The members must also be Indian citizens and at least one of them must have a Director Identification Number (DIN).įurthermore, the proposed company must also have a minimum of three directors, who must also be Indian citizens and should possess DINs. Firstly, the company must have a minimum of two members who are subscribing to the Memorandum of Association. In order to be eligible for registration as a Section 8 company, the organization must fulfil specific criteria. This makes it easier for them to focus on their activities without worrying about meeting compliance requirements.

Section 8 companies are not required to comply with the stringent regulations that are applicable to other companies.

This can attract more donations and investments, which can be used to further the objectives of the company. ReputationĪ Section 8 company is seen as a credible and reliable organization by the public. This provides them with an additional source of income, which can be used to further their objectives and activities. Section 8 companies are eligible for government grants and funding. This is a significant benefit for companies engaged in charitable activities, allowing them to save on taxes. Under the Income Tax Act 1961, section 8 companies are eligible for tax exemptions. All that is required is a minimum of two members who share a common vision and submit the necessary documents to the Registrar of Companies (RoC). Setting up a Section 8 company is much easier than a regular one. In recent years, India has seen a considerable rise in Section 8 companies, as they offer certain advantages that other companies do not. These companies are registered for non-profit activities and cannot distribute profits or dividends to their members. This section outlines the registration requirements for businesses that have charitable objectives or that promote anything akin to those in the arts, sciences, sports, education, research, social welfare, and religion. Section 8 Companies are established under Section 8 of the Companies Act, 2013 and governed by the Ministry of Corporate Affairs (MCA). Learn » Section 8 Company » What is a Section 8 Company? What is a Section 8 Company?

Itr 1 form download