Section 8 Company Registration in India
Section 8 Company Registration in India refers to the process of registering a non-profit organization or a company under Section 8 of the Companies Act, 2013. Section 8 Companies are registered as non-profit organizations and are exempted from paying income tax on the surplus generated from their activities. However, the surplus must be utilized for the promotion of the company’s objectives and cannot be distributed as dividends to the members.
To register a Section 8 Company, the entity must obtain a license from the Registrar of Companies (ROC) by submitting the necessary documents and fulfilling the eligibility criteria. The company must have at least two directors and two shareholders, and it must also have a registered office address.
Some of the advantages of registering a Section 8 Company in India include limited liability, tax exemptions, separate legal entity status, credibility and trustworthiness, access to grants and funding, and perpetual succession.
Types of Section 8 Companies Based on Operations and Scope:
Charitable Company: A nonprofit organization that is established for charitable purposes such as the promotion of religion, education, art, culture, or social welfare. All profits must be used for charitable purposes.
Nonprofit Company: A Section 8 company founded with the intention of advancing business, science, the arts, education, research, or similar goals.
Both types are non-profit organizations and must use any surplus solely to promote their objectives.
Checklist for Section 8 Company Registration Online:
To be eligible, the following conditions must be met:
- Objectives: Must aim to promote commerce, science, arts, education, social welfare, religion, charity, etc.
- Non-Distribution of Profits: Profits must be reinvested in the company’s objectives and not distributed to members.
- Minimum Number of Directors and Shareholders: At least two directors and two shareholders are required.
- Registered Office: Must have a registered address in India (owned or rented).
- License from ROC: A license must be obtained from the ROC with the necessary documents and fees.
- MOA and AOA: Must clearly state the company’s objectives and activities.
Documents Required for Section 8 Company Registration
For Directors/Shareholders:
- Self-attested PAN card
- Self-attested Voter ID, Driving License, or Passport
- Self-attested Bank statement or utility bill
- Recent passport-size photo
For Registered Office Address:
If rented/leased:
- Owner’s electricity bill
- Rent or lease agreement
- NOC from the owner
If owned:
- Owner’s electricity bill
- NOC from the owner
Section 8 Company Registration Process
- Name Reservation
- Procurement of Digital Signatures
- Preparation of Incorporation Documents
- Drafting of MOA & AOA
- Filing of Incorporation Documents with MCA
- Filing of Registered Office Address
- Commencement of Business Filing
- Issuance of Share Certificates
- Filing of Initial LLP Deed
What Will You Get from Us?
After successful online Section 8 Company registration, we will provide:
- 2 Class 3 Digital Signatures
- 2 Director Identification Numbers (DINs)
- Company Name Approval
- MOA & AOA
- Certificate of Incorporation
- License to Operate
- Company PAN & TAN
- PF/ESI Registration
- Shop & Establishment Registration
- Incorporation Kit
- Hard-copy Share Certificates
- Commencement of Business Certificate
- Bank Account Opening Documents
- Standard Document Formats
- First Auditor Appointment
- Additional Benefits:
- Bank Account Opening Support
- Free Domain
- Free 5-Page Website
- Listing on Social Media
- Google My Business Listing
- Payment Gateway Setup (Razorpay/PayU)
Top 10 Benefits of Section 8 Company Registration in India
- Tax Exemptions: Eligible for various exemptions like income tax and dividend distribution tax.
- Limited Liability: Members' liability is limited to their capital contribution.
- Credibility: Registered with MCA, increasing trust and market reputation.
- Lifelong Succession: The company exists even if members change.
- No Minimum Capital Requirement: Easy to start without huge funds.
- Easy Ownership Transfer: Shares can be transferred to new members or investors.
- Access to Grants & Donations: Easier to receive government and foreign funding.
- Corporate Social Responsibility (CSR): Helps contribute positively to society.
- Separate Legal Entity: Can sue or be sued in its own name.
- Flexible Management: Professionals can manage operations without ownership.