Section 8 Company Registration

A Section 8 Company is related to endorsement of religion, social welfare, charity, science, art, research, education, sports, protection of the environment, and other similar entity. The sec 8 company formation proposes to implement entire income, earning, and profit in promoting these entities.

There is no clause of income and or dividend to its members. These companies are considered limited companies due to their registration under the Companies Act. They will be regarded as a limited company but without the name “limited” addition to their name. These companies can be registered under public limited and private limited companies.

Section 8 Companies are legal entities for Non-Governmental organizations (NGOs) or Non-Profit Organizations (NPOs). Section 25 Company (under Companies Act, 1956) is an earlier form legal entity to the same objects. Section 8 Company has the authorization to work everywhere in the nation. The Section 8 company registration gives you many advantages.

Get A Support To Start For section 8 company registration


The income earned by NPO can’t be used to pay out dividends to the company’s members and needs to be used for promoting charitable objectives only. These companies need to obtain an incorporation certificate from the central government and have to adhere to all the rules mentioned by the government to start with the section 8 company registration procedure.

The key objective of Section 8 Company Registration

The objective of Section 8 Company mandatory is the promotion of Charity, Welfare, Protection of Environment, Commerce, Sports, Social, Religion, Research, Education, Art, Science, or any such subsequent entities.

Section 8 company registration Key points

  • Section 8 Company has no Minimum Capital requirement.

  • The donors of a Section 8 company can avail of the benefits of tax rebate under Section 80G and 12A of the Income Tax Act.
  • Section 8 Organizations are more trustworthy as compared to other types of charitable organizations. They are firmly controlled and regulated by the Companies Act. For example, the need for a compulsory yearly audit, AOA, and MOA can ever be modified for any reason.
  • A Section 8 registered company is free from paying any stamp duty as compared to other forms of company.

Eligibility to Apply for Section 8 Company: Register Section 8 Company

An individual or an association of individuals can apply for company registration under section 8 in case they meet the criteria. Also, the objective of the company must be confirmed to the satisfaction of the Central Government.

  • When the company wants to promote science, commerce, education, art, sports, research, religion, charity, social welfare, protection of the environment, or alike other objectives.
  • When the company aimed at investing all the profits (if any) or any other income generated after incorporation for promoting such objects only.
  • When the company doesn’t want to pay any dividend to its members. It doesn’t allow any payment of dividends or income to its members.
  • Section 8 Company is for those who don’t want to generate profitable revenue from the company. Even all the income, funds and profit applied to some portion of social structure.
Section 8 company registration

Documents needed for the Section 8 Company formation

The list of the documents required for section 8 company registration includes:

  • Digital Signature Certificate
  • Memorandum of Association
  • Articles of Association
  • Passport Size Photographs
  • Members’ ID card like Aadhar Card, Passport, Voter ID, etc.
  • Details of Director
  • Address proof
  • irector Identification Number

Advantages of Section 8 company Registration

Procedure to Register a Section 8 Company in India

The procedure for registration of a section 8 company in India is:

  • The first and foremost step for Section 8 company registration is to make DSC. Section 8 companies must contain words such as Foundation, Society, Association, Council, Club, charities, Academy, organization, Federation, Institute, etc.
  • After that fill out Section 8 Incorporation Forms on MCA Portal. Post getting all the clarifications, the ROC will issue a Certificate of Incorporation along with a Company Identification Number (CIN) as a part of sec 8 company incorporation.
  • Post getting the License, it is important to draft the MoA and AoA to file section 8 company registration applications.
  • Keep your PAN, TAN and bank account ready while doing Section- 8 Company registration in India.

Advantages of Section 8 Company Registration

There are various perks to register a NGO or NPO as per the Section 8 of Companies Act 2013.

Some of them are as follows:

Name

The best part of Section 8 Company is that you don’t have to use suffix Limited or Private Limited to its registered name. You can register section 8 company with words containing Federation, organization, Institute, Academy, Association, Society, Club, Charities, Council and Foundation

No minimum capital

There is no minimum capital requirement for doing Section 8 Company Registration in India. Moreover, the Capital Structure of Section 8 Company can be modified at any stage depends upon the needs of the organization. It clearly shows that this type of company can be registered and formed without the help of any capital investment. The necessary funds can be obtained through donations, subsidies, and charity from the general public and other organizations.

