Non Profit Company Registration

A Non-Profit Company, registered under Section 8 of the Companies Act, 2013, is a legal entity formed with the objective of promoting arts, education, science, religion, charity, or other socially beneficial purposes. Unlike traditional businesses, these companies do not distribute profits among their members but reinvest them towards the fulfillment of their objectives. A Non-Profit Company enjoys various benefits, including tax exemptions and credibility for receiving grants and donations.

Key Features of a Section 8 Company

Non-Profit Companies are formed to promote charitable, educational, religious, or other social objectives, ensuring the profits are utilized for these purposes.

There is no requirement for minimum capital, offering flexibility in starting operations with limited resources.

Members enjoy limited liability protection, safeguarding personal assets from business obligations.

The company is a distinct legal entity, independent of its members, directors, or shareholders.

Section 8 Companies are eligible for tax benefits under Section 12A and Section 80G of the Income Tax Act, enhancing credibility for fundraising.

Advantages of a Section 8 Company

  • Credibility: Being registered under the Companies Act adds to the trustworthiness of the organization, especially for donors and grant providers.
  • Tax Benefits: Tax exemptions for both the company and donors under relevant Income Tax sections.
  • Donor-Friendly: Donations received by Section 8 Companies are more likely to attract tax benefits, encouraging higher contributions.
  • Legal Recognition: Enables organizations to carry out their operations across India under a structured legal framework.
  • No Stamp Duty: Section 8 Companies are exempt from paying stamp duty on the registration of their Memorandum and Articles of Association.

Karttech’s Non-Profit Company Registration Services

At Karttech, we simplify the process of registering a Section 8 Company by offering end-to-end support, ensuring a seamless and hassle-free experience.

1. Consultation and Advisory

  • Expert advice on eligibility, objectives, and documentation required for Section 8 Company registration.
  • Guidance on the benefits and compliance requirements.

2. Drafting Key Documents

  • Preparation of the Memorandum of Association (MoA) and Articles of Association (AoA) to align with your organization’s objectives.
  • Drafting additional documents like declarations, affidavits, and forms required for registration.

3. Name Approval

  • Assistance in selecting and securing a unique name for your Non-Profit Company with the Registrar of Companies (RoC).

4. Filing for Registration

  • Filing INC-12 to obtain a license for your Section 8 Company from the Ministry of Corporate Affairs (MCA).
  • Submission of incorporation documents to secure the Certificate of Incorporation.

5. Post-Incorporation Compliance

  • Assistance with acquiring PAN, TAN, and other mandatory registrations.
  • Guidance on obtaining tax exemption certificates like Section 12A and Section 80G.
  • Support for annual compliance, including financial statements and returns.

Requirements for Non-Profit Company Registration

  1. Minimum 2 Directors and 2 Shareholders (can be the same individuals).
  2. Director Identification Number (DIN) and Digital Signature Certificate (DSC) for directors.
  3. A Registered Office Address in India.
  4. Documents required:
    • PAN cards and Aadhaar cards of directors.
    • Proof of registered office (Rent Agreement, Utility Bill, or Ownership Documents).
    • Photographs of directors.

Why Choose Karttech?

  • Expert Guidance: Our professionals provide step-by-step assistance throughout the registration process.
  • Hassle-Free Process: We handle all documentation and filing, saving you time and effort.
  • Cost-Effective Solutions: Affordable pricing for a full range of registration and compliance services.
  • Post-Registration Support: Comprehensive support for obtaining tax exemptions and compliance filings.
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