What is a Section 8 Company in India?
Let us first take a look at Section 8 Company Definition.
A Section 8 Company means a business entity associated to a Non Profit organization. Unlike other business entities, the purpose of a Section 8 company is not to generate profit. But rather, the purpose of this business entity is to promote charitable causes that involve science, culture, education, religion etc.
The profits earned by a NGO Company (Section 8 Company) are directed towards these purposes, not paid as dividends among its members. As a business entity, the Section 8 Company Registration is done under the Companies Act 2013.
So, to put it is simple, it is a company under section 8 company the Companies act. And being a company registered under section 8, it has many benefits that only come into picture once you start the incorporation process.
What is Section 8 Company Registration?
Sec 8 Company Registration is the process to incorporate a company under the Companies Act, 2018. the NGO Section 8 Company registration will allow you to establish a section
What are section 8 companies?
These are NGOs whose objectives it is to help as many people as possible.
After Section 8 Company incorporation, its structure would feel similar to an NGO, a trust or a Society. However, unlike the Society Registration, the NGO Registration that is Section 8 Company formation is dictated by the Companies Act.
Therefore, it is the MCA that is responsible for the formation of this type of company.
Why you should register a section 8 Company?
There are several benefits associated in incorporating a section 8 company and they are as follows. You can also consider them as Section 8 Company features:
- There are several exemptions that the company Law. This is one of the business section 8 company benefits.
- There is no minimum paid up capital required. Therefore, you can guess one of the benefits of section 8 company is that you can set it up even if you don’t have money.
- The section 8 company objectives must be to promote social welfare activities. Furthermore, keep in mind that there are no directives of a state. Thus, the rules of NGO registration in Delhi are same as everywhere else in India.
- There is no requirement of a stamp duty.
- Under the income tax act, there are certain tax deductions given to a Section 8 company.
- A section 8 company has clear objectives that allow them to gather donations easily.
- It can be managed easily due to several privileges that it is given.
- As this entity is a company, a section 8 company minimum member count is 2 directors and 2 shareholders. It is an important infrastructural aspect that you must fulfil to get NGO registration under section 8.
But what do these benefit even mean? Thankfully, our approach to Sec 8 Company registration relies on first making you aware of these perks.
Companies registered under section 8 company are different from the rest. Existing as business entities, their main purpose to promote social welfare – as aspect that has
Eligibility Criteria for Section 8 Company Incorporation in India
So, who can form a Section 8 Company? The answer is anyone. However, there are some regulatory criteria that you must first take care of.
Thus, before you start the incorporation of Section 8 Company, you have to meet the following eligibility criteria:
- The objective of the section 8 company should be to promote commerce, science, education, sports, religion, charity, social welfare and other altruistic causes. Therefore, before you incorporate a section 8 company, you must have clarity about the causes you wish to get behind.
- The name of the Section 8 Company should be unique. Therefore, it is advised that the applicants check the NGO name availability before proceeding.
- The profits earned by the section 8 company are to be used in the promotion of the mentioned causes
- Profits of a section 8 company aren’t to be shared as dividend among the directors.
- After incorporation, you have to agree to follow the section 8 Company compliances, for that’s the only way to maintain the status quo of your business entity.
Documents Required for Section 8 Company Registration in India
Following are the documents required for company incorporation for each director/ shareholder to proceed with section 8 company registration online.
For Directors/Shareholders, the section 8 Company Registration Documents are as follows:
- Copy of PAN Card
- Identity Proof (Voter Card, Passport, Driving Licence)
- Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill)
- Passport Size Photo
For Registered Office, the Section 8 Company documents are as follows
- Ownership Proof (Electricity Bill, Gas bill, Electricity Bill, Mobile Bill)
- NOC (Download Format)
Make sure that these section 8 company incorporation documents are uploaded in the correct format during the application process.
What is the Section 8 Company Registration process?
Once you have these documents, how to incorporate section 8 company? Here is the answer.
The procedure for incorporation of section 8 Company under spice involves the following steps, and none of them should be ignored at any time.
Choose the right Section 8 Company Name: First step of the section 8 company registration procedure is this - you need to decide a good name for your company. The Section 8 Company name rules are relaxed when you compare them to other limited business entities.
For instance, you don’t need to use the name “Section” or “8” or “Company” anywhere in your name. But if you want help, you can refer to our section 8 company name suggestions.
Furthermore, it is always better to ensure the uniqueness of a name by checking the Section 8 Company name availability. Our section 8 company name search can also help in this regard.
Make sure that you follow the rules of sec 8 of companies act. However, make sure that you choose the words federations, authority and others as the Section 8 Company Suffix.
Get the DSC of the directors of your company: The second step of the answer to your question – how to register section 8 company in India – is to get the Digital Signature Certificate. An important step in the formation of section 8 company, this is the process that will help with the authentication of the documents that you upload online.
