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Section 8 company registration Packages

STANDARD

₹ 18999/- (All Inclusive)
  •  
  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • Name Approval
  • Stamp duty in INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe+
  • Copy of e-MOA & e-AOA
  • e-PAN
  • e-TAN
  • ESIC Registration through SPICe Plus
  • PF Registration through SPICe Plus
  • Bank Account opening (feature)through SPICe Plus
  • Section 8 License

ENHANCED

₹ 24999/- (All Inclusive)
  •  
Popular
  • Everything in STANDARD +
  • MSME Registration
  • Trademark Application ( 1 class 1 application) (start ups, proprietorship and small business)

PREMIUM

₹ 39999/- (All Inclusive)
  •  
  • Everything in ENHANCED +
  • 1st Income Tax filing upto turnover of Rs. 20 Lakhs
  • 1 Year TDS Filing upto 500 entries
  • 1st Annual Filing upto turnover of Rs. 20 Lakhs
  • 25 copies of MOA
  • 25 copies of AOA
  • 10 Copies of Share Certificate
  • Company Seal
  • Form ADT 1 ( Auditor Appointment in AGM)
  • Form AOC -4 (Form for filing financial statement and other documents with the Registrar)
  • Form MGT -7 (Form for filing annual return by a company)
  • 2 DIR 3 e-KYC of 2 Directors
  • Accounting and Book Keeping (up to 50 transactions)

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Section 8 company registration India

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The central aim behind the registration of a company under the classification of a Section 8 Company is to foster non-profit endeavors encompassing areas such as trade, commerce, arts, philanthropy, education, religion, environmental conservation, social welfare, sports research, among others.
The incorporation of a Section 8 Company necessitates a minimum of two directors. Furthermore, there exists no obligatory demand for a minimum paid-up capital for a Section 8 Company.
Within India, a not-for-profit entity can be officially registered either as a Society under the Registrar of Societies or as a Non-profit Company operating under the purview of Section 8 within the framework of the Companies Act of 2013.
Any profits generated by this company, if indeed realized, are dedicated to furthering the organization’s objectives rather than being distributed as dividends to its shareholders.
The nomenclature “Section 8 Company” denotes the contemporary equivalent of what was formerly known as the “Section 25 Company” under the provisions of the Companies Act of 1956. The transition from Section 25 to Section 8 took place with the advent of the new Companies Act in 2013.

Who are eligible for registering section 8 company?

Eligibility to apply for registration as a Section 8 company in India is determined by the provisions of the Companies Act, 2013. The following entities or individuals are typically eligible to apply:

An individual, Hindu Undivided Family (HUF), or a limited company is eligible to initiate the registration process for a Section 8 company in India.

Any group consisting of two or more individuals who will hold roles as shareholders or directors within the company must ensure complete adherence to the requisites and obligations associated with Section 8 Company registration.

It is imperative that at least one of the appointed directors maintains a residential status in India. Nevertheless, a partnership firm is permitted to be a member of a company established under this particular section.

The primary objective of the Section 8 company should revolve around the advancement of sports, social well-being, the progression of science and art, education, and extending financial support to economically disadvantaged groups.

The surplus funds generated by the company should be exclusively allocated for fulfilling the principal objectives outlined for the Section 8 company.

The founders, members, and directors of the company are prohibited from receiving any form of remuneration, whether in monetary or non-monetary terms.

Distribution of profits among the members and directors of the company, either directly or indirectly, is strictly forbidden.

The company is required to possess a well-defined vision and a comprehensive project plan outlining its activities and objectives for the forthcoming three years.

Detailed Procedure

The detailed procedure for registering a Section 8 company in India involves several steps and compliance requirements. Here is a comprehensive outline of the process:
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Obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN)
- Apply for DSC: The proposed directors of the company need to obtain DSC from certifying agencies authorized by the Controller of Certifying Authorities (CCA).
- Apply for DIN: Each proposed director must apply for a DIN by filing Form DIR-3 with the Ministry of Corporate Affairs (MCA).
Name Reservation and Approval
- Choose a unique name for the Section 8 company that complies with the guidelines specified by the MCA. - Check the availability of the proposed name through the MCA's online portal or by filing Form INC-1.
- Once the name is approved, it will be reserved for 20 days.
Draft Memorandum of Association (MOA) and Articles of Association (AOA)
- Prepare the MOA and AOA, which outline the objectives and regulations of the Section 8 company.
- Ensure the clauses in the documents align with the provisions of the Companies Act, 2013.
License Application
- Prepare Form INC-12: This form is required for obtaining a license for a Section 8 company. Provide details such as the company's name, registered office address, objectives, and a declaration by the proposed directors.
- Attach the necessary documents, including the MOA, AOA, and other required declarations.
- Submit the application along with the prescribed fee to the Registrar of Companies (RoC).
RoC Review and Approval
- The RoC will review the application and associated documents.
- The RoC may request additional information or modifications if necessary.
- Once satisfied, the RoC will issue the license for the Section 8 company.
PAN and TAN Application
Apply for the company's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
Post-Incorporation Compliance
- Open a bank account in the company's name and deposit the required share capital.
- Obtain necessary registrations, such as Goods and Services Tax (GST) registration, if applicable.
- Maintain proper books of accounts and comply with annual filing and reporting obligations.

