Section 8 Company Registration
Get your non-profit company registered quickly with CorpFile’s transparent, step-by-step process.
What is Section 8 Company Registration?
A Section 8 Company is a non-profit organization that focuses on activities like charity, education, art, science, or sports. The primary objective of such companies is to promote these causes, and the profits generated are reinvested back into the mission, rather than being distributed among the company’s members.
If you’re looking to register a Section 8 Company in India, it’s important to understand the legal process, the required documents, and how to comply with regulations.
At CorpFile, we offer comprehensive Section 8 Company Registration Services to guide you through every step. Our team ensures a smooth, hassle-free registration experience, helping you set up your Section 8 Company quickly and efficiently.
Ready to take the first step? Contact us today for expert assistance with your Section 8 Company Registration in India.
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What is Section 8 Company Registration?
A Section 8 Company is a non-profit organization established under the Companies Act, 2013. Its primary objective is to promote social causes such as arts, education, sports, research, charity, environmental protection, and more. Unlike other companies, a Section 8 Company is not focused on generating profits for shareholders. Instead, any profits earned are reinvested into furthering the company’s goals. It does not distribute dividends, ensuring that the focus remains on societal development.
In simple terms, a Section 8 Company Registration allows individuals to create a legal entity that serves a charitable or social cause, making a positive impact in areas like welfare and environmental conservation.
Overview of Section 8 Company Registration
A Section 8 Company is a non-profit organization established under the Companies Act, 2013. Its primary objective is to promote social causes such as arts, education, sports, research, charity, environmental protection, and more. Unlike other companies, a Section 8 Company is not focused on generating profits for shareholders. Instead, any profits earned are reinvested into furthering the company’s goals. It does not distribute dividends, ensuring that the focus remains on societal development.
In simple terms, a Section 8 Company Registration allows individuals to create a legal entity that serves a charitable or social cause, making a positive impact in areas like welfare and environmental conservation.
Key Aspects of the Section 8 Company Act in India
In India, NGOs can be registered either under the Registrar of Societies or as a non-profit entity under the Section 8 Company Registration of the Companies Act, 2013.
One important point is that any profit earned by Section 8 Companies cannot be used for personal gains. It must solely be directed towards the charitable objectives of the company, and cannot be distributed among the shareholders.
Section 8 Companies are essentially the modern version of the old Section 25 Company from the Companies Act, 1956. They are now recognized under the Companies Act, 2013, as Section 8 Companies.
Like any other company, Section 8 Companies must comply with the provisions of the Companies Act, 2013. This includes maintaining accurate books of accounts, filing returns with the Registrar of Companies (ROCs), and adhering to relevant regulations under the GST and IT Acts.
Moreover, any changes made to the company’s charter documents, such as the Articles of Association (AoA) or Memorandum of Association (MoA), require prior approval from the government.
Key Benefits of Registering a Section 8 Company in India
Incorporating a Section 8 Company in India comes with several distinct advantages, making it an ideal choice for those looking to run a non-profit organization. Here are some of the key benefits:
Tax Exemption
One of the major benefits of a Section 8 Company Registration is the tax exemption. As per Section 12AA of the Income Tax Act, companies formed for charitable purposes can enjoy a 100% tax exemption, meaning the profits generated are not taxable when used for their social or charitable cause.
No Minimum Capital Requirement
Unlike other company structures, Section 8 Company Registration in India does not require a minimum capital investment. This flexibility allows you to start and grow your organization without worrying about meeting capital requirements.
Separate Legal Identity
A Section 8 Company is a separate legal entity, which means it has its own identity, distinct from its members or founders. It can own assets, enter contracts, and perform other legal activities, providing more security and credibility.
Increased Credibility
Being subject to rigorous legal compliance, a Section 8 Company enhances its credibility over other non-profit organizations like trusts and NGOs. The strict regulations ensure that such companies are well-trusted and recognized by both the government and the public.
No Title Requirement
Unlike other entities, Section 8 Companies are not required to add “Section 8” in their company name. This gives your organization the freedom to choose a name that reflects its mission or vision, offering greater flexibility in branding.
A Section 8 Company offers many advantages, including tax exemptions, no minimum capital requirement, separate legal standing, and greater credibility. These benefits make Section 8 Company Registration with CorpFile a perfect choice for those wanting to establish a socially driven organization.
Eligibility for Section 8 Company Registration
To incorporate a Section 8 Company in India, certain criteria must be met to ensure that the company serves its intended social purpose.
- Eligible Entities: Only an Indian national or a Hindu Undivided Family (HUF) can form a Section 8 Company.
- Directors: The company must have at least one director to begin the registration process.
- Purpose: The primary objective of the company must focus on promoting social welfare through activities such as:
- Arts and culture
- Science
- Sports
- Charitable services
- Education
- Providing financial support to individuals from lower-income groups
These eligibility requirements ensure that the Section 8 Company operates to benefit society and contributes to the greater good.
