Features of Section 8 Company
A Section 8 Company is a legal entity formed with the objective of promoting charitable activities such as education, healthcare, social welfare, environmental conservation, and other non-profit initiatives. Unlike traditional companies, Section 8 Companies operate without the motive of earning profits and utilize their income solely for the advancement of their objectives.
Who needs a Section 8 Company?
• NGOs & Social Enterprises looking for structured legal recognition.
• Educational Institutions & Research Organizations wanting to promote learning and innovation.
• Charitable & Religious Trusts seeking to formalize their operations.
• Healthcare & Medical Welfare Organizations focused on providing affordable medical aid.
• Environmental & Sustainable Development Initiatives working towards ecological conservation.
• Corporate CSR Initiatives aiming to establish a structured framework for social impact projects.
Key Features of Section 8 Company
• No Minimum Capital Requirement: You can start with any amount of capital as per your needs.
• Limited Liability Protection: Members’ personal assets remain safeguarded.
• Tax Benefits: Eligible for tax exemptions under Section 12A and 80G of the Income Tax Act.
• No Dividend Distribution: Profits or earnings must be reinvested for social causes.
• High Credibility: More legally recognized and trusted than traditional NGOs or trusts.
• Perpetual Existence: Continues to operate even with changes in management or members.
• Exemptions on Stamp Duty: Lower compliance costs compared to other company types.
Advantages
• Tax Benefits
Eligible for various tax exemptions under Income Tax Act (especially if registered under 12A and 80G).
• No Minimum Capital Requirement
Unlike private limited companies, there's no minimum capital requirement to start.
• Limited Liability
Members have limited liability; personal assets are not at risk.
• Credible and Trustworthy
Regulated by the Companies Act and Registrar of Companies, it gives high trust among donors, government, and stakeholders.
• Separate Legal Entity
Has its own legal identity, can own assets and enter into contracts in its own name.
• Exemption from Stamp Duty
No stamp duty on registration which is otherwise applicable for private or public limited companies.
• Perpetual Succession
The company continues to exist regardless of changes in members or directors.
• Eligible for Grants and Donations
Easier access to government and foreign funding (especially after FCRA registration).
• No Profit Distribution
Profits cannot be distributed among members; must be reinvested for the company’s objectives.
• Strict Regulatory Compliance
Requires regular filings, audit reports, board meetings, etc., even if it’s a non-profit.
• Central Government Approval
Name approval and license from the Central Government (MCA) is mandatory — takes time.
• Limited Objectives
Cannot undertake activities outside the charitable scope (e.g., arts, education, environment, etc.).
• More Scrutiny
Being a non-profit, financials and activities are closely watched to ensure funds are not misused.
• Restrictions on Name
Can’t use suffixes like “Ltd” or “Pvt Ltd” — must indicate it's a non-profit in nature.
Comply Hub assists in obtaining DSC for all directors, enabling secure digital filings with the Ministry of Corporate Affairs (MCA).
We help directors obtain DIN via the SPICe+ form, ensuring they are officially recognized for company registration.
Our team submits the RUN (Reserve Unique Name) form on the MCA portal, ensuring your company name aligns with legal guidelines.
We prepare and file SPICe+ (Part A) along with MOA, AOA, and necessary declarations to secure the Section 8 license from the MCA.
Comply Hub takes care of filing SPICe+ (Part B), MOA, AOA, PAN, and TAN, completing the legal formalities for incorporation.
After approval, we deliver the Certificate of Incorporation, officially recognizing your Section 8 Company and enabling its operations.
1. Eligibility for Partners:
• Minimum Partners: At least 2 partners are required to form an LLP.
• Maximum Partners: No upper limit on the number of partners.
• Designated Partners:
○ At least one designated partner must be a resident of India.
○ Designated partners are responsible for regulatory and legal compliance.
• Age & Citizenship:
○ Partners must be at least 18 years old.
○ Indian and foreign nationals can be partners.
2. Eligibility for LLP Formation:
• Profit-Making Purpose: LLPs are meant for profit-oriented businesses.
• Legal Entities:
○ Individuals, LLPs, or companies can become LLP partners.
○ HUFs (Hindu Undivided Families) and minors cannot become partners.
• No Minimum Capital Requirement:
○ There is no minimum capital requirement to form an LLP.
○ However, partners must contribute some amount towards the LLP.
3. Restrictions on Business Activities:
• LLPs cannot engage in:
○ Banking, insurance, or finance-related activities.
○ Non-profit activities (cannot be registered as a Section 8 company).
• LLPs must comply with annual ROC filings and maintain proper financial records.
Estimated Completion Time
15-20 Days
Estimated Completion Time
8-10 Days
Estimated Completion Time
5-7 Days
The expected completion time given above for all packages does`not include the time taken by the government for approvals.
Company name reservation is free for the first time. Applying again would be chargable.
Get 10% Flat OFF on Trademark registration and GST Registration packages if you buy a premium package for private limited company registration