Draft an MOA of Section 8 Company: MOA refers to Memorandum of Association. It is filed using INC 13 using Section 8 Company. It is the document that details the information about the directors, the shareholders and the objectives of the section 8 company. For instance, if your purpose is to educate, the moa of section 8 company for education should specify that your goal is to promote education.
Draft an Articles of Association: The Section 8 NGO should adhere to specifics rules and regulations. The documents that details those is the Articles of Association.
Fill INC 15: File a joint declaration via Form INC 15 for Section 8 Company. Here, you will declare that all the points mentioned in the Section 8 company MOA are according to the provisions of the section 8 regulations set by the MCA.
Fill INC 14: All the directors of your Section 8 NGO must also file individual declaration via FORM INC 14 for Section 8 Company. They have to individually declare that their roles are clearly defined clearly in Memorandum of Association.
Furnish the remaining documents and fill the online application: The final step of this process is to obtain the certificate of incorporation. And for that, you need to submit the application for section 8 NGO registration online. The portal that facilitates Section 8 India Registration is hosted by Ministry of Corporate Affairs.
Fill the application form: Start filling up the application form for Section 8 company registration online. Make sure that all the details you provide align with the ones mentioned in the rules of Section 8 Non Profit Company.
Also, ensure that you make completely assessed the Section 8 AOA and AOA before entering their details to the application form.
MCA section 8 company rules are pretty strict when it comes to the documents. So pay a thorough attention beforehand.
Get the certificate of incorporation: If the Registrar of Companies accepts your Section 8 company registration form, it will get your company licensed under Section 8 of the company registration act.
As an NGO under section 8 of the companies, you will get access to many benefits from this point forward.
For the incorporation of section 8 company under Companies Act 2013 of MCA has provides special timings. Thus, you can obtain the certificate of registration on time.
As for the Section 8 Company Registration Charges, it would depend upon your stamp duty.
Even if the way to register a section company is online, it does not mean that it is easy to acquire.
This Section 8 Company procedure, in the right hands, won’t take more than week to complete. However, the operative words here are the right hands.
Registering a section 8 company in India under Companies Act 2013 isn’t an easy task for everyone. That’s where, our NGO registration consultant step in to help you. We deliver end to end assistance to register section 8 Company online in India.
Our Assistance in Section 8 Company Registration in India
We, at Avs complinace provide end to end solutions for Section 8 company registration in Delhi and the rest of India. It is because we know all about section 8 company registration in India, down to the minute details. That knowledge helps us in providing you the following services:
- Meeting the initial Section 8 company requirements
- Company name research
- Obtaining DSC and DIN
- MOA and AOA drafting
- Application filing
- Following up with the Ministry of Corporate Affairs
If you want to help people and work for the betterment of society, you should choose Section 8 company registration. The process of its formation is not easy but with the help of UST Associates, it can be made easy. Our company registration experts make prospect of Section 8 company incorporation easy for you and at low cost. Contact our experts and we shall begin with section 8 incorporation.
Frequently Asked Questions - FAQs
To procedure for registration of Section 8 Company is as follows:
- Choose a name of a good NFO under section 8
- Get approval for that name
- Draft an AOA for a section 8 company
- Draft and MOA for the section 8 company NGO
- Fill the section 8 company registration form
- Get the Company Incorporation certificate for a Non Profit Company Section 8
Here is the Section 8 Company Incorporation Checklist:
- ID proof of the directors and members
- PAN card of the directors and members
- Memorandum of Association
- Articles of Association
- Digital Signature Certificate of the Director
- DIN of the director
- Address proof of the registered office of a company
No. A Section 8 company cannot be listed since its purpose is to not to generate profit – an aspect a listed company has to adhere to.
There must be at least two directors in a section 8 company.
Section 8 Company ITR form to file tax returns is ITR-7. This ITR form for Section 8 Company must be filled up and submitted to the Income Tax Department on an Annual basis.
A section 8 company doesn’t have a concept of dividend since all the profits it generates are poured into the pursuing the tasks mentioned in the Section 8 Company Object Clause.
Yes, Section 8 Companies are private limited companies registered under the Section 8 of the Companies Act, 2013.
Following is the Section 8 Company compliance Checklist:
- Appointment of an Auditor: ADT-1
- Maintenance of Section 8 Company financials: Section 8 Company Balance sheet and other details.
- Maintaining the statutory registers
- Conducting statutory Section 8 Company board meeting
- MGT 7 for Section 8 Company Annual Compliance form
- Income tax return filing
- AOC $ Section 8 Company – Filing of financial statements
- Director’s Account
A Section 8 Not for Profit Company is an entity that exist to help people. Therefore, the government has provided it several exemption. However, to avail them, an 80G registration for Section 8 Company is important along with 12A Registration. Exemption range from taxation of Section 8 Company .
Yes, a section 8 company is indeed a company – a business entity whose purpose is not to generate profit, but goodwill among people who need help.
11. How to close Section 8 Company?
To enable Section 8 Company winding up, you must relinquish your license that allowed you to operate as a Charitable company.
