Section 8 Company
Registration Online in India

A Section 8 company in India is a non-profit organization established to promote arts, commerce, education, charity, or any other useful purpose.

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Four Steps to Get Your Incorporation Certificate

Fill the Form

Provide business details

Add to cart

Pay the required fee online

Submit Documents

Upload required papers

Certificate delivery

Official Document Delivery

Find the best plan for your needs

Basic Plan

19,999
+GST

Standard Plan

23,999
+GST

Basic Plan
+

Premium Plan

49,999
+GST

Standard Plan
+

Note: Government fees for incorporation are additional and vary by state. T&C

Overview of Sec-8 Company

A Section 8 company in India is a non-profit organization formed under the Companies Act, 2013. Its primary objective is to promote arts, science, commerce, research, education, charity, social welfare, religion, environmental protection, or any other similar purpose. These companies are prohibited from distributing profits to their members and must reinvest any earnings back into their activities.

Section 8 companies enjoy certain benefits like tax exemptions and simplified registration processes. However, they must adhere to strict compliance requirements to maintain their non-profit status. These regulations ensure that the companies remain dedicated to their intended purposes and contribute positively to society.

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A Section 8 company in India is a non-profit organization formed under the Companies Act, 2013. Its primary objective is to promote arts, science, commerce, research, education, charity, social welfare, religion, environmental protection, or any other similar purpose. These companies are prohibited from distributing profits to their members and must reinvest any earnings back into their activities.

Section 8 companies enjoy certain benefits like tax exemptions and simplified registration processes. However, they must adhere to strict compliance requirements to maintain their non-profit status. These regulations ensure that the companies remain dedicated to their intended purposes and contribute positively to society.

Types
Features

Types of Various Entites

Helping entrepreneurs and business owners decide the most suitable legal structure for their operations.

non profit oriented entities mobile
Non profit-oriented entities
FeatureSection 8 CompanyCooperative SocietyTrustSociety
Governing ActCompanies Act, 2013Cooperative Societies Act (varies by state)Indian Trusts Act, 1882 (Private), Charitable and Religious Trusts Act, 1920 (Public)Societies Registration Act, 1860
Primary ObjectivePromote charitable objectives such as commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protectionMutual benefit and economic welfare of membersCharitable or religious purposesLiterary, scientific, charitable, and social welfare
Legal StatusSeparate legal entitySeparate legal entityNo separate legal entity; trustee acts on behalfSeparate legal entity
Members/TrusteesMinimum of 2 (Private) or 3 (Public) directorsMinimum of 10 membersMinimum of 2 trusteesMinimum of 7 members
Control and ManagementBoard of DirectorsElected Managing CommitteeBoard of TrusteesGoverning Body or Managing Committee
LiabilityLimited liabilityLimited liabilityTrustees personally liable (unless specified otherwise)Limited liability
Profit DistributionProfits used to promote company’s objectives; no dividendsProfits distributed among membersNo distribution; income used for trust purposesNo distribution; income used for society’s objectives
Compliance RequirementsHigh; annual filings, audit, board meetingsModerate; annual returns, audit (varies by state)Low; minimal annual complianceModerate; annual returns, audit (varies by state)
Tax BenefitsEligible for tax exemptions under Section 12AA and 80GLimited tax benefitsEligible for tax exemptions under Section 12AA and 80GEligible for tax exemptions under Section 12AA and 80G
DissolutionAs per Companies Act, requires approval from NCLTAs per Cooperative Societies ActAs per Trust deed and court ordersAs per Societies Registration Act
Examples of ActivitiesRunning schools, hospitals, environmental projectsProviding credit, housing, consumer goodsManaging charitable activities, religious institutionsRunning educational institutions, cultural programs

Why opt for a Sec-8 Company?

Unlocking Your Business Potential with Private Limited Company Formation

Funding Opportunities

Easier access to grants and donations from government and international bodies.

Tax Benefits

Section-8 companies enjoy various tax exemptions and deductions under the Income Tax Act.

Social Impact

These companies are ideal for promoting social welfare, arts, charity, and education initiatives.

Perpetual Existence

These companies have continuous existence, unaffected by changes in membership.

No Minimum Capital

There is no mandatory minimum capital requirement to start a Section-8 company.

Enhanced Credibility

Registration as a Section-8 company boosts credibility and trust among donors and stakeholders.

Minimum Requirements

As Per Company Act 2013, there are Minimum Requirements That Need to be met For Sec-8 Company Incorporation in India.

