Section 8 Company Registration

Section 8 Company Registrations

The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.

To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company. A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.

Section 8 Company Registration
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Section 8 Company

Benefits of Section 8 Company Registrations

Distinct Legal Identity

Section 8 Company is a separate legal entity and is different from it’s members. The Company has perpetual existence. Along with having organized operations and greater flexibility making it different with other companies.

Zero Stamp Duty

A Section 8 Company is exempt from the requirement of paying stamp duty on the MoA and AoA of the private or public limited company, which is applicable for registration of other kinds of company structures.


Section 8 Company is not required to suffix “Public Ltd. or Private Ltd., next to it’s legal name. It can be registered with names as “Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation”.


Section 8 Companies are more reliable than all other forms of charitable organizations. They are governed by the Companies Act and are regulated strictly. Such as the requirement of a mandatory annual audit, and both the “MOA and AOA”.

No Minimum Capital Require

No minimum capital limit has been mentioned for a Section 8 Company in India. And the capital structure can be altered at any stage as per the growth requirements of the company.


A registered partnership firm can become a member in it’s individual capacity and can obtain Directorship under the Section 8 Company Registration to promote no-profit objectives such as trade, commerce, arts, charity, education etc.

Important Points of Section 8 Company

No Profit Motive

The companies registered under section 8 of the companies act, cannot disburse profits or assets to its members as per the Companies Act.

Voting Rights

The voting rights to the members of section 8 company are based on the number of shares, similar to that of any other company under Companies Act.

No Minimum Capital

There is no minimum level of capital prescribed, hence a section 8 company can be incorporated with the capital as required by it.

One Resident Director

One director of the company must be resident of India. A person is said to be a resident when he stays in India at least 182 days in the F.Y.