Section 8 Company Registration

Section 8 Company Registration

A Section 8 company is a non-profit organization established with the objective of promoting charitable activities such as education, arts, science, sports, environmental protection, and social welfare. Registered under Section 8 of the Companies Act, 2013, these companies are allowed to generate profits but are prohibited from distributing them among members. Instead, all profits must be used to further the charitable goals for which the company was established.

Key Elements of Section 8 Company Registration

• Non-Profit Purpose: Must be formed for charitable activities, with profits reinvested into the cause.
• Limited Liability: Members’ liability is limited to their capital contributions.
• Separate Legal Identity: The company exists independently from its members.
• No Profit Distribution: Profits cannot be distributed to members; must be used for charitable purposes.
• Government Approval: Requires Central Government authorization for incorporation.
• Tax Exemptions: Enjoys tax benefits and allows donors to claim tax deductions.
• No Corporate Suffix: Does not require “Limited” or “Private Limited” in its name.

Why Choose Section 8 Company Registration?

Section 8 company registration is ideal for non-profit organizations focused on charitable causes, offering several advantages.