Section 8 company registration

A Section 8 Company, also known as a Non-Profit Company, is a type of organization that is

registered under Section 8 of the Companies Act, 2013. The primary objective of a Section 8

Company is to promote charitable or non-profit objectives, such as social welfare, education,

healthcare, environmental protection, and poverty alleviation. In this article, we will discuss the

significance of Section 8 Company registration and how it can benefit an organization.

Section 8 Company Registration

To register a Section 8 Company, the organization must have a minimum of two directors and

two shareholders. The organization must also have a registered office address in India. The

registration process for a Section 8 Company is similar to that of a regular company. However,

there are a few additional requirements that must be fulfilled, such as:

1. Name: The name of the Section 8 Company must end with the words "Foundation,"
"Association," "Society," "Council," "Club," "Charity," "Institute," "Organization," or
"Federation."
2. Memorandum of Association (MOA): The MOA must state that the organization's primary
objective is to promote charitable or non-profit objectives. The MOA must also mention
that the profits, if any, will be used for promoting the organization's objectives.
3. Articles of Association (AOA): The AOA must specify the rules and regulations for the
organization's governance, such as the appointment of directors, voting rights, and the
distribution of profits.

Benefits of Section 8 Company Registration

1. Tax Benefits: A Section 8 Company is eligible for tax exemptions under Section 80G of
the Income Tax Act, 1961. This means that donations made to the organization are tax-
deductible, which can encourage more individuals and companies to donate.
2. Limited Liability: Like any other company, a Section 8 Company has limited liability
protection. This means that the shareholders' liability is limited to the amount of capital
they have invested in the organization.
3. Credibility: A Section 8 Company is a legally recognized entity, which adds credibility to
its operations. This can help the organization attract more donors, investors, and
stakeholders.
4. Perpetual Succession: A Section 8 Company has perpetual succession, which means that
the organization will continue to exist even if the directors or shareholders change. This
ensures the organization's continuity and stability.
5. Access to Grants: A Section 8 Company is eligible for grants from the government and
other organizations, which can help the organization expand its operations and achieve
its objectives.
Conclusion

In conclusion, Section 8 Company registration is a significant step for organizations that aim to

promote charitable or non-profit objectives. A Section 8 Company offers various benefits, such

as tax exemptions, limited liability protection, credibility, perpetual succession, and access to

grants. These benefits can help the organization attract more donors, investors, and

stakeholders, which can, in turn, help the organization achieve its goals.

The registration process for a Section 8 Company can be complex, and organizations may

require professional assistance to navigate the process. However, the benefits of Section 8

Company registration far outweigh the challenges, and organizations should prioritize obtaining

this registration to ensure their operations are sustainable and effective.

By NGO Partner