Section 8 Company Partnership -

Section 8 Company Partnership

Simplifying the process of company incorporation for your business.

What is a Section 8 Company Partnership?

A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, dedicated to promoting charitable, social, or welfare activities such as education, arts, science, sports, or environmental protection. Unlike other companies, its profits cannot be distributed as dividends and must be reinvested in the company’s objectives.

Operates for charitable or social purposes, not for profit-making.
Members’ liability is restricted to their capital contribution.
Can be registered with any capital amount.
Eligible for tax exemptions under Section 12A & 80G of the Income Tax Act.
Can own property, enter contracts, and sue or be sued in its name.
More trusted than NGOs or trusts due to MCA regulation.

Why Choose Section 8 Company?

Legal Recognition & Credibility – Registered under the Companies Act, making it more reliable than trusts or societies.
Non-Profit with Limited Liability – Members’ liability is limited, ensuring personal assets remain protected.
Tax Benefits & Exemptions – Eligible for Section 12A & 80G tax exemptions, reducing financial burden.
No Minimum Capital Requirement – Can be started with any amount, making it accessible for all.
Eligible for Government & CSR Funding – Can receive grants, foreign donations (FCRA), and corporate social responsibility (CSR) funds.
Perpetual Existence – Continues to operate despite changes in ownership or management.

Documents Required for Section 8 Company Registration

For Directors & Shareholders:
- PAN Card (Mandatory for all directors & members)Aadhaar Card, Voter ID, or Passport (As identity proof)
- Passport-size Photographs
- DIN (Director Identification Number) & DSC (Digital Signature Certificate)
Registered Office Proof:
- Electricity Bill, Water Bill, or Property Tax Receipt (As address proof)
- Rental Agreement & NOC from the Owner (If rented)
- Property Sale Deed (If owned)
Additional Documents:
- Memorandum of Association (MoA) & Articles of Association (AoA) (Defining objectives & company rules)
- Declaration by Directors (INC-15 Form) (Stating non-profit objectives)
- Estimated Income & Expenditure Statement (For the next three years)

Mandatory Criteria for Section 8 Company Registration

To register a Section 8 Company Partnership in India, the following requirements must be met:

Non-Profit Objective – The company must operate for charitable, social, or welfare purposes (e.g., education, arts, science, environment, sports).
No Profit Distribution – Profits must be reinvested in the company’s objectives and cannot be distributed as dividends.
Minimum Two Directors – A Private Section 8 Company requires at least 2 directors, while a Public Section 8 Company needs 3 directors.
At Least One Indian Resident Director – At least one director must be a resident of India (staying in India for at least 182 days in a financial year).
No Minimum Capital Requirement – Can be registered with any amount of capital.
Approval from MCA & Central Government – Requires a special license from the Ministry of Corporate Affairs (MCA) for incorporation.
DIN & DSC for Directors – Directors must obtain a Director Identification Number (DIN) and Digital Signature Certificate (DSC).
Compliance & Reporting – Must maintain proper books of accounts, file annual returns, and undergo mandatory audits.