Section 8 Company or a Non-Profit organisation (NPO) is a Company established for promoting commerce, art, science, religion, sports, education, research activities, charity or any other useful social object, provided the profits and donations are applied to promoting only the objects of the company and no dividend is paid to its members or owners.

The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for the promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefited from those profits.

Many privileges and exemptions are available to section 8 companies as under

1. Exemption from requirement of Minimum Paid-up capital

2. Exemption of Stamp duty for registration

3. Non-application of Companies Auditor's Report Order (CARO)

4. A Registered partnership firm can be a member in its own capacity

5. Tax deductions to the donors of the Company u/s. 80G of the Income Tax

• Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)

• Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)

• The directors and shareholders can be same person

• DIN (Director Identification Number) for all the Directors

• DSC (Digital Signature Certificate) for all of the Directors

• Address proof for proposed office address

• PAN & Aadhar of 2 Directors

• Scan copy of Passport size photographs of Both Directors

• Scan copy of Specimen Signatures of Both Directors

• Address Proof of Both Directors (Eg: Electricity Bill, Telephone Bill etc) in case Aadhar address is different

• Latest 3 Months Bank statement of Both Directors

• Mobile Numbers & Email IDs of Both Directors

• DIN for 2 Directors

• Digital Signature Token for 1 Director

• Company Name Approval

• MOA + AOA

• Company PAN Card Company TAN/TDS Number

• Bank Account Opening Document Support

• Domain, Website with hosting for 1 Year

• Accounting setup in Zoho Booking Software for 1 year

You need to arrange very simple documents of directors like photographs, Pan card and one address proof.

No, commercial office space is not required. You can show your own residential or rented home address as the registered office address of the Company. This office address can be changed at any time after the incorporation of the company. Once your startup is set up, stable and ready to move on to a nice corporate space you can change the registered office address by informing the ROC office.

ROC is a Government office with which companies get registered. Every State has one ROC office except Maharashtra and Tamilnadu where there are two ROC offices. In Maharashtra, companies are registered with Mumbai & Pune ROC. In Tamilnadu, companies are incorporated at Chennai and Coimbatore ROCs. In all other States like Delhi, there is only one ROC office, like in Bangalore, Hyderabad and so on.

No. We provide a complete online Company Incorporation process. All legal documentation and visits are done by us.

 No. Once the company is formed, it will be valid till it is officially closed down by the owners. No renewal or fees is required. However,  every year companies have to file very basic returns with the ROC office.

Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company. DIN is issued by the ROC office (Ministry of Corporate Affairs)

It is similar to a PAN Card number.DIN is to be mentioned in documents while appointing a person as a director of a company.

A digital signature is an electronic signature, which is in the form of codes. It is used for signing the electronic forms, filed with ROC for incorporation of the Company. Digital Signatures cannot be used in physical documents.

A Company name is a very important part of the registration of the company. The company name is divided into 3 Parts:

1) Keyword (brand name like TATA or Flipkart) 

2) Activity word (i.e. showing nature of business like Software) 

3) Business Type word (i.e. Pvt. Ltd. or LLP). 

For the Incorporation of the company, the suggested name should not match with existing companies or trademarks.

MOA means Memorandum of Association and AOA means Articles of Association. These are the bylaws or rules based on which important matters like the main business of the company or meetings are decided. These are standard legal documents prepared by Company Secretaries during the registration of the Company.

Profit or Income of a Non-Profit Company can only be used for the promotion of the charity work in which it is involved. Even declaration of dividend or distribution of profit to its promoters is not allowed

No. Promoters of a Non-profit company can be employed as a paid employees of the company

Yes, Section 8 company be converted into a private limited company after taking the approval from ROC.