Section 8 Company Incorporation

Section 8 Company Incorporation

A company with tax benefits

When a company is registered as a Non-Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives it is referred to as a Section 8 company.
The income of NPO can not be used for paying out dividends to the company’s members and has to be for the promotion of charitable objectives. Such companies obtain an incorporation certificate from the central government and are liable to adhere to the rules specified by the government.
According to the rules, failure to comply with the responsibilities stated by the Central Government may lead to the winding up of the company on the orders of government. Besides, strict legal action will be taken against all the members of the company if the objectives laid down by the company proves to be bogus.
Play Video


We coordinate to fulfill all your legal and financial requirements and connect you to consistent professionals. Our experts are always there to assist you in case you would like to venture into the establishment of a Section 8 company.
Why Choose Us

Leading Financial Consultants At Your Service

We aim to protect and maximize client wealth with smart tailored solutions and we are experts in providing financial investment advice.


We aim not to just work for you, but to work with you for years to come by cultivating a professional relationship based on trust.


We understand that a company’s financial investments and management is not for everyone to know, and take pride in out work ethic of client confidentiality.


We believe in teamwork, working collaboratively to achieve higher goals to optimize your business.


Our experts are always there to support you throughout your financial journey and beyond.


Frequently asked questions.

Following factors are to be considered while registering Section 8 Company:-

The Company may be registered as a company limited by shares or by Guarantee and not with unlimited liabilities.

  • It can be a holding company of another company and can promote another company.
  • The company cannot be amalgamated with a company that is not a Section 8 company.
  • There must be atleast 1 meeting within every six-calendar month.
  • Non-applicability of Section 149(1), Section 178 of Companies Act, 2013
  • Secretarial Standards are not applicable.
  • No proxy by the members.

No Minimum Capital

In section 8 company registration, there is no minimum capital criteria.

Avail Tax Benefits

Various tax exemptions and compensations are provided to the company as well as to the donors who are contributing to Section 8 Company.

Exempted From Payment Of Stamp Duty

No stamp duty is required on the Section 8 Company registration as the company is exempted from the payment of stamp duty applicable for registration.

Separate Legal Identity

Section 8 Company has a separate legal entity as private/public company and has a distinct legal personality from its member.


Section 8 Company has more credibility as compared to any other form of a charitable organization.

Transfer Of Ownership

Members of Section 8 Company members can easily transfer the ownership of the company.

Every Section 8 company needs to follow the compliance levied by Income tax authorities and Registrar of Companies. If the company fails to satisfy the requisite compliance, it can cause heavy penalties up to Rs 1 lakh in a year.

Section 8 companies are required to comply with the Annual Docility as per the Companies Act 2013-

  • Two board meetings in a year
  • Preservation of Books of accounts
  • Compulsory audit.
  • Income tax return filing.
  • Filing AOC-4 and MGT-7
  • Registering for 12AB.
  • Adoption of financial statement.