-up capital is required.

Separate Legal Entity: It has a distinct identity from its members, allowing it to hold property and sue or be sued.

Limited Liability: Members have limited liability for company debts.

Tax Exemptions: Eligible for income tax exemptions under Section 12A and 80G of the Income Tax Act.

Name Flexibility: The company is not required to use "Limited" or "Private Limited" in its name

Documents Required for Sec. 8 Company

• Aadhar Card or Voter ID Card or Passport or Driving License (of Two Directors)
• PAN Card (of Two Directors/Member)
• Photo (of Two Director/Member)
• Personal Saving Bank Account Statement/Passbook of Member & Director
• Mobile Number and Email Id
• Proposed Section 8 Company Office Address – Latest Utility Bill (Light Bill/Telephone Bill)

Minimum Requirement to be fulfilled for Sec 8 Company NGO Registration

• A minimum of two Person (members/shareholders) is required.
• Two directors required for Section 8 Company.
• At least one director of the Section 8 Company must be an Indian Citizen.
• Name of the Section 8 Company Must include word represent charitable nature Eg. Association, Foundation, Federation, Chamber, Electoral Trust, Council, Forum, etc.
• Members or directors cannot draw any remuneration. Also, the distribution of profit to members is prohibited.
• It is mandatory to do statutory Audit, ROC Filing, Book Keeping etc
• Section 8 Co. Registration
• MoA and AoA of Section 8 Company
• Government Fees
• Permanent Account Number (PAN)
• Tax Account Number (TAN)
• Director Identification Numbers
• Digital Signatures
• INC-20A Commencement of Activity
• ADT-1 Auditor Appointment

Package: 18,000/-

Package includes: