Section 8 Company

Section 8 Company Registration

A Section 8 Company is a legal entity registered under Section 8 of the Companies Act, 2013 in India, primarily formed for charitable or non-profit purposes. The objectives of a Section 8 Company include the promotion of commerce, arts, science, education, research, social welfare, religion, charity, environmental protection, and other similar objectives. Unlike other companies, Section 8 Companies do not aim to make profits, and any surplus generated is reinvested in furthering the company’s objectives.

Documents Required

Recent Utility Bill

Business Place

Aadhaar Card

Aadhaar is mandatory for Indian Directors.

Name Significance Letter

Specimen

Our Services

All Inclusive Service-Inclusive of Government Fees

^₹ 6999

PAN Registration
TAN Registration
Includes ESI & PF Registration
Inclusive of GST Registration
Free 6 month of TDS Return Filing
Also includes Share Certificate
Free Consultancy from Chartered Accountatnt for 6 months

Active Plan

Benefits of Registering a Section 8 Company

Tax Exemptions:
Section 8 Companies are eligible for tax benefits under Section 12A and Section 80G of the Income Tax Act, which provides tax relief for donations received and income generated for charitable purposes.
Credibility and Trust:
Section 8 Companies are trusted more than NGOs or Trusts as they are governed by the strict regulations of the Companies Act, making them more credible in the eyes of donors and stakeholders.
Separate Legal Entity:
The company has its own legal identity, separate from its members, allowing it to enter into contracts, own property, and sue or be sued in its own name.
No Minimum Capital Requirement:
Unlike other companies, a Section 8 Company does not have a minimum capital requirement, making it easier to establish.

Benefits of Opening a Section 8 Company in India

Incorporating a Section 8 company in India offers numerous advantages, some highlighted below.

Tax Exemption

Tax Exemption allows individuals and organizations to reduce their taxable income or avoid certain taxes altogether. Charitable institutions, like Section 8 Companies, are eligible for exemptions under provisions like Section 12A and Section 80G of the Income Tax Act.

Separate Legal Entity

A Section 8 Company enjoys the status of a separate legal entity, meaning it can own property, enter into contracts, and sue or be sued independently of its members. This provides greater legal protection and continuity for the company.

No Minimum Capital Requirement

Increased Credibility

Because Section 8 corporations must adhere to stringent legal compliance standards, their legal standing is perceived as more credible. Section 8 entities are more trustworthy because, in contrast to NGOs and trusts, they adhere to strict compliance requirements after registration.

Eligibility Criteria for Incorporation of a Section 8 Company:–

Charitable Objective:

The company must be formed for promoting charitable purposes such as social welfare, education, arts, science, sports, environment, or any other not-for-profit objective.

Minimum Directors and Members:

Private Section 8 Company: Minimum 2 directors and 2 members.
Public Section 8 Company: Minimum 3 directors and 7 members.

No Profit Distribution:The profits or income generated by the company must be used solely to promote its objectives and cannot be distributed among the members or directors.

Compliance with the Companies Act:The company must comply with the regulations under Section 8 of the Companies Act, 2013, and the Ministry of Corporate Affairs (MCA) requirements.

Indian Residency

At least one director must be an Indian resident.

Section 8 Company Incorporation Process

Obtain Digital Signature Certificate (DSC)

All proposed directors must acquire a Digital Signature Certificate (DSC) to sign electronic documents.

Name Approval (SPICe+ Form)

Submit the SPICe+ Form (Part A) to the Ministry of Corporate Affairs (MCA) to reserve the company’s name. Ensure it aligns with the charitable objectives and includes “Foundation,” “Association,” or similar suffixes.

Apply for Section 8 License (Form INC-12)

Submit Form INC-12 along with the draft MOA, AOA, and necessary documents to the Registrar of Companies (ROC) to obtain a Section 8 license.

Apply for Director Identification Number

Obtain the Director Identification Number (DIN) for all directors by filing Form DIR-3 if not already acquired.

Drafting MOA & AOA:

Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), clearly stating the company’s objectives and governance structure. The MOA must focus on non-profit goals.

File Incorporation Forms

After receiving the Section 8 license, file the incorporation forms SPICe+ (Part B), AGILE Pro, and INC-9 for company registration with ROC.

Needs Professional Tax Service? Contact Us

Navigating the complexities of tax laws and regulations can be overwhelming for businesses and individuals alike. Whether you’re looking to optimize your tax planning, ensure compliance, or resolve tax-related issues, our expert team at ACCOTALE ADVISORY PRIVATE LIMITED is here to help.

Testimonials

What Our Clients Says

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