Documents Checklist

The registration of a Section 8 company in India requires the submission of several documents. While the specific requirements may vary based on the jurisdiction and the unique circumstances of the company, here is a general checklist of documents typically required for the registration process:

Identity and Address Proof

  • Copy of PAN card or Passport (for Indian nationals)
  • Copy of Passport (for foreign nationals)
  • Copy of Aadhaar card or Voter ID card
  • Copy of Driver's License or any other government-issued identity proof
  • Address proof (electricity bill, telephone bill, bank statement, etc.)

Proof of Registered Office Address

  • Copy of lease agreement or rent agreement (if the office is rented)
  • Copy of the property deed or ownership documents (if the office is owned)
  • No Objection Certificate (NOC) from the property owner

Memorandum of Association (MOA) and Articles of Association (AOA)

  • Drafted MOA and AOA of the proposed Section 8 company

Declaration and Affidavit

  • Declaration by the proposed directors and shareholders on non-conviction and non-disqualification
  • Affidavit verifying the application for incorporation

List of Directors

  • Consent to act as a director from each proposed director
  • Details of directors such as name, address, occupation, and DIN

Application Forms

  • Form INC-12: Application for obtaining a license for a Section 8 company
  • Form DIR-3: Application for Director Identification Number (DIN) for proposed directors
  • Form INC-1: Application for name availability, if not applied online

Other Documents

  • Demand Draft or online payment receipt for the prescribed fees
  • Power of Attorney or board resolution (if applicable)

Merits of section 8 companies registration

Legal Recognition

A section 8 company is a legal entity that is recognized under the companies act, 2013.

Nonprofit Status

As a non-profit organization, Section 8 companies are exempt from certain for-profit company compliance requirements, such as the requirement to use the word “Limited” or “Private Limited” in their names.

Tax Exemption/Benefits

Section 8 companies benefit from tax exemptions and benefits, such as tax deductions for donations received and exemption from income tax on excess income applied for charity.

Credibility and Trustworthiness

Section 8 companies have a good reputation among stakeholders and the general public due to their status as a nonprofit organization.

Fundraising Opportunities

As a Section 8 company, they can raise funds through a variety of sources, such as grants, donations, contributions, and foreign funding under the foreign contribution (Finance) Act, 2010.

Comparison chart of different NGO entities

BASIS OF COMPARISON
TRUST
SOCIETY
SECTION 8 COMPANIES
Legal framework
Governed by Trust Act
Governed by Societies Act
Governed by Companies Act
Object
Charitable or religious purposes
Promote arts, culture, sports, education, etc.
Charitable or educational purposes
Minimum Number of Members/Trustees
Minimum of two trustees
Minimum of seven members
Minimum of two shareholders or members
Registration process
Registered with Charity Commissioner or Registrar of Trusts
Registered with Registrar of Societies
Registered with Registrar of Companies
Membership
No membership concept
Members
Shareholders
Name of entity
Ends with "Trust"
Ends with "Society"
Ends with "Foundation," "Association," "Institute," etc.
Tax Benefits
Eligible for tax exemption
Eligible for tax exemption
Eligible for tax exemption
Audit Requirements
Annual audit required
Audit is not mandatory
Annual audit required
Liability
The liability is generally limited
The liability is generally unlimited
The liability is limited
Profit distribution
Not allowed
Not allowed
Not allowed

FAQ's

Unlike other types of companies, Section 8 companies do not have a minimum capital requirement. They can be registered without any minimum capital threshold. The emphasis is on the company’s objectives and social welfare activities rather than the capital investment.
Section 8 companies are primarily formed for promoting charitable or nonprofit objectives. They are not allowed to distribute dividends or profits among their members. Any income generated must be utilized solely for the company’s objectives and should not be used for personal gain.
Yes, Section 8 companies in India can receive foreign contributions subject to the provisions of the Foreign Contribution (Regulation) Act, 2010 (FCRA). They need to obtain prior approval and registration under the FCRA to receive foreign funding.
Yes, a Section 8 company can be converted into another type of company, such as a private limited or public limited company. The conversion process involves obtaining necessary approvals, passing special resolutions, and complying with the applicable regulations and procedures as specified by the Companies Act, 2013.
Yes, a Section 8 company can undertake profit-generating activities through its subsidiaries or separate entities. However, it is important to ensure that the main Section 8 company’s primary objective of promoting charitable or nonprofit activities is not compromised, and the profits generated are utilized for furthering those objectives.
Yes, a Section 8 company must have a minimum of two members or shareholders. However, there is no upper limit on the maximum number of members.
Yes, it is possible to convert a Section 8 company into a for-profit company. However, the conversion process requires the approval of the National Company Law Tribunal (NCLT) and compliance with the relevant provisions of the Companies Act, 2013.
Yes, a Section 8 company can be converted into a Section 8 company registered under a different state or jurisdiction. The conversion process involves complying with the necessary legal procedures, obtaining approvals from the relevant authorities, and adhering to the guidelines specified by the Companies Act, 2013.
No, a Section 8 company is prohibited from providing loans, advances, or financial assistance to its members. The funds of the company should be utilized solely for its charitable objectives and activities.
Yes, a foreign national can be a director in a Section 8 company in India, subject to certain conditions. They need to obtain a Director Identification Number (DIN) and comply with the provisions of the Companies Act, 2013. Additionally, they may have to fulfill specific requirements related to residency and other applicable laws.
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