An Overview of Section 8 Company Registration

In India, a Section 8 Company functions as an NGO dedicated to advancing various fields such as art, science, education, sports, and charitable activities. Unlike Trusts or Societies, profits generated by Section 8 Companies are reinvested to support their stated objectives rather than being distributed to company members. The registration process for a Section 8 Company falls under the jurisdiction of the Ministry of Corporate Affairs (MCA), distinguishing it from Trusts and Societies, which are governed by State Government Registrars. Opting for Section 8 Company registration through RegisterKaro offers distinct advantages over Trusts and Societies. The Section 8 structure enhances credibility with government departments, stakeholders, and potential donors. At RegisterKaro, our proficient team ensures a seamless registration process for your Section 8 Company. With expertise in documentation, application filing, and efficient incorporation, we alleviate your concerns, making the entire process smooth and effective. Advantages of Section 8 Company Registration in India Following are the advantages of Section 8 Company Registration in India: 1. Separate Legal Entity: These types of companies in India are considered as a separate legal entity, which means that they can own property, sue or be sued in their name, and enter into contracts. 2. More Trustworthy & Credibility: Due to its non-profit nature, Section 8 Companies are often viewed as more credible & trustworthy than other types of Companies. 3. Nil Stamp Duty: These Companies are exempted from paying stamp duty on their Registration Documents. 4. Minimum Share Capital: These companies don’t have any minimum capital requirement. 5. No Minimum Capital is Required: In India, Section 8 Companies do not have a minimum capital requirement and they can adjust their capital structure as per their growth and give them more flexibility. 6. Exemption to Donors: Tax exemption is only allowed to the donations received by the Section 8 Company under Section 12A & 80G of the Income Tax Act.