Minimum 2 Directores

Unique bussiness Name

At least one director must be a resident of India

Registered office address

Required Documentation for Sec-8 Company Incorporation

To incorporate a Sec-8 Company in India, the following documents are required

Identity & Address of Directors

Registered Premises Documentation

Identity & Address of Directors

Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voters ID

Copy of Recent Utility Bills (Not Older Than Two Months)

Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voters ID

Copy of Recent Utility Bills or Bank Statement (Not Older Than 2 Months)

Digital Passport-Size Photo

Email ID & Phone Number

Copy of Recent Utility Bills or Bank Statement (Not Older Than 2 Months)

Scanned Notarized Rental Agreement (English Version)

Registered Premises Documentation

Copy of Recent Utility Bills (Not Older Than Two Months)

Scanned Notarized Rental Agreement (English Version)

Scanned No-Objection Certificate from Property Owner

Scanned Copy of Sale/Property Deed in English (For Owned Property)

Digital Passport-Size Photo

Scanned No-Objection Certificate from Property Owner

Email ID & Phone Number

Scanned Copy of Sale/Property Deed in English (For Owned Property)

Note: The registered office for your business can be a residential address; it does not need to be a commercial space.

Sec-8 Company Incorporation Procedure

Sec-8 Company Formation Made Easy

Sec-8 Company Incorporation Procedure mobile
Reserving the Company Name is a critical step in the incorporation process

Process:

RUN Service (Reserve Unique Name): File an application in Form SPICe+ Part A for the reservation of the name.

Options: You can propose a maximum of two names at a time.

Guidelines: The name should be unique and not similar to any existing companies or trademarks.

Reservation Validity: The name reserved for the company is valid for a period of 20 days starting from the date it receives approval.

Description: The Second step is to obtain a Digital Signature Certificate (DSC) for the proposed Directors of the company. DSC is necessary for electronically signing the e-forms of company incorporation.

Process: DSC can be obtained from government-recognized certifying agencies. The applicant needs to provide a self-attested copy of their identity and address proof.

Validity: DSCs are typically valid for one to three years and can be renewed.

Following the successful reservation of the company name and acquisition of DSCs, the actual incorporation process begins. This procedure is detailed and requires careful attention to ensure compliance with all regulatory requirements.
Preparation or Drafting of Initial Documents

The foundation of a smooth incorporation process begins with the preparation of crucial documents:

DIR-2 (Consent to Act as Director): A formal declaration by individuals agreeing to serve as directors, outlining their consent and commitment to undertake the roles and responsibilities.

Specimen Signature Card: Used for the Registrar of Companies (RoC) to verify the signatures of the company’s proposed signatories.

Drafting Memorandum of Association (MoA) and Articles of Association (AoA)

The initial documents set the stage for drafting the two most crucial documents for a Section 8 Company:

Memorandum of Association (MoA): Outlines the scope of operations, objectives, and the framework within which the company operates. It specifically includes the nonprofit objectives of the company, aiming to benefit society.

Articles of Association (AoA): Establishes the rules governing the internal management of the company. It details the conduct of its business and the rights and responsibilities of its members, aligned with the nonprofit nature of the organization.

Filling Out SPICe+ Part B

Under the new guidelines, the need to file Form INC-12 for obtaining a license has been eliminated. Instead, the application for a Section 8 Company license is integrated into the SPICe+ form, streamlining the process:

SPICe+ Form: This single, integrated form is used for the reservation of the name, incorporation, DIN application, and other necessary compliance registrations (like PAN, TAN). For a Section 8 Company, this form will also include sections pertaining to the application for a Section 8 License.

 

The form requires detailed information including:

      • Company name
      • Registered office address
      • Capital structure
      • Director and subscriber details

Additionally, for Section 8 Companies, it requires the submission of:

      • A brief about the company’s proposed charitable or not-for-profit objectives
      • Projected income and expenditure for the next three years to demonstrate the non-profit motive and ensure financial viability.

Filling out this form accurately is critical as it establishes the company’s legal identity and ensures compliance with the requirements for nonprofit entities.

Completing AGILE-PRO Form

Parallel to the SPICe+ Part B submission, the incorporation process also involves completing the AGILE-PRO form. This form ensures that the company is registered for:

      • Goods and Services Tax Identification Number (GSTIN)
      • Employees’ State Insurance Corporation (ESIC)
      • Employees’ Provident Fund Organisation (EPFO)
      • Professional Tax (PT)
      • Opening of a bank account

This step ensures that the company complies with various statutory requirements from the outset.

INC-9 Auto-Generation

The final step in the documentation process before submission is:

INC-9: Automatically generated based on the details provided in SPICe+ Part B, this form is a declaration by the subscribers and first directors, confirming their consent and details as submitted in the incorporation application.

Upon the successful submission of the forms and verification by the RoC, the company is issued a Certificate of Incorporation.
Certificate of Incorporation:

This is a crucial document, serving as proof that the company has been legally constituted and includes the Company Identification Number (CIN) along with the PAN and TAN issued to the company.

Incorporation of a Sec-8 company within 7-14 working days.

Incorporation of a private limited company within 7-14 working days.

