Section 8 (Non-Profit)
For organizations dedicated to promoting arts, commerce, science, education, or charity.
Key Benefits
What is Section 8 (Non-Profit)?
A Section 8 Company is an organization registered under the Companies Act, 2013 for charitable or not-for-profit purposes. It aims to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or protection of the environment. The profits, if any, are used solely for promoting these objectives.
Characteristics
- No minimum capital requirement.
- Profits cannot be distributed to members as dividends.
- Must apply for a license from the Central Government.
- Can be formed without 'Limited' or 'Private Limited' in its name.
Regulations & Rules
- Section 8 of the Companies Act, 2013
- Companies (Incorporation) Rules, 2014
Advantages
- Tax Exemptions: Eligible for exemptions under Section 12AA and 80G of the Income Tax Act.
- Zero Stamp Duty: Often exempted from stamp duty for registration.
- No Minimum Capital: Can be started with very low initial funds.
- High Credibility: Regarded more highly than Trusts or Societies by donors and government.
Our Role
At Sunil K Sharma & Associates, we provide specialized Section 8 (Non-Profit) services tailored to the unique needs of your business. Our expertise ensures that you navigate the complex regulatory environment with ease and confidence. We handle everything from documentation to final approval, allowing you to focus on your core business.