In India, a Section 8 Company is a type of nonprofit organization established under the Companies Act, 2013 (previously governed by Section 25 of the Companies Act, 1956). These companies are formed for promoting charitable, educational, scientific, research, social welfare, religious, environmental, or similar objectives. They operate with a primary focus on advancing specific causes rather than generating profits for distribution to their members. Section 8 Companies enjoy benefits such as limited liability for their members and eligibility for tax exemptions under the Income Tax Act, 1961. They play a vital role in driving philanthropic activities, social welfare initiatives, and community development projects across India.
Click on ‘Sign In/Sign Up’ on the homepage.
Choose User Category as Business User and select User Role.
Fill in required details and create the account.
Verify via OTP sent to your mobile number.
Directors need a DSC containing vital information like name and address.
Obtain DIN through SPICe+ for up to three directors.
For additional directors without DIN, file Form DIR-3.
Reserve company name and provide details including type, category, etc.
Submit Part-A and choose to apply for name reservation separately if required.
Submit proof of identification and address for directors and shareholders.
Provide proof of registered office of the company.
Fill in details of company’s capital structure, registered office, subscribers, etc.
Attach required documents.
Submit Part-B of SPICe+ form.
Fill in details in e-form SPICE-AOA.
Submit necessary forms related to interpretation, share capital, board of directors, etc.
A Section 8 company is a type of non-profit organization registered under the Companies Act, 2013, in India. These companies are formed with the objective of promoting commerce, art, science, sports,education, charity, protection of the environment, or any other similar purpose, and their profits, if any, are used to further these objectives rather than being distributed to members.
No, a Section 8 company cannot distribute profits to its members, directors, or shareholders. Any profits made must be reinvested into the company for the promotion of its objectives.
Yes, under the Companies Act, 2013, a Partnership firm or an LLP can become the member of Section 8 Company. The provisions of respective Acts need to be complied with by the partnership firm or LLP as the case may be.
Yes, a Section 8 company can change its name following the stipulated process under the Companies Act, subject to approval.
The appropriate ITR form for Section 8 companies is Form ITR-7. This form is specifically designed for entities, including trusts, political parties, institutions, and other non-profit organisations, to report their income and financial particulars.