Register Your Section 8 Company in India
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- Society under Societies Registration Act, 1860
- Trust under Indian Trusts Act, 1882
- Section 8 of Companies Act, 2013
Profit for a Purpose: Benefits of Registering a Section 8 Company in India
A Section 8 Company, also known as a not-for-profit organization, is governed by the Companies Act, 2013 (or its predecessor, the Companies Act, 1956 in India). It is formed to promote charitable objectives like education, science, art, religion, social welfare, etc.
Section 8 Companies operate with a charitable mission at their core. Unlike conventional businesses, they prioritize social impact over profits. Any funds they generate are reinvested into furthering their philanthropic goals.
Setting up a Section 8 Company doesn't require a large initial investment. Unlike other business structures, there's no mandate for a minimum amount of capital.
Section 8 Companies enjoy tax exemptions under the Income Tax Act, 1961, subject to approval by the Income Tax Department. These exemptions can provide significant savings towards charitable activities.
Section 8 Companies operate under the regulatory purview of the Ministry of Corporate Affairs (MCA) and other relevant government bodies.
Any surplus funds generated by a Section 8 Company must be reinvested solely towards advancing its charitable objectives. This ensures that resources are maximized for social impact rather than being diverted for personal gain.
In the unfortunate event of dissolution, a Section 8 Company must ensure that its remaining assets are transferred to another organization with similar charitable objectives or to the government.
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Eligibility Criteria for Incorporation of a Section 8 Company in India
The company must aim to promote activities related to art, science, commerce, education, social welfare, or similar objectives for the benefit of the public.
Profits or income generated by the company must be solely applied towards promoting its objectives, with no distribution of dividends to members.
Prior approval from the Central Government is required for incorporation, with the submission of necessary documents and a detailed memorandum and articles of association.
The company must comply with the Companies Act, 2013, and other relevant laws, including statutory requirements for governance, financial reporting, and annual compliance filings.
A minimum of two members (individuals or corporate entities) and two directors (individuals) are required, with no minimum capital requirement.
Stamp duty does not apply to the memorandum and articles of association of a Section 8 company.
Your Step-by-Step Guide to Section 8 Company Registration
We specialize in guiding organizations through the intricate process of Section 8 company registration online. Below, we outline a concise step-by-step guide to streamline your registration journey.
Step 1:
Secure a Digital Signature Certificate (DSC) for the prospective Directors of the Section 8 Company. Upon receiving the DSC, submit Form DIR-3 to the Registrar of Companies (ROC) to obtain a Director Identification Number (DIN). Ensure that proof of identity and address is provided for DSC issuance.
Step 3:
Lodge Form INC-12 with the ROC to request a license for the Section 8 company, including the necessary documents as specified earlier.
Step 5:
Upon receiving the license, file the SPICe+ Form with the ROC for incorporation, along with the required attachments mentioned previously.
Step 2:
Following approval of Form DIR-3, the ROC will assign a DIN to the proposed directors.
Step 4:
Upon approval of the form, a license under section 8 will be issued in Form INC-16.
Upon satisfactory review of the submitted forms, the ROC will issue a Certificate of Incorporation along with a unique Company Identification Number (CIN).
Documents Required for Section 8 Company Incorporation
Here are the essential documents required for the incorporation of a Section 8 company in India:
- Memorandum of Association (MoA)
- Articles of Association (AoA)
- Declaration by Promoters
- Affidavit from Directors and Shareholders
- Address Proof
- Identity Proof and Address Proof of Directors and Shareholders
- Director Identification Number (DIN) and Digital Signature Certificate (DSC) of Directors
- Board Resolution
- Power of Attorney (if applicable)
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