
Section 8 Company Registration
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Table of Content
- Section 8 Company Registration - An Overview
- Eligibility Of Section 8 Company Registration:
- FAQs on Section 8 Company Registration:

Section 8 Company Registration - An Overview
Eligibility Of Section 8 Company Registration:
- Non-Profit Purpose: The company must be established with the intention to promote charitable, educational, social, or other activities beneficial to society. The primary objective should not be for profit-making.
- Minimum Members: A Section 8 Company requires at least two members in case of a private company, and seven members for a public company.
- Directors: The company must have at least two directors (for a private company) or three directors (for a public company). The directors can be individuals or bodies corporate.
- Registered Office: The company must have a registered office address in India.
- Income Criteria: The company should not be formed for the purpose of earning profits. It should reinvest any profits generated for promoting the objectives stated in its memorandum of association (MOA).
- No Distribution of Profits: The profits or income of the company cannot be distributed among its members, directors, or other individuals. Any surplus generated must be used exclusively to further the company’s objectives.
- Incorporation Purpose: The company should not have objectives that conflict with public policy or law.
- Filing Application: An application must be submitted to the Ministry of Corporate Affairs (MCA) for approval, along with the necessary documents, including a detailed memorandum and articles of association (MOA and AOA).
- Financial Documents: The company should present documents like the projected balance sheet, income & expenditure, and sources of income. These help demonstrate that it can operate on a non-profit basis.
FAQs on Section 8 Company Registration
• Legal Structure: A Section 8 Company is registered under the Ministry of Corporate Affairs (MCA), while Trusts and Societies are governed by state authorities.
• Accountability: Section 8 Companies follow strict governance and legal procedures, enhancing transparency. Trusts and Societies may not have as formal a governance structure.
• Credibility: Due to its formal registration under the Companies Act, a Section 8 Company carries more credibility, especially with stakeholders and donors.
• Minimum Directors: Two directors (for a private company) or three directors (for a public company).
• Minimum Members: Two members (for a private company) or seven members (for a public company).
• Non-Profit Objective: The company must be formed with the objective of promoting social welfare, education, charity, etc., and not for profit-making.
• Section 8 Companies enjoy various tax exemptions under the Income Tax Act, including:
o 80G: Tax deductions for donations made to the company.
o 12A: Income tax exemption for the company’s income, provided it operates solely for charitable purposes.