In this Blog We are going to explore the Top 10 Company Under Section 8 Company in India are non-profit organisations registered in India under the Companies Act, 2013. Its primary objective is to promote social, educational, cultural or charitable activities, with any profits being reinvested to further its mission. Unlike normal businesses, Section 8 companies do not distribute profits among their members.
What is the Section 8 Company?
Section 8 company refers to a non-profit company based under Section 8 of the Companies Act, 2013 in India. This type of company is formed for charitable, social, educational, religious, cultural or profitable purposes, and the profits, if any, are reinvested back into the entity to further its mission rather than being distributed among its members or directors. Here is a detailed explanation of its features and characteristics.
1. Non-profit objective: The company must operate for the promotion of a specific purpose and not for profit. Any income or profits must be reinvested in the company to pursue its goals, rather than being distributed among its members or directors.
2. Limited Liability: Unlike other companies, in a Section 8 company the liability of the members is limited to the extent of their shares or contributions.
3. Incorporation and regulatory framework: A Section 8 company must be registered with the Cabinet of Corporate Affairs (MCA) and require a specific license from the government to operate as a non-profit organization. The company is subject to regulatory oversight under the Companies Act, 2013.
4. No Share Capital: A Section 8 company may or may not have a share capital, but if it has, it is not distributed among the members as shares or profits.
5. Board and governance: Section 8 companies must have at least two directors and a clearly defined board of governance. Their activities must be consistent with their non-profit objectives.
6. Tax Exemptions: Section 8 companies can apply for tax exemptions under sections 12A and 80G of the Income Tax Act, which allow donors to claim deductions for donations made to the organization.
What are the Top 10 Companies Under Section 8 Company in India?
1. Infosys Foundation
2. Reliance Foundation
3. TATA Foundation
4. Reliance Research Institute
5. Federation of Indian Chambers of Commerce and Industry (FICCI)
6. Confederation of Indian Industries (CII)
7. Chamber Of Commerce For International And Indian Trade
8. Pratham Education Foundation
9. Health And Education Foundation
10. India International Trade Centre
To Section 8 Company Registration Contact Our Expert Legal Adviser
1. Infosys Foundation
The Infosys Foundation is the philanthropic arm of Infosys, one of India’s largest IT services companies. Established in 1996, it focuses on supporting initiatives across various sectors.
1. Education: To promote access to education, skill development and scholarships.
2. Health Care: To provide medical care, provide support to hospitals and promote health awareness.
3. Arts and Culture: Protecting India’s cultural heritage and supporting the arts.
4. Rural Development: To help in improving livelihoods in rural areas through sustainable programs.
5. Disaster relief: Offering help during natural disasters.
2. Reliance Foundation
Reliance Foundation is a non-profit organization formed in 2010 by Reliance Industries Limited (RIL). It is the philanthropic arm of Reliance Industries and focuses on various social causes and ethnic development initiatives.
1. Education: To provide teaching education and skill development to the education-less society.
2. Healthcare: Improve access to health services, especially in rural and remote areas.
3. Village Diversification: Supporting sustainable livelihoods and village development projects.
4. Sports: To promote sports development in India and to promote young talent.
5. Disaster relief: Providing emergency relief and recovery assistance during natural disasters.
6. Environment: Working on initiatives related to conservation, climate change and sustainability.
3. TATA Foundation
The Tata Trusts (often known as the Tata Foundation) is the philanthropic arm of the Tata Group, one of India’s largest and oldest conglomerates. Established by the Tata family in the early 20th century, the Tata Trusts have become one of the most important charitable organizations in India. Its main aim is to contribute to social development in various fields.
1. Education: Scholarships and access to quality education.
2. Health care: public health, cancer care and disease prevention.
3. Rural Development: Agricultural Productivity and Water Security.
4. Environment: conservation and sustainability efforts.
4. Reliance Research Institute
The Reliance Research Institute (RRI) can be seen as a dedicated paid institution that operates under the auspices of the Reliance Group, a leading conglomerate in India. Although there is currently no widely recognized organization called “Reliance Research Institute”, such an institution could theoretically focus on areas related to Reliance’s business interests, which do exist.
1. Energy and Sustainability: Advancing renewable energy and sustainable industry practices.
2. Telecommunications: research on 5G, IoT and digital innovations.
3. Health care: innovation in medical research and biotechnology.
4. Environmental Protection: Studies on Pollution Control and Eco-Restoration.
5. Social welfare: research on education, rural development and socio-economic upliftment.
5. Federation of Indian Chambers of Commerce and Industry (FICCI)
The Federation of Indian Chambers of Commerce and Industry (FICCI) is one of the largest and oldest business organizations in India, established in 1927. It plays a vital role in representing and promoting the interests of the business community of India at the national and international levels. Key points about FICCI.
