Section 8 Company Registration

Section 8 Company Registration establishes a non-profit entity for charitable or social purposes under the 2013 Indian Companies Act.

    About Our Service

    A Section 8 Company, often known as a non-profit organisation, is a company established with the intention of advancing social welfare, charitable causes, or other non-profit objectives such as religion, science, or the arts. The term "Section 8" pertains to the specific segment of the 2013 Indian Companies Act that governs the establishment and functioning of these enterprises within India.

    All revenue generated by Section 8 firms must go towards fulfilling their declared objectives because they are not concerned with turning a profit. Members are not permitted to receive profits or dividends, but they are permitted to solicit grants and public donations.

    Article 8 Companies are free from the minimum paid-up capital requirement and can be registered with very little capital. They can choose to raise funds by charging membership fees, collecting subscription fees, receiving grants, or receiving donations from the general public or other members. All income generated by a Section 8 business must be used to further the business's objectives; the firm is not permitted to pay dividends to its members.

    • Section 8 businesses are comparable to trusts and societies, except they are registered under federal regulations rather than state regulations. Section 8 corporations have a lot of advantages over trusts and societies, including as higher market credibility, stronger legal standing, and more recognition. Section 8 corporations function similarly to limited firms, despite the fact that they cannot include the word "limited" in their name.
    • If a section 8 firm doesn't carry out the tasks that are required of it, the federal government has the authority to order the company's closure.
    • If it is discovered that a section 8 company has deceptive objectives, legal action will be taken against each of the company officers.

    FilingMan is your trusted partner in the seamless registration of Section 8 Companies, also known as non-profit organizations, under the provisions of the 2013 Indian Companies Act. Our specialized team guides you through every step of the registration process, ensuring compliance with the intricate legal framework governing Section 8 entities. We begin by assisting you in obtaining the requisite Director Identification Numbers (DIN) and Digital Signature Certificates (DSC) for the proposed directors, a crucial foundation for initiating the registration journey.

    Principals of a Section 8 Company

    As a society with the Registrar of Societies, or as a non-profit organisation pursuant to Section 8 of the Companies Act, 2013, NGOs may be registered in India.

    The income generated by Section 8 Companies may only be applied to charity endeavours; it may not be distributed to the shareholders.

    As the modern equivalent of the previous Section 25 Companies under the Company Act of 1956, the current Company Act now accepts Section 8 Companies.
    Any amendments to the articles of association (AoA) and memorandum of association (MoA), which serve as the charter documents, must be approved by the government.

    Registration Process

    Step 1: Obtaining DSC and DIN

    The initial and pivotal stage in company formation involves the application for the Director's Identification Number (DIN) and acquisition of the Digital Signature Certificate (DSC) for the directors.

    To submit the company registration documents online to the Ministry of Corporate Affairs, DSC must be obtained from Certifying Agencies. For the duration of their lives, each director is granted a unique number called a DIN, which is required in order to serve as a director for any company. A DSC and DIN can be obtained in about 5-7 days on average.

    Step 2: Check whether the company name is available

    The critical next step is to submit a Form RUN application to seek the company name, where a maximum of two names may be offered. Getting the company name approved is a crucial stage in the registration process.

    Step 3: MOA and AOA draughts

    Following the approval of the company name, the Memorandum of Association (MOA) and Articles of Association (AOA) of the firm are electronically generated using Form INC-13 in line with Ministry of Corporate Affairs (MCA) regulations.

    Step 4: Applying for a Section 8 licence

    To apply for a licence under Section 8 of the Companies Act, a representative of FilingMan Providers will send the Registrar Form INC-12 and the required money. The company can't function without this licence.

    Step 5: Corporate Certificate

    Once the necessary papers and fees for incorporation have been submitted to the Registrar of Companies (ROC), the ROC will issue the Licence (Certificate of Incorporation) as required by Section 8 of the Companies Act. All the benefits and exemptions specified in this document are granted to the company. The Ministry of Corporate Affairs (MCA) approval process typically takes 5-7 days, depending on their processing time.

