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Section 8 Company Registration

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Non Profit Company

Generally companies are promoted with an object of making profit by carrying commercial transactions. But a company can be registered with charitable motive with the object not to make any profit also.

The registration of such company is subject to the provisions of Section 8 of the Companies Act. 2013. So, these companies generally called as Section 8 Company. These companies must be formed with an object to promote of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.

The name of a Company registered under Section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust etc.

A Section 8 Company shall not pay any dividend to its members but apply its surplus of receipts over payments for promotion of its objects. These companies need not use the words Limited or Private Limited after the name.

The registration process of a Section 8 company is slightly different from a regular limited company. A license for registration must be obtained from the Ministry of Corporate Affairs for registration as a Section 8 Company.

These companies are generally registered as Guarantee Company with limited liability with or without capital. This company can be private or public in nature depends on the number of persons involved in it.

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Section 8 Company

Section 8 Company can be any type of company registered under Companies Act,2013. The main difference of this type of company is this type of entity is created for not for profit purpose

Procedure for Registration
  1. Decide Type of Company: Whether Private Company, or public company with limited by share or limited by guarantee
  2. Apply for Name: Once the type of company is decided, apply of name of the company. The name shall not end with private limited or limited
  3. After approval of name apply for license to Respective registrar of companies
  4. Obtain license: Registrar may ask for clarification and explanation. Once everything is clarified, registrar will issue license.
  5. Apply for Registration: After getting license from Registrar of Companies, apply for incorporation with central registrar

What is section 8 company?

Section 8 company is a company register for carrying non profit activities like charity, education etc without profit distribution to members

Is it Difficult to Register Section 8 Company

No, the objects of the company meet within the prescribed activities, section 8 company can be registered without much difficulty

Is profit distribute in Section 8 Company

No, profit of section 8 company can only available for carrying the

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