Section- 8 Company Registration in India

Our Section 8 Company Registration Package makes establishing your non-profit organization quick, easy, and affordable. It allows you to pursue your social mission without the hassles of complex registration procedures..

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Section- 8 Company Registration in India

An Overview of Registering a Section 8 Company in India

A Section 8 Company operates for the promotion of commerce, art, science, sports, charity, environmental protection, or other welfare objectives specified in its subsections (1a), (1b), and (1c). It operates under the condition of utilizing its profit or other income solely for promoting its welfare purpose, without being liable to provide dividends to its members.

If you are running a Section 8 Company, it means:

  • At least 2 Directors are required (7 members for a Public Limited Company), who must be Indian citizens or residents. Foreign Nationals can also serve as Directors, requiring submission of their Passport information during Company Registration.
  • These companies operate under the regulations of Limited Companies without the use of the phrase 'Limited' in their name, necessitating a Special License under the regulation of the Ministry of Corporate Affairs (MCA).
  • They can be registered as either a Private Limited or Public Limited Company.
  • You have the opportunity to serve the community through funds and volunteer work.
  • This company can operate anywhere in the country.
  • It has the authority to work and belongs to the legal units category of NPOs (non-profit organizations) or NGOs (non-government organizations).

Key Benefits of Registering as a Section 8 Company

  • A Section 8 Company is a separate legal entity, able to earn profit or income that must be distributed for social welfare. It operates under the rules and provisions of Private or Public Limited Companies.
  • These companies are more reliable than other charitable trusts because they are governed by the defined regulations of the Companies Act.
  • They enjoy significant tax benefits.
  • Donations made to these companies are eligible for tax benefits.
  • There is no minimum capital limit for registering as a Section 8 Company.
  • No Stamp Duty is required for MOA/AOA registration for a Section 8 Company.
  • These companies receive maximum subsidies from the government.
  • Compared to trust/society registrations, they offer higher transparency in their operations.
  • The Companies Auditor’s Report Order (CARO) is not applicable.
  • Registered Partnership Firms can become members in their individual capacity and serve as directors.

Building Your Section 8: A Guide to Required Documentation

1. Copy of PAN CARD of directors (Mandatory)

2. 2 Passport size photographs of directors (Mandatory)

3. Nationality proof of directors, if he/she is a foreign national

4. Company details, such as a short company description, location of the registered company office, etc. (Note: For a Section 8 Company, they should have an address of its registered office.)

5. Copy of Voter ID Card/Aadhaar Cards and Address proof of directors and shareholders (Mandatory)

6. Contact details of directors, such as electricity bill, telephone/mobile bill, email, etc.

7. Sheet of MOA and AOA

8. Address proof of the business space. If you own the business space, property papers

9. Landlord NOC, in case the business space is rented

10. Latest Electricity/Water Bills of business space

Service Includes

  • DIN for 2 Directors
  • Memorandum of Association and Article of Association (MOA/AOA)
  • Digital Signature (DSC) for 2 Directors
  • Name search & Approval
  • Issue of incorporation certificate (CIN)
  • Registration Fees
  • Company PAN
  • Company TAN

Registration Process for a Section 8 Company

  • Ensure compliance with minimum company requirements, including the number of directors, company office address, and authorized capital. Provide director’s basic details, such as Full Name, Email, and Phone number.
  • Apply for DSC (Digital Signature) & DIN (Director’s Identification Number). We'll assist you in registering these essential documents.
  • Submit a Name Approval Application and complete verification. Note that a Section 8 Company's name does not require 'Private Limited/Public Limited' after its name. We'll collaborate with you to finalize and successfully register this document.
  • Apply for a License for the Section 8 Company (as Form INC-12 as per the Companies Act, 2013) from the Government of India. We'll guide you through the submission and acquisition process.
  • Submit the Memorandum Of Association (MOA) & Article Of Association (AOA). We'll work based on the provided documents to complete this submission, usually attached along with the Section 8 Company License Application.
  • Receive the Certificate Of Incorporation from the Registrar of Companies after all the required documents are successfully registered, and the processing fee for Section 8 Company Registration is deposited.
  • Congratulations! Your Section 8 Company Registration is complete. You can now apply for PAN, TAN, and a Bank Account in the name of your Section 8 Company.

Frequently asked questions

A Section 8 Company is a non-profit organization established under the Companies Act, 2013. It focuses on promoting social welfare activities like art, science, charity, environmental protection, and more. Unlike traditional companies, Section 8 Companies cannot distribute profits to their members.

A Section 8 Company offers several advantages, including functioning as a separate legal entity, thereby safeguarding personal assets from liabilities. It has the potential to generate income to fulfill its social objectives, enhancing credibility through regulated operations. Additionally, it enjoys lucrative tax benefits, attracting donations with tax deductions for donors. Registration is cost-effective, with no minimum capital requirement and reduced fees due to exemption from stamp duty on MOA and AOA registration. Section 8 Companies may also receive increased government support through subsidies. Moreover, they offer flexible membership, allowing registered partnership firms to participate as members and directors, while audits may be streamlined with the exemption of the Companies Auditor's Report Order (CARO).

For a Section 8 Company, the minimum requirements include having at least one shareholder, typically the promoter initiating the company's formation. Additionally, there must be a minimum of one director, who can also serve as the shareholder. Unlike some other types of companies, there is no stipulated minimum share capital requirement for a Section 8 Company, offering flexibility in the initial financial setup. While not mandatory, appointing a nominee director is advisable to ensure continuity and effective governance, although it remains optional.

Yes, following a specific legal process outlined in the Companies Act, a Section 8 Company can convert into a for-profit company.
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