FICCI plays a vital role in shaping India’s economic landscape by promoting business opportunities and addressing challenges in the Indian economy.
6. Confederation of Indian Industries (CII)
The Confederation of Indian Industry (CII) is a leading non-governmental, non-profit, industry-driven organisation in India, founded in 1895. Its mission is to promote economic growth and support India’s development by working with the industry, government and other stakeholders.
1. Policy Advocacy: The industry assists the government in policy-making for development.
2. Business networking: Connects businesses to collaborate and share best practices.
3. Skills Development: Provides training programs to enhance workforce skills.
4. Social Initiatives: Supports health care, education and rural development projects.
7. Chamber Of Commerce For International And Indian Trade
The Chamber of Commerce for International and Indian Business (CCIIT) is an organization that promotes and supports trade between India and international markets. Its main functions are.
1. Trade Facilitation: To assist in market entry and regulation.
2. Advocacy: Representing business interests before policymakers.
3. Networking: Organizing events for business relationships.
4. Research: Providing market insights and reports.
Through these activities, CCIIT works to enhance business and investment opportunities between India and other countries and acts as a bridge between international and Indian businesses.
8. Pratham Education Foundation
Pratham Education Foundation is a non-profit organization based in Mumbai, India, focused on improving the quality of education for children, especially in underprivileged areas. Founded in 1994, Pratham works to increase educational opportunities for children across India, especially in rural and urban underprivileged communities.
Pratham’s work is guided by the vision of providing every child in India with access to quality education and ensuring that they are equipped with the skills and knowledge needed to succeed in life.
9. Health And Education Foundation
A health and education foundation is typically a non-profit organization focused on promoting advancement and education in prevalent health. Such foundations are dedicated to providing support and resources for health maintenance initiatives and educational planning, often with a particular focus on underserved communities or areas with limited access to essential services.
These foundations often work in collaboration with government bodies, NGOs and private partners to achieve their goals. In India, such organizations can be registered as a Section 8 company or trust to gain legal recognition and access to tax exemptions.
10. India International Trade Centre
These foundations often work in collaboration with government bodies, NGOs and individual partners to achieve their goals. In India, such organizations can be registered as a Section 8 company or trust to gain legal recognition and access to tax exemptions.
1. Export promotion through identifying global markets.
2. Trade facilitation through market research and trade regulation.
3. Networking by organizing trade fairs and B2B meetings.
4. Capacity building through training and advisory services.
Conclusion
A Section 8 company is a legal structure that enables individuals or a community to form a non-profit organization focused on a social, educational, charitable or cultural cause. It provides a formal and regulated framework to promote welfare activities, while ensuring that profits are reinvested to further the objectives of the organization. With limited liabilities to its constituents and eligibility for tax exemptions, it provides a strong model for running socially responsible initiatives. However, it requires strict governance and compliance with regulatory norms to maintain its non-profit status. This makes it an ideal choice for entities committed to the public good without the objective of financial gain.
FAQs
What is the meaning of section 8 company?
A Section 8 company is a non-profit organisation that promotes charitable activities, arts, science, education and sports, and profits are reinvested to support these objectives rather than being distributed among members.
What is under Section 8 of the Companies Act?
Section 8 of the Companies Act, 2013 refers to companies that are formed for charitable or non-profit purposes rather than for making profits. These companies, known as Section 8 companies, work for social welfare, education or other charitable work, and the profits are reinvested in their objectives.
Is section 8 company tax-free?
Section 8 companies are exempt from income tax under Section 12A, but any surplus income not used for charitable purposes is taxable.
Is Section 8 a company an NGO?
Section 8 companies are non-profit organisations in India, registered under the Companies Act, 2013 for charitable purposes such as promoting commerce, art, science, religion, charity and other public interests.
What is the minimum requirement for a Section 8 company?
A Section 8 company requires a minimum of two directors and two members to be formed, and there is no requirement for minimum share capital.
What is the income tax rate for a Section 8 company?
The taxation of a Section 8 company is similar to that of other companies, with profits being taxed at 30%. However, if the company is registered under Section 12AA of the Income Tax Act for tax exemption, its profits are completely exempted from tax.
Can a Section 8 company give donations?
Companies under Section 8 can raise donations by running campaigns through social media, advertisements or newspapers. They can also apply for government grants and assistance.
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