Section 8 company registration
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Section 8 Company Registration – An Overview
Section 8 Company Registration is essential for promoting non-profit objectives. Contributions made to Section 8 Companies qualify for deductions under the Income Tax Act, and these entities enjoy various tax exemptions. Their primary purpose is to foster social entrepreneurship and charitable initiatives in India to aid those in need.
Before applying for incorporation with the Registrar of Companies (ROC), an applicant must obtain a license from the Central Government. Adhering strictly to the specified objectives is crucial for compliance during the Section 8 NGO registration process.
Facing challenges in registering a Section 8 Company? Our experts at Fastzeal streamline the process for a hassle-free experience.
What is a Section 8 Company?
A Section 8 Company, as defined under the Companies Act of 2013, is a non-profit entity formed to promote activities such as business, arts, science, sports, education, research, social welfare, religion, charity, and environmental initiatives. Unlike other business structures, it reinvests its earnings into fulfilling its declared objectives instead of distributing them among its members.
Eligibility Criteria for Section 8 Company Registration
To register a Section 8 Company under the Companies Act, 2013, the following conditions must be met:
The company must have at least two directors or shareholders.
The applicant can be an individual, a company, or a Hindu Undivided Family (HUF).
At least one director must be an Indian resident.
The entity must operate for objectives such as promoting business, arts, science, sports, education, research, social welfare, religion, charity, or environmental causes.
Profits, dividends, or donations must solely support the organization’s objectives and cannot be distributed among members.
A detailed operational plan for the next three years must be prepared.
Documents Required for Section 8 Company Registration
The following documents are necessary for initiating the registration process:
PAN Card of directors and shareholders
Aadhaar Card
Bank Statement
Utility Bills
Driving License/ Passport/ Voter ID
Passport-size photographs of directors and shareholders
Rent Agreement of the registered entity
Digital Signature Certificate (DSC) & Director Identification Number (DIN)
Memorandum of Association (MoA) & Articles of Association (AoA)
Procedure for Section 8 Company Registration
The process for registering a Section 8 Company includes the following steps:
Name Approval:
The applicant must secure name approval from the Ministry of Corporate Affairs (MCA). The name should include terms like association, foundation, federation, forum, or council.
Obtaining DSC & DIN:
Directors must acquire a Digital Signature Certificate (DSC) and Director Identification Number (DIN) to manage the organization.
Drafting MoA and AoA:
The Memorandum of Association (MoA) and Articles of Association (AoA) must be prepared, outlining the company’s objectives, rules, and regulations.
Application for Section 8 Company License:
The applicant must submit Form INC-12 online to the regional director, detailing the organization’s objectives to obtain a Section 8 company license.
Filing the Application Form:
Upon approval via Form INC-16, the applicant must complete the SPICe+ Form INC-32 on the MCA website.
Issuance of Incorporation Certificate:
The ROC verifies the submitted documents and, upon approval, issues the Certificate of Incorporation along with the Corporate Identity Number (CIN).
List of Forms Required for Section 8 Company Registration
Form INC-11: Application for incorporation
Form INC-12: Details of the company’s directors
Form INC-13: Memorandum of Association subscriber details
Form INC-14: Registered office details
Form INC-15: Submission of MoA and AoA
Registration Fees for Section 8 Company
The cost of registration depends on various factors, including DSC, DIN, Income Tax registrations, and name approval. The estimated costs are:
DSC and DIN: Rs 3,000
Name Approval: Rs 1,000
Government and Incorporation Fees: Rs 6,000 – 8,000
Stamp Duty and Notary Charges: Rs 2,000
Professional Fees: Rs 8,000 – 10,000
Timeline for Section 8 Company Registration
The registration process typically takes 15-20 days, depending on the accuracy and prompt submission of documents. If all documentation is correctly filed without objections, the incorporation certificate is issued without delays.
Why Choose Fastzeal for Section 8 Company Registration?
Fastzeal is a leading name in business consulting and compliance services. Here’s why we are your ideal partner for Section 8 Company incorporation:
Assisted in 150+ successful Section 8 Company registrations
Saved 1,00,000+ hours for social entrepreneurs
Holding a 75% market share in compliance consulting
Over a decade of expertise in Section 8 Company incorporation
Comprehensive documentation support
99% success rate in company incorporation
Post-registration compliance guidance
24/7 expert assistance for a smooth registration process
Frequently Asked Questions:
Section 8 Company under the Companies Act of 2013 is a non-profit organization created to advance business, the arts, science, sports, education, research, social welfare, religion, charity, the environment, or any other comparable goal.
Section 8 Company Registration is required to form a non-profit organization that promotes philanthropic or charitable activities. It is the easiest way to start an NGO and serve the society.
To start the Section 8 Company Registration procedure, the applicant needs to obtain a name approval for the entity from the Ministry of Corporate Affairs. It must be taken into notice that the company name must end with certain words like association, foundation, federation, forum, council, etc.
A Form INC-12 must be filled out to the regional director stating the objectives of the organization to be incorporated, to get the section 8 company license.
Section 8 company is incorporated for purposes like advancing business, arts, science, sports, education, research, social welfare, religion, charity, the environment, or any other similar goals.
According to the old Companies Act of 1956, a Section 25 company was the same as a Section 8 company under the new Companies Act of 2013. The organizations, which were formerly known as Section 25 companies, were some of the most well-liked non-profit organizations in India. These non-profit corporations' categorization was changed from Section 25 to Section 8 with the passage of the revised Companies Act in 2013.
No, Section 8 Companies do not have to pay income tax as long as their profits and income are invested to serve the purpose of their objectives stated in the MoA. Section 12AA of the Income Tax Act, of 1961 grants this exemption. However, if the income is used for activities other than those mentioned in the objectives or income comes from any commercial activities then the tax has to be paid.
There must be a minimum of 2 members in a Section 8 company, however, there is no maximum limit on the number of members. The company can have as many members as are required to meet the objectives of the organization.
Yes, it is mandatory to have a registered office to proceed with the Section 8 NGO Registration in India.
Yes, a foreign national as well as an NRI can be a director of a Section 8 company in India as long as he/she is following the regulations established to be a director of the company. However, there must be one director of Indian nationality in the organization.
The compliances of Section 8 Company as per the Companies Act are annual returns fillings, maintaining the books of accounts, holding meetings of the board of directors at regular intervals, financial statements filing in Form AOC 4, audit reports, etc.
Yes, a Section 8 Company can receive funding from a foreign source as long as they comply with the Foreign Contribution (Regulation) Act of 2010.
Given below are the steps that you can follow in order to check whether your section 8 company is registered or not-
- Visit the section of MCA services.
- Look at the available options and choose ‘View Company Master Data.’
- Enter the Corporate Identification Number.
- After that, you have to hit the submit button.
- You will come across the current status of your company.
