The 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 and social welfare. To incorporate a Section 8 Company, at least two directors are required. For the formation of section 8 company here is no requirement of minimum paid-up capital. In India, non-profit organizations can be registered under the Registrar of societies or as Non-profit companies under the Section 8 Company of the Act 2013. The profits of this company if any are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders. A Section 8 Company is same as Section 25 Company under old Companies Act 1956. As per new Companies Act 2013 section 25 has now become section 8.”

Documents Required under Indian companies act for Section 8 Company (All self-attested soft copy).

• One colour size passport size photo of all directors and members.
• Self-attested signed and dated copy of PAN card of all directors and members.
• Self- Attested signed and dated Proof of Identity such as ID, Passport, Aadhar Card, Driving License.
• Business address proof out of any one Electricity Bill, Telephone Bill, Tax Bill, Property, Gas Bill.
• If own (sell deed) or Rented Business (Rent Agreement Copy).
• Purpose company name at least 2 or 3.
• Company main object or service or project details.

Benefit of formation of section 8 company.

If your company is registered as a Section 8 company under Sub-Section (12AA) of the Income Tax Act, you can claim a 100% tax exemption on profits because such profits are used for charitable purposes.

There is no minimum capital requirement for section 8 entities, unlike other companies such as the public limited company. But these entities may alter their capital structure as needed to accommodate growth.

A section 8 company is exempt from paying stamp duty for registration, which is levied on other kinds of companies such as public limited companies and private limited companies.

A section 8 company has a legal identity of its own, like other registered companies. It also has the ability to exist independently of its members.

Process for formation of section 8 company.

Step 1 filing application for issue of digital signature in the name of directors.

Step 2 Preparation of attachment required for section 8 company such as INC-9, Dir-2, NOC.

Step 3 Filing for application for name reservation in e-form Spice+ part A.

Step 4 Drafting and vetting of Memorandum and Article of Association for with object of premotion of Arts, Commerce and Science.

Step 5 Filing for application for the registration with ROC in e-form Spice+ Part B.

Step 6 Issue of certificate of incorporation (COI) by Ministry of Corporate Affairs.

Step 7 Issue of license to use name of company without limited or private limited.

Step 7 Filing of application for allotment of PAN and TAN number.