Sec 8 Company

Companies Act, 2013 defines section 8 company as a company registered under the act with an object to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc. and intends to apply its profits, if any, or other income in promoting its objects; and to prohibit the payment of any dividend to its members.

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Advantages

  • Ease at transferring ownership/title
  • Can accept donations from general public
  • Zero Stamp Duty on AOA and MOA of the company
  • Many privileges and exemptions under Company Law
  • Tax exemptions u/s 12A and 80G of the Income Tax Act
  • Do not have to include the terms “Limited” or “Private Limited” in their names, though there is limited liability

In some respects, section 8 company is similar to a Trust or Society with an exception that it is registered under the regulations of the Central Government while the Societies and Trusts are registered under the regulations of the State Government.

The following conditions shall be followed to form and function as sec 8 company-

  • Business shall promote science, commerce, education, art, sports, research, religion, charity, social welfare, environmental preservation, or similar goals
  • All profits (if any) or any income earned after formation shall be utilised solely for the promotion of such purposes
  • No dividends to its shareholders.

Setting up business

Private Limited company
Proprietorship
DIN
PAN
EPF

ROC Compliance

LLP ROC Compliance
OPC ROC Compliance
Company ROC Compliance
Closure of Private company
Closure of LLP

Direct tax compliance

Filing income tax returns
Chapter VIA deductions
Capital gains taxation
Taxation of business
NRI income

Indirect tax compliance

GST returns and due dates
Input tax credit claim
GST Refund
GST TCS
GST TDS

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