If you are looking to establish a Section 8 Company for your non-profit venture, CorpFile can help you through the entire registration process.
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Legal Requirements for Section 8 Company Registration
Before you apply for the Section 8 Company Registration process in India, certain legal criteria need to be met. These are essential to ensure your company operates in compliance with the law.
Number of Directors
To register a Section 8 Company, you must have a minimum of two directors if you plan to operate as a private limited company. However, if you aim to function as a public limited company, you’ll need at least three directors.
Number of Members
For a private limited Section 8 Company, the Ministry of Corporate Affairs (MCA) limits the number of members to 200. But, there’s no cap for Section 8 Companies set up as public limited companies.
Capital Requirement and Company Name
One of the benefits of Section 8 Company Registration in India is that no minimum paid-up capital is required. Also, Section 8 companies do not have to include terms like “private limited” or “limited” in their company name.
Company Objectives
To qualify for Section 8 Company Registration Services, your company must have non-profit objectives. These goals must be clearly mentioned in the Memorandum of Association (MOA) and Articles of Association (AOA). Any profits made by the company should be reinvested for charitable purposes or used to further the company’s goals. Importantly, profits cannot be distributed to members.
By meeting these legal requisites, Section 8 Companies can ensure they are operating transparently and are dedicated to promoting social causes.
Essential Documents for Section 8 Company Registration
To successfully register your Section 8 Company in India, you will need to provide the following documents:
- Articles of Association (AOA) and Memorandum of Association (MOA)
- Declaration by the first director(s) and subscriber(s) (an affidavit is not required)
- Proof of office address, such as a copy of utility bills (electricity, water, or gas bill)
- Copy of the certificate of incorporation (COI) of an overseas corporate body (if applicable)
- A resolution passed by the promoter company
- Consent of Nominee (INC-3)
- Residential and identity proof of nominees and subscribers
- Applicant’s identity and residential proof
- Digital Signature Certificate (DSC)
- Declaration of unregistered companies
By submitting these documents, you ensure a hassle-free and smooth Section 8 Company Registration process with CorpFile.
Section 8 Company Incorporation Process in India
Incorporating a Section 8 Company in India involves a few straightforward steps. Here’s how you can go about it:
Step 1: Obtain Digital Signature Certificate (DSC)
The first step is to obtain a Digital Signature Certificate (DSC) for the proposed directors. This is required for filing documents online with the Ministry of Corporate Affairs (MCA). Form DIR-3 should be filed along with the DSC of the directors.
Forms to be used: DIR-3, DSC
Step 2: Obtain Director Identification Number (DIN)
Once you have the DSC, the next step is applying for a Director Identification Number (DIN). This unique number is issued by the MCA for anyone who wants to be a director in a company.
Forms to be used: DIR-3
Step 3: Reserve the Company Name
The next step is to reserve your company’s name with the MCA. The name should be unique and not resemble any existing companies. This can be done using Form INC-1.
Forms to be used: INC-1
Step 4: File the Application for Incorporation
Once your company name is approved, the next step is to file the application for incorporation. The application is done through Form INC-32, along with the company’s Memorandum of Association (MOA) and Articles of Association (AOA).
Forms to be used: INC-32, MOA, AOA
Step 5: Obtain a License for Section 8 Company
After your application is processed, you will need to obtain a license for your Section 8 Company. Form INC-12 is used to apply for the license, which should be filed with the required documents.
Forms to be used: INC-12
Step 6: Obtain a Certificate of Incorporation
After receiving the license, the MCA will issue a Certificate of Incorporation in Form INC-16. This confirms the legal formation of your Section 8 Company.
Forms to be used: INC-16
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Donations and Funding for Section 8 Companies
A Section 8 Company can’t raise capital through deposits, but it can accept donations. There are various ways to secure funding:
- Foreign Donations: These are allowed only if you have FCRA registration, which can be applied for three years after incorporation.
- Equity Funding: You can issue new equity shares at a premium to raise funds.
- Domestic Donations: These are permitted without restrictions, but ensure you have proper systems in place to avoid money laundering.
By understanding the process and funding options, you can effectively establish and run a Section 8 Company in India.
Simplify Your Section 8 Company Registration with CorpFile
At CorpFile, we make Section 8 Company Registration in India easy and hassle-free. Our expert team supports you every step of the way, ensuring all legal requirements are fulfilled for a smooth and quick registration process. Whether you’re starting a non-profit for social welfare, education, or charitable purposes, we provide the guidance you need to set up your Section 8 Company efficiently.
With CorpFile, you’ll receive professional assistance in document preparation, filing, and approval, allowing you to focus on making a positive impact.
Start your journey today with Section 8 Company Registration from CorpFile.