Documents Received After Company Formation

Incorporation Certificate                                                               
Permanent Account Number (PAN) of the company         
Tax Deduction Account Number (TAN) of the Company 
Articles Of Association (AOA)                                                     
Memorandum Of Association (MOA)                                       
Direction Identification Number (DIN)                                     
Digital Signature Certificate (DSC)                                           
Company Master Data                                                                   

Post Incorporation Compliances

Compliances for a Private Limited Company in India as required by the Ministry of Corporate Affairs (MCA), the Companies Act 2013, and other applicable laws

Darpan, 12AA & 80G Registrations

For Section-8 Companies

1

NGO Darpan Registration

NGO Darpan registration, managed by NITI Aayog, is essential for Section 8 companies to enhance transparency and legitimacy. It facilitates easier access to government grants and schemes, and is often required by banks for opening current accounts.

2

12AA Registration & 80G Registration

Registration under Section 12AA provides tax exemption for non-profits on their surplus income, crucial for operational efficiency. Section 80G enables donors to receive tax deductions on donations, enhancing the attractiveness for potential donors and aiding the organization’s fundraising efforts.

How V Smart Auditor can help ?

Our expert team at V Smart Auditors is committed to making your Sec-8 company incorporation process as seamless as possible. Here’s what you can expect when you choose us as your partner:

  • Initial Consultation and Planning

    We would begin by gathering necessary information about the business, such as the nature of the business, proposed company name, and details of the directors and shareholders. This data collection can be done through an intuitive interface, ensuring all required information is complete and accurate.

  • Name Approval and Legal Documentation

    We assist in checking the availability of the proposed company name and guide the user through the process of obtaining name approval from the relevant authorities. It would also help in preparing and filling out the necessary legal forms, such as the Memorandum of Association and Articles of Association.

  • Digital Signature Certificates

    We would facilitate the acquisition of Digital Signature Certificates (DSC) for the directors of the company. This step is crucial as DSCs are needed for filing company registration forms electronically.

  • Company Registration Filing

    With all the necessary documents and approvals in place, we would assist in electronically filing the company registration forms with the Registrar of Companies (ROC). It would ensure that all forms are filled correctly and submitted with the required attachments.

  • Follow-up and Compliance Check

    After submission, we would monitor the status of the application and keep the user informed about any additional information or documents required by the ROC. This proactive follow-up can help in avoiding any delays in the incorporation process.

  • Final Incorporation and Post-Incorporation Support

    Once the company is officially incorporated, V Smart Auditor would provide the Certificate of Incorporation, PAN, TAN, and other relevant documents. Additionally, it could offer guidance on post-incorporation compliances such as GST registration, opening a company bank account, and other legal formalities.

Frequently Asked Questions

What is a Section 8 Company under the Companies Act, 2013?

A Section 8 Company is a type of nonprofit organization established for promoting charitable or social objectives. It operates under the Companies Act, 2013.

Can a Section 8 Company distribute profits to its members?

No, a Section 8 Company cannot distribute profits or dividends to its members. All income must be used for the company's charitable purposes.

What are the objectives for which a Section 8 Company can be formed?

A Section 8 Company can be formed for the promotion of art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other charitable purpose.

Can a Section 8 Company be converted into a for-profit company later?

No, a Section 8 Company cannot be converted into a for-profit company.

Is there a minimum capital requirement for registering a Section 8 Company?

There is no specific minimum capital requirement for registering a Section 8 Company.

How is the registration process different for a Section 8 Company compared to a regular company?

The registration process for a Section 8 Company is similar to that of a regular company, with additional requirements related to the charitable objects and restrictions on profit distribution.

What is the process for obtaining tax benefits for a Section 8 Company under the Income Tax Act?

To avail tax benefits, a Section 8 Company must apply for tax-exempt status under Section 12A of the Income Tax Act, and donations to the company should be eligible for deductions under Section 80G.

Can a Section 8 Company own property and assets?

Yes, a Section 8 Company can own property and assets in its name, which should be used for achieving its charitable objectives.

Are there any compliance requirements for a Section 8 Company under the Companies Act?

Yes, Section 8 Companies are required to adhere to various compliance and reporting requirements, including annual financial statements and returns as per the Companies Act.

Can foreign contributions be received by a Section 8 Company for charitable purposes?

Yes, a Section 8 Company can receive foreign contributions, but it must obtain prior permission or registration under the Foreign Contribution (Regulation) Act, 2010.

What is the procedure for altering the objectives of a Section 8 Company?

To alter the objectives, a Section 8 Company must seek approval from the Registrar of Companies and follow the prescribed procedures under the Companies Act.

Can a Section 8 Company be dissolved or wound up?

Yes, a Section 8 Company can be dissolved voluntarily by following the provisions specified in the Companies Act, or it can be wound up by the court if it fails to comply with statutory requirements.

How can I become a member of a Section 8 Company?

Membership in a Section 8 Company is typically by invitation, and individuals or organizations interested in the company's objectives can apply for membership following the company's rules and regulations.

Can a Section 8 Company undertake commercial activities to support its charitable objectives?

Yes, a Section 8 Company can engage in commercial activities, but the profits generated must be used exclusively for promoting its charitable purposes.

What are the penalties for non-compliance with the provisions of the Companies Act by a Section 8 Company?

Non-compliance can result in penalties, fines, or even dissolution of the Section 8 Company. It's important to adhere to the legal requirements to maintain the company's status.