Section 8 Company

Section 8 Company Registration in Delhi – Process, Benefits & Eligibility

A Section 8 Company is one that is formed as a Non-Profit Organisation (NPO) with the primary objective of supporting charity and social causes. If you're looking for Section 8 company registration in Delhi, you should know that these businesses are founded to promote education, arts, commerce, science, sports, environmental protection, social welfare, and religious or charity activities. All revenues or income gained must be used exclusively for these purposes, and no dividends may be issued to members.

The Central Government gives these firms an incorporation licence, and they must follow the precise laws and restrictions outlined in the firms Act.

Eligibility Criteria for Section 8 Company Registration in Delhi:

• Individuals or groups (association of persons) can apply if their intent aligns with the charitable or non-profit objectives mentioned.
• The primary aim must be to advance fields such as science, education, art, commerce, religion, social welfare, research, sports, or environmental conservation.
• Any profits or income earned must be reinvested in the pursuit of these approved causes.
• The company must not distribute dividends to its members under any circumstances.

Section 8 company registration in Delhi is suitable for people who want to make a beneficial influence on society while also gaining legal recognition and structure for their non-profit efforts.

Advantages of Becoming Section 8 Company

Separate Legal Existence

By Section 8 company registration, a separate legal entity will be incorporated with a separate PAN. A corporate entity attracts more funds from donors.

Limited Libility

The liability of the members will be limited up to the subscribed share capital of the company.

No Stamp Duty on MOA & AOA

Basically, the government charges the stamp duty on MOA & AOA at the time of incorporation of the company. But the government does not charge the stamp duty on MOA & AOA for the incorporation of Section 8 Company.

Exemptions for Directors

A Section 8 company can appoint more than 15 directors even without taking approval from shareholders. The appointment for independent director shall not apply to a section 8 company.

Tax Benefits

The section 8 companies get tax exemptions in the Income Tax. Furthermore, the donors can also claim the tax exemptions by donating funds to the section 8 company.

Appointment of Company Secretary

It is a privilege for the section 8 companies that even if it falls under the criteria for the mandatory appointment of Company Secretary, the company can appoint any other qualified person as a Company Secretary even though he/she is not a member of ICSI.