Section 8 Company - Airawat Consultancy Services

Section 8 Company

A Section 8 Company is a non-profit organization established with the objective of promoting charitable activities, arts, science, education, sports, and other social causes. Unlike other companies, its profits are solely utilized to further these objectives and cannot be distributed among its members. Understanding the concept of a Section 8 Company, along with the required documentation and the incorporation process, is crucial for those looking to establish or engage with such an organization.

Benefits

Benefits of Opening a Section 8 Company in India

  • 1

    Minimum Capital Requirement

    Flexible capital structure without any no minimum requirement.

  • 2

    Title Restriction

    Freedom to choose a name without the need to include "Section 8" in it.

  • 3

    Credibility

    Strict compliance framework boosts trust and reliability compared to NGOs and trusts.

  • 4

    Separate Legal Entity

    Recognized as a separate legal entity with perpetual existence, enhancing autonomy and credibility.

  • 5

    Tax Exemption

    Eligible for 100% tax exemption under Section 12AA of the Income Tax Act as profits are used for charitable purposes.

Documents Required for Section 8 Company Incorporation

  • 1. Articles of Association (AOA) and Memorandum of Association (MOA)

  • 3. Proof of office address (utility bills such as electricity, water, or gas)

  • 5. Resolution passed by the promoter company

  • 7. Residential and identity proof of nominees and subscribers

  • 2. Declaration by the first director(s) and subscriber(s)

  • 4. Certificate of Incorporation (COI) of an overseas corporate body (if applicable)

  • 6. Consent of Nominee (INC-3)

  • 8. Applicant’s identity and residential proof

  • 10. Declaration for unregistered companies

  • Corporate Partner Nomination: If a corporate entity is a partner, it must appoint a natural person as its representative.

  • Capital Contribution: Each partner must contribute to the LLP’s shared capital as mutually agreed.

  • Minimum Authorized Capital: A minimum authorized capital of ₹1 lakh is required for registration.

  • Residency Requirement: At least one designated partner must hold resident status in India.