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Section-8 Company (NPO) Registration With Tax and Services

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Introduction of Section-8 Company(Not for Profit Organisation)

 “Tax and Services,” your go-to destination for comprehensive legal support tailored to Section-8 Companies – entities committed to social welfare and not-for-profit endeavors. As specialists in navigating the intricate legal landscape, we understand the unique challenges and opportunities that Section-8 Companies encounter.

A Section-8 Company, also known as a Not-for-Profit Organization (NPO), is established with the primary objective of promoting social welfare, education, science, art, sports, charity, religion, and other charitable activities. Unlike traditional for-profit organizations, Section-8 Companies channel their resources towards the betterment of society, reflecting a commitment to philanthropy and community development.

At “Tax and Services,” we recognize the pivotal role that Section-8 Companies play in fostering positive change. Our dedicated team of legal experts is equipped to guide you through the nuanced regulatory framework governing not-for-profit organizations. Whether you are in the process of incorporating a Section-8 Company or seeking guidance on compliance matters, we provide tailored solutions to ensure your organization operates seamlessly within the legal boundaries.

Advantages of Section-8 Company

Legal Recognition and Prestige

Section-8 Companies enjoy legal recognition, enhancing their credibility and prestige. This recognition facilitates trust among stakeholders, donors, and the public, which is crucial for the success of any charitable venture.

Tax Exemptions

One of the most significant advantages of Section-8 Companies is the array of tax benefits they receive. These organizations are exempted from paying income tax on their surplus income, ensuring that more resources are allocated towards their charitable objectives.

Perpetual Succession

Section-8 Companies enjoy perpetual succession, meaning that their existence is not dependent on the members. Changes in the membership or even the death of members do not affect the company's continuity, providing stability for long-term charitable endeavors.

Limited Liability

Members and directors of Section-8 Companies have limited liability. This shields their personal assets from the liabilities of the organization, encouraging individuals to actively participate in charitable activities without undue fear of personal financial repercussions.

Flexibility in Operations

These companies have the flexibility to operate anywhere in India, allowing them to extend their charitable activities across regions without cumbersome legal formalities. This flexibility is particularly advantageous for organizations involved in widespread social welfare projects.

No Minimum Capital Requirement

Unlike other types of companies, Section-8 Companies are not bound by a minimum capital requirement. This eliminates the financial barriers that may hinder the establishment of charitable organizations, encouraging more initiatives to address societal needs.

Minimum Requirements

Documents Required for Incorporation

PAN Card

of the Member and Directors of the proposed Company Passport in case of Foreign Nationals

Identity Proof

of the Member and Directors of the proposed Company; (Aadhar /Voter ID/Driving License/Passport)

Address Proof

of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)


passport size photograph of Member and Directors

Business Address Proof Owned Property

(Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof Rented/leased

Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Process of Incorporation of Section - 8 Company

Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team.
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Step 01

Document Processing

At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
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Step 02

Application for DSC

First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.
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Step 03

Name Availability

The next step is to check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.
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Step 04

E-filing for incorporation of a Company

Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from above the same is to be filed with ROC. The MOA as well as AOA shall be drafted with the cautious care thereby keeping in mind the main objective of Section-8 Company. This process again takes 2-3 days.
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Step 05

Get Certificate of Incorporation

Lastly, after the approval a Certificate of Incorporation and Section-8 License will be provided through e-mail which signifies that the Company has been incorporated.
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Step 06

More Insight on Indian Subsidiary Registration for Foreigners

Key Insights

  1. Non-Profit Nature: Section-8 Companies operate on a non-profit basis, aiming to channel resources for the greater good. The earnings are plowed back into the organization to further its objectives.

  2. Registration Process: The process involves obtaining a license from the Registrar of Companies (RoC). The application must include a well-defined memorandum and articles of association, along with details of the organization’s objectives.

  3. Name Selection: Choosing an appropriate name is crucial. The proposed name must reflect the company’s nature and objectives, and it should not resemble any existing company.

  4. No Minimum Capital Requirement: Unlike other company types, Section-8 Companies are not bound by a minimum capital requirement. They can operate with nominal capital, focusing on achieving their charitable goals.

  5. Tax Benefits: Section-8 Companies enjoy certain tax exemptions, making them an attractive option for those looking to contribute to social causes. However, compliance with regulatory norms is essential to avail of these benefits.

  6. Board Composition: The board of directors plays a pivotal role in steering the company. It must consist of individuals committed to the organization’s objectives and possess a vision for its sustained growth.

  7. Asset Utilization: The assets and income generated by a Section-8 Company must be utilized for the specified objectives. Any deviation from this may lead to penalties or loss of tax benefits.


Section-8 Company Registration is a strategic step for individuals or groups driven by a passion to contribute to society. By navigating the regulatory landscape and understanding the nuances, organizations can establish themselves as catalysts for positive change.

At Tax and Services, we provide comprehensive guidance on Section-8 Company Registration and other legal matters. Stay tuned for more insights that empower you on your journey towards making a meaningful impact.

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