Section 8 Company Incorporation refers to the process of setting up a non-profit organization under Section 8 of the Companies Act, 2013 in India. A Section 8 company is formed for promoting charitable activities such as education, social welfare, religion, culture, environmental protection, or sports, without the intention of making a profit. The company’s income is used solely for its objectives and not distributed to its members.
The incorporation process involves submitting an application to the Ministry of Corporate Affairs (MCA) along with the company’s Memorandum of Association (MOA) and Articles of Association (AOA), which specify the non-profit purpose of the company. Unlike other companies, a Section 8 company is exempt from certain provisions of the Companies Act, such as the requirement for minimum share capital.
The company must have at least two directors and must operate for the benefit of the public or a specific group, ensuring that all income and profits are used towards its charitable or non-profit objectives. It can also apply for tax exemptions and other benefits under government schemes for non-profits.
