1. Mandatory PAN and Income Tax Return Filing Yes, all Section 8 companies are mandatorily required to obtain a PAN (Permanent Account Number) under the Income Tax Act, 1961. They must file an income tax return (ITR-7) annually, regardless of income level. This...

1. Income Tax Exemption under Sections 11 and 12 Section 8 companies that obtain registration under Section 12AA or 12AB of the Income Tax Act, 1961, can claim exemption on income applied for charitable or religious purposes. Income from donations, grants, and...

1. Legal Provision for Conversion Yes, a Section 8 company can be converted into a regular private or public limited company. This is permitted under Rule 21 and Rule 22 of the Companies (Incorporation) Rules, 2014. Such conversion requires prior approval from the...

1. What is a DIN (Director Identification Number)? A Director Identification Number (DIN) is a unique 8-digit number issued by the Ministry of Corporate Affairs (MCA). It is mandatory for any individual who intends to become a director in a company in India. DIN is...

1. No Government Fee for License under Section 8 Section 8 companies are exempt from paying the government fee for obtaining the license. The Form INC-12, which is filed to apply for the license, has zero government charges. This fee exemption is granted under the...

1. Preparation and Document Collection (3 to 5 Days) Collect and prepare identity, address, and office proof documents for directors and members. Obtain Digital Signature Certificates (DSC) for proposed directors. Draft the Memorandum of Association (MOA) and Articles...

1. Authority to Grant License under Section 8 The Regional Director (RD) is the designated authority under the Ministry of Corporate Affairs (MCA) to grant the license for forming a Section 8 company. This license allows the entity to operate without using “Limited”...

1. Understand the Purpose and Structure of the AOA The Articles of Association (AOA) define the internal rules and regulations of the company. For a Section 8 company, the AOA must reflect its charitable or non-profit objectives. It governs the appointment, roles, and...

1. Documents of Directors and Promoters PAN Card of each director and promoter (mandatory for Indian nationals). A passport is required for foreign nationals as identity proof. Aadhaar Card, Voter ID, or Driving License as address proof. Recent passport-size...

1. Understanding the Naming Guidelines The name of a Section 8 company must reflect its charitable or non-profit nature. Names that suggest profit-making or commercial motives are not allowed. Words like "Foundation", "Association", "Society", "Council", "Institute",...