What is section 8 company? - VRGyani News and Media


Thursday, January 10, 2019

What is section 8 company?


Section 8 of the Companies Act 2013 provisions for the formation of companies with charitable purposes. Section 8 Company, (initial Section 25 Company of the Companies Act, 1956), is a legal entity for Non-Government or Non-Profit Organizations.


In India, Section 8 Company is licensed under Section 8 of the Companies Act, 2013 (the Act)  previously known as Section 25 Company under the Companies Act, 1956. The rules & laws that are made and are regulated by the Ministry of Corporate Affairs.

The Company Incorporation rules, process, requirements, and the methods vary more or less depending especially on the type of the company that is to be incorporated. One must register Section 8 company from a verified organisation.

The main object for supporting research, social welfare, religion, charity, commerce, art, science, sports, education, and the protection of the environment or any such other object, provided that the profits or the other income is applied for promoting only the objects of the company and also no allowance is paid to its members.


Section 8 Company is a company which is registered for non-profit purposes. This company is similar to a Trust or Society and exception is that a Section 8 Company, societies, and trusts are registered under the State Government regulations.

Section 8 Company registered under the Central Government of India, Ministry of Corporate Affairs (MCA). This, however, has various benefits when it is compared to Trust or Society and it also has higher credibility amongst the donors, Govt. authorities, and other stakeholders.

The key feature of this Company is that the name of the Company can be incorporated without using the word “Limited” as the case may be.

The least documents that are required for such company are:

  • There must be Least of two shareholders.
  • There must be Least of two Directors (Directors and shareholders can be the same person).
  • One Director section 8 company shall be the resident in India.
  • There is No requirement of Least capital.
  • The Income-tax PAN is a necessary requirement in case of the Indian citizens.
  • Anyone of the Identity Proof is that  Aadhar Card/Voter ID/Driving License/Passport is required, Passport is a mandatory requirement for the proof of identification in case of the foreign citizens.
  • Anyone of the Proofs of Residence (Electricity Bill/Mobile Bill/Bank Statement/Telephone Bill).
  • The Registered Office address proof (that is the rent agreement along with latest rent receipt and a no objection certificate from the owner of the premises and a copy of the latest utility bill in the name of the landlord, in case the premises are rented).
  • In case the premises are owned by either the  Director and the Promoters, any of the records proving ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.

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