    Essential Documents

    Members' ID proof

    Address Proof

    Passport-size Photos

    A copy of the rental agreement, if applicable.

    Water/Electricity Bill (Workplace)

    A copy of the property paperwork, if one is an owner

    Landowner No Conflict

    Details of the Director's Directorships (in other Companies/LLPs, if Any)

    Section 8 Company Registration Costs

    Section 8 Company Registration

    ₹ 4,999 / Only

    Plus Government Fees, Stamp Duty Extra.

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      Benefits of Section 8 Company Registration

      There is no required minimum capital

      Since Section 8 Companies in India are not subject to a minimum capital requirement, capital structure modifications may be made as needed to support business expansion. As a result, there is no minimum share capital requirement for the creation of Section 8 Companies.

      Zero Stamp Duty

      Clause 8 The Memorandum of Association (MoA) and Articles of Association (AoA) do not require firms to pay stamp duty, in contrast to other company forms that do when registration.

      Exemptions for Donors

      Contributors to a Section 8 Company are eligible for tax exemptions under Sections 12A and 80G of the Income Tax Act.

      Eligibility for Partnership Firm Membership and Directorship

      It is possible to become an individual member and a director of a registered partnership firm.

      Naming a Partnership Firm

      Section 8: Naming a Partnership Firm It is not needed for "Limited" or "Private Limited" to be a part of a company's legal name. When registering their names, they can select names that contain words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation.

      Donations and Financial Support for Section 8 Companies

      Financial Assistance and Donations to Section 8 Companies Article 8 Although they are permitted to accept public donations, businesses are not permitted to raise capital through deposits. Domestic donations are not subject to any restrictions, but it is essential to establish a robust system to guarantee effective control and prevent cases of money laundering.

      Why Choose FilingMan

      For Section 8 Company Registration?

      With FilingMan's expert guidance, you navigate the complexities of preparing essential documents, including the Memorandum of Association (MOA) and Articles of Association (AOA), meticulously tailored to reflect the non-profit objectives of your organization. Our dedicated professionals liaise with regulatory authorities, handle the documentation process, and streamline the application submission, facilitating a smooth and efficient registration. By choosing FilingMan for your Section 8 Company Registration, you gain a reliable partner committed to realizing your non-profit vision within the legal framework, enabling you to create a positive social impact and contribute to the betterment of society.

      Beyond registration, FilingMan's support extends to post-registration compliance, ensuring ongoing adherence to regulatory requirements. We empower Section 8 Companies to operate effectively by providing insights into operational frameworks, governance structures, and financial practices, helping you focus on your altruistic endeavors while navigating the intricacies of legal and regulatory obligations.

      Section 8 Company Registration FAQ'S

      1. What exactly are Section 8 Companies?
      A Section 8 Company is a non-profit organisation created with the aim of advancing social welfare, charitable giving, religion, art, research, education, or any other beneficial public purpose, as defined by the Companies Act of 2013. It intends to use any profits, if any, only to further its goals rather than paying dividends to its shareholders.
      2. What advantages come with setting up a Section 8 company?
      Tax exemptions, restricted liability, and improved credibility for fundraising from individuals and governmental organisations are just a few benefits of being a Section 8 Company. Additionally, it enables the organisation to engage on charitable projects without thinking about making money.
      3. Can a Section 8 Business Make Money?
      A Section 8 Company may make money from its operations, but the money must only be used to further the company's goals; it cannot pay dividends to its shareholders.
      4. How does the Section 8 Company registration process differ from those of other kinds of companies?
      Additional procedures are required throughout the Section 8 Company registration process to demonstrate the organization's social or charitable goals. It calls for the submission of an Articles of Association and Memorandum of Association that include explicit provisions guaranteeing the use of profits for charitable purposes.
      5. What conditions must be met before a Section 8 company can be registered?
      A Section 8 Company must have a minimum of two directors (three in some states) and two shareholders in order to be registered. The prospective business must also have a distinctive name that complies with the Ministry of Corporate Affairs' naming standards.