A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, formed to promote charitable activities such as education, social welfare, arts, science, or environmental protection. Its profits are reinvested to achieve its objectives and are not distributed as dividends.
Any individual or group of individuals, including NGOs, trusts, and societies, can register a Section 8 Company provided the objective is charitable. Foreign nationals may register subject to necessary approvals.
Section 8 Companies enjoy tax exemptions, limited liability protection, higher legal credibility, eligibility for government grants, CSR funding, and increased donor confidence.
The company must have a non-profit objective, comply with the Companies Act, 2013, reinvest profits into its mission, and must not distribute dividends to its members.
Documents include PAN and Aadhaar of directors, address proof, DSC, DIN, company name approval, Memorandum of Association (MOA), Articles of Association (AOA), and projected financial statements.
Registration costs depend on government fees and professional charges. On average, the cost ranges between ₹5,000 and ₹15,000 depending on services and location.
The registration process usually takes 25 to 40 days, including name approval, document verification, MOA and AOA approval, and issuance of the Certificate of Incorporation.
Yes, Section 8 Companies can raise funds through grants, CSR contributions, and foreign donations with FCRA approval, and may also generate revenue through permitted activities.
Yes, conversion is allowed with prior approval from the Regional Director of the Ministry of Corporate Affairs (MCA) and necessary amendments to MOA and AOA.
Annual compliances include filing financial statements, income tax returns, conducting board meetings, maintaining statutory records, and complying with ROC and MCA regulations.
GST registration is required if the company provides taxable goods or services and crosses the GST threshold. Donations and grants alone generally do not attract GST.
Yes, directors can receive reasonable remuneration for professional services rendered, but profits cannot be distributed as dividends.
Non-compliance may result in penalties, fines, cancellation of registration, and legal action against directors for violation of MCA or income tax laws.
Yes, foreign nationals and NRIs can register a Section 8 Company, but FCRA approval is required to receive foreign donations.
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