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A Section 8 company is a type of limited company. While it has the same rights and restrictions as a regular limited company, it doesn’t need to use the words “private limited” or “limited” in its name.If it is registered as a non-profit organization, it will not be able to receive the profits of its activities.

Section 8 Company Form

A Section 8 Company is an entity that is registered with the Ministry of Corporate Affairs of the Central Government. Its purpose is to advance non-profit objectives in society. It is not allowed to pay dividends. It must have a minimum of three directors and no more than six. It also has limited liability and cannot have unlimited liabilities. It must have a government license. There are several advantages of forming a section 8 company. 

Another benefit of a Section 8 company is that it can have as many as two directors. This is an additional benefit over a traditional company. As a bonus, section eight companies are also much easier to start. There is no need to spend a fortune to form a Section 501(c)(3). The ROC will help you file your annual reports with the proper authorities. This type of organization is not for profit-seeking organizations.

While a Section 8 company is more expensive than a traditional corporation, it has a lower tax burden. This tax-deductible organization is similar to a Society or Trust, but it operates under a different set of rules. It is a registered charity and can use its profits to benefit low-income societies. It is also easier to register for a section 8 company, which gives it a more credible reputation. A section 8 company name doesn’t need to contain the word “Limited” or “Private Limited”.

Before registering To Section 8 Company

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Documents Required For Section 8 Company Registration

Passport Size Photo

Pan card copy

Director Details

MOA & AOA

Aadhar Card Copy

Address Proof

DIN

Digital Signature

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