Section 8 Company Registration
In 10 days.
From Anywhere.At a Single Click
- DSC & DIN
- Company Name Reservation
- MoA & AoA
- Central Govt. License
- NGO Identification No
- ROC Fees as per NCT of Delhi.
Not all companies have objectives of making profits by carrying out trade and commerce. Many companies primarily have charitable and non-profit objectives. Such entities are referred to as a Section 8 Company because they get recognition under Section 8 of Companies Act, 2013. These companies dedicate all their incomes and profits towards the furtherance of their objectives. A NGO or Non Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object. In India, an NGO can be registered as any of the three structures being Company under Section 8 of the Companies Act, 2013(section 25, companies act 1956), Trust or Society.
Section 8 Company format of a NGO is most popular form of NGO in India. It is easy to register, run or manage a Section 8 Company in comparison of a Trust and a Society.Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Many entrepreneurs, both established names in the industry, as well as those just beginning, have always felt an attraction toward philanthropy
Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes. A Section 8 Company is similar to a Trust or Society; expect, a section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.
- Prepare DSC and file Name Approval
- Apply for Section 8 Company registration license from Regional Director, MCA (INC-12)
- Filing of Section 8 Incorporation Forms on MCA Portal
- MoA and AoA file submission
- PAN, TAN and Bank Account
The very first step for Section 8 company registration is to prepare DSC. Apply for Digital Signature Certificate (DSC) as soon as possible. Section 8 companies should contain words like Foundation, Society, Association, Council, Club, charities, Academy, organisation, Federation, Institute, Chamber of Commerce, Development and many more.
After Name approval, we will apply for Section 8 company registration license from Regional director. The regional director will review the objectives, plans and will grant a permit for Section 8 Company registration. RD usually takes 15 days to issue a license to operate as a section 8 company.
After getting approval from the regional director, we will proceed to file the section 8 company registration application with the requisite documents before ROC. Once all clarifications are provided to ROC, the ROC shall issue a Certificate of Incorporation along with a Company Identification Number (CIN).
Once you get the License, you need to draft the Memorandum of Association (MoA) and Article of Association (AoA) to file section 8 company registration applications. The Object of the company will be detailed in the MoA and the rules, and the by-laws will be mentioned in the AoA.
You must have your PAN, TAN and bank account ready while going for Section- 8 Company registration in India.
- Minimum Requirement:
A Section 8 Company is a company to be incorporated by the Ministry of Corporate Affairs. Minimum two directors and two members are required to incorporate it. No minimum share capital is required for section 8 company registration.
- Charitable object:
Section 8 companies are required to be incorporated with non-profit objectives. Any profit earned through a section 8 company will not be distributed among its members. It will either be reinvested in the business or utilized with an objective of furtherance of its main objects, i.e. charitable purpose.
- Name approval (RUN - Reserve Uniqe Name):
Management Team Unlike other Trusts which are managed by the Trustees as per a Trust Deed, section 8 Companies are governed by the Board of the Director as per the MoA and AoA of the Section 8 Company.
- Regulated Under Companies Act, 2013:
Section 8 company also needs to follow the rules and regulation that are prescribed under the Companies Act, 2013. Maintaining Book of accounts, filing of returns as and when required.
- Income tax:
A company has to follow the provisions of Income Tax Act.
- GST Registration:
Every person or company who is indulged into providing goods and services whose aggregate turnover crosses Rs.40 lakhs in a year requires GST Registration.
No minimum capital:
There is no minimum capital requirement for a Section 8 Company Registration in India.
- Tax Benefits:
There are numerous tax benefits under the Section 8 Company Registration in India.
- No Stamp Duty:
No stamp duty is imposed on the incorporation of Section 8 Company in India as it is against the provision of the payment of stamp duty on the MoA and AoA of the private limited company.
- Separate Legal Identity:
Section 8 Company registration has a separate legal entity. It acquires a distinct legal identity from its members.
Section 8 Company has more credibility than any other form of a charitable organisation. It is under the strict provision of the Companies Act which requires a mandatory audit every year.
- Exemption to the donators:
Under Section 80G, the exemption is granted to the donators if the section 8 company is registered under section 80G.
Section 8 Company is often called as Non- Profit Organization Company. A non-profit organization is often known as NGO. An NGO can register under Trust Act or under Section 8 companies act, 2013 (earlier Section 25 of Companies Act 1956). The NGO registration can be done for promoting art, science, commerce, Technology, sports, education, social research, social welfare, religion, charity and protection of environment etc.
Yes, we have to take the permission or approval for section 8 company registration in India from the central government. CG approval is applied before section 8 company registration.
Yes, section 8 company registration is costly then trust or society registration.
- At least two Board meeting during the year should be conducted.
- Mandatory Audit
- Annual return is to be filed every year with other e- filing forms like MGT 7, AOC 4.
- Income tax return is to be filed every year.
- Additional compliances to fulfill the registration like 12AA, 80G etc.
In Section 8 Company, the auditor is appointed within 3o days of Section 8 company registration by the board of Director and no Central Government approval is required.
- Section 8 company is complex to start as it requires Central Government Approval.
- Section 8 compliance cost is high as compared to any other trust or society
- Penalty provisions are harsh under section 8 company.
- Section 12AA under Income tax act
- Section 80G for Donators of the
- FCRA Registration
The cost of Section 8 Company registration varies from company to company.
No, there is no concept of the minimum number of member requirement for section 8 company registration.