Tax Benefits

There are various tax advantages under Section 8 Company Registration in India.

No Stamp Duty

There is no stamp duty on the establishment of Section 8 Company in India as it is not in the favour of the payment of stamp duty on the MoA and AoA of the Pvt. Limited Firm.

Separate Legal Identity

Section 8 Company registration has a separate legal entity and it requires a distinct legal identity from its members. Registering a Section 8 company means you have availed a distinct legal identity. It means that it has a different identity other than its members. The company has permanent existence along with having structured functions and flexibility.

Membership

An incorporated partnership company can become a member of its person capacity and acquire Directorship.

Credibility/ Goodwill

Section 8 Company has more credibility than any other kind of a charitable organization. Section 8 company is under the strict provision of the Companies Act requiring a compulsory audit annually.

Exemption to donators

According to the Section 80G, the exemption is given to the donators in case the section 8 company is registered as per the section 80G.

Some other benefits for the Incorporation of Section 8 Company

  • By establishing the section-8 company, the intention must be to do any activity beneficial for the society and obtain integrity and commitment.
  • The reliability of section 8 company is more related to the communities and the extra charitable firms.
  • As per the communities of trust, grants and subsidies via the government and the additional institutions are considered by the section-8 company.

Annual Compliances for Section 8 companies – Companies Act 2013

As per the Companies Act 2013, the annual compliances of section 8 company are written below:

  • Organizing at least 2 board meetings in a year.
  • Maintenance of Books of Accounts
  • Preparation of Financial Statements
  • Mandatory Audit
  • Income tax return filing
  • Filing of financial statements under AOC 4
  • An annual return needs to be filed annually with other e- filing forms like MGT 7.
  • Additional compliances to meet the registration process like 12AA, 80G etc.
How Valcus Pvt. Ltd. Process Section 8 Company Registration

Valcus private Limited Company is an expert in registering the company, CA services, legal services, and all that. We are here to render entire work related to the company registration and subsequent operation. Our team comprises legal experts, Chartered accountant, tax consultants, and others. Valcus Pvt. Ltd. aim at helping you with all things associated with company registration. We follow a simple process in Section 8 Company Registration in India.

  • Get connected with our experts and convey your requirements to them in a detailed manner. For the same, you can visit our office and submit the relevant documents.
  • We help our customers to fill the form with correct details so there remains no chance of rejection of the application.
  • Our team makes sure that the registration application are filled properly and submitted with authentic documents to the concerned department.
  • Once your registration is approved from the government, we hand over the registration of certificate.
  • We give support and service even after the work gets completed from our side.
Frequently Asked Questions

At least two people are needed to register a section 8 company in India.

A company is known to as a Section 8 Company on getting registered as a Non-Profit Organization (NPO). The company will be referred to as a Section 8 company when its agenda is to promote arts, commerce, education, charity, protective of the environment, sports, science, research, social welfare, and religion and aims to use the profits to promote these objectives.

The Director must be at least 18 years of age and must be a natural person. There are no limitations regarding citizenship or residency so even foreign nationals can be Directors in an Indian Section 8 Company.

No, there is no need to be present at our office or appear at any office for the registration of a Section 8 Company. All the documents must be scanned and sent via email to the registered office. Some documents needs to be couriered to the office and all the processes related to section 8 company registration processes will be completed by then.

To complete the process for incorporation of section 8 company, the list of the documents includes:
· Identity proof
· Address proof (mandatory for all the proposed Directors of the Section 8 Company)
· PAN Card (mandatory for Indian Nationals)
· A NoC provided by the landlord
· Identity proof and address proof

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company under sec 8 company registrations. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number doesn’t expire and a person can have only just a single Director Identification Number.

Following are the purpose of the Section 8 Company Registration in India and for doing the registration of section 8 company NGO:
1. Education
2. Poverty
3. Disease
4. Blood bank
5. Environment protection
6. Other objects for general public utility

For the detailed information on procedure for registration of section 8 company in India, you can get in touch with our experienced professionals at Valcus in India.

The experts at Valcus have proven experience in company registration. We have experience in sec 8 company registrations and expertise in registration of all type of business structure.

If you hire Valcus Pvt Ltd as a consultant for Section 8 and other forms of company registration you will get several benefits apart from committed service and a low service charge.