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The Section 8 Company means a Company formed with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members.
This type of NGO is favorable for those who want to work on PAN India Basis and on a greater scale. Minimum members required to incorporate Section-8 Foundation is 2 members.
| S.No. | Particulars | Trust | Society | Section-8 Foundation |
| 1 | Act Governance | Indian Trust Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 |
| 2 | Members | Minimum:3 | Minimum:7 | Minimum of 2 Directors/Shareholders |
| 3 | Jurisdiction | State in which it is Registered | State in which it is Registered | PAN India |
| 4 | Annual Compliance | Basic ITR Filing | Society Audit and ITR | Audit and ROC Filing |
| 5 | Registration Document | Trust Deed | Society Certificate and Byelaws | License , MOA and AOA |
Minimum Requirements
The Section 8 Company means a Company formed with an object to promote commerce, art, science, sports, research, education, religion, protection of the environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members.
In India, Section-8 Company is regulated by the Indian Companies Act, 2013 (and the amendments thereof) and the rules & regulations that are made thereunder and is administered by the Ministry of Corporate Affairs, Government of India through the Offices of Registrar of Companies (‘RoC’).
Section 8 Companies are similar to a Trust or Society as the Societies and Trusts are registered under the State Government regulations whereas Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”.
This, however, has various advantages when it is compared to Trust or Society and it also has higher credibility amongst the donors, Government departments, and other stakeholders. There is no requirement to use the word “Limited” or “Private Limited” as the case may be.
Companies Act, 2013 has listed the following requirements for the incorporation of a Section 8 company
Minimum Number of Members:
Two/Seven (Two if it is proposed to be incorporated as Private Limited and Seven in case of Public Company)
Minimum Number of Directors:
Two/Three (Two if it is proposed to be incorporated as Private Limited and Three in case of Public Company)
PAN Card
Self-attested PAN Card of Members and Directors.
Self-attested ID proof of Members and Directors- (Anyone out of the following -Valid Passport/Voter ID/Aadhar Card/Valid Driving License)
Self-attested Address Proof of Members and Directors and Should Not be Older than 2 Months (Anyone out of the following – Bank Statement/Electricity Bill/Telephone Bill/Mobile Bill)
Passport Size Photo
2-2 Passport Size Colored Photos of Members and Directors.
Business Address Proof
(Owned/Rent/Leased)
NOC from the Owner of Property/Property Papers (Title Deed)/Utility Bill (Either Electricity Bill or Mobile Bill or Telephone Bill) (Should Not be Older than 2 Months)
Authorized and Paid-up Share Capital of the Proposed Company and Number of Shares Subscribed by Members.
Explanation: A Company can be started with the minimum capital of Rs. 500000/- and 10 members and shall be treated as a Public company.
Contact us today to explore how we can support you in fulfilling your taxation requirements.
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