Section 8 Company Registration

Why Choose Efiletax for Your Section 8 Company?

  • Hassle-Free Process
  • Full Compliance
  • Tax Exemptions
  • No Minimum Capital Requirement
  • Flexible Naming
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Registration Process

How We Work

01

Choose a Unique Company Name

Conduct a name availability check through the Ministry of Corporate Affairs (MCA) portal to ensure your chosen name is not already in use.

02

Prepare of MoA and AoA

Defines the company's objectives and powers, Sets out the internal governance rules for the company's operation.

03

Incorporation (SPICe+ Form)

Once the Section 8 license is granted, file the SPICe+ form with the ROC. This form incorporates the company and includes: MoA and AoA , Details of directors and subscribers, Company capital structure

04

Certificate of Incorporation

Upon successful registration, the ROC will issue a Certificate of Incorporation, signifying your company's legal existence.

Checklist

Documents Required

Director and Subscriber Documents:
PAN Card
Identity Proof (Passport/Voter ID/Driving License)
Address Proof (Utility Bill/Bank Statement - not older than 2 months)
Passport-sized photographs
Company Documents:
MoA and AoA
Proof of Registered Office Address
Resolution passed by the promoters (if applicable)
Additional Notes:
A minimum of two members (can be individuals or companies) are required for a Section 8 company.
There is no minimum capital requirement for Section 8 companies. Consider seeking professional guidance from a Chartered Accountant or Company Secretary to ensure a smooth registration process.

Understanding Section 8 Companies

Companies Act, 2013 The Companies Act 2013 describes a Section 8 company as one dedicated to the promotion of arts, commerce, science, research, education, sports, charity, social welfare, religion, and environmental conservation. These companies apply their profits towards fulfilling their objectives, excluding shareholder dividends.

The Rationale Behind Registering a Section 8 Company

Registering as a Section 8 Company under the Companies Act 2013 is a declaration of a non-profit intent, focusing on education, social welfare, environmental sustainability, arts, and more. With no minimum paid-up capital requirement and needing just two directors to start, it's designed to encourage charitable endeavors across various fields.

Key Features of Section 8 Companies

Section 8 Companies, acting as NGOs, must adhere to the Companies Act, 2013, fulfilling specific administrative and financial compliances. They cannot allocate profits except for furthering their non-profit objectives. Recognized under the current act, they continue the legacy of the Section 25 Company from the Company Act 1956, upholding stringent compliance requirements for transparency and accountability.

Documentation and Process for Section 8 Company Incorporation

The incorporation process involves obtaining a Digital Signature Certificate (DSC), Director Identification Number (DIN), and adhering to specific filing procedures with the Ministry of Corporate Affairs (MCA). Required documents include the Articles of Association, Memorandum of Association, and various proofs of identity and address for the directors and subscribers.

Fundraising for Section 8 Companies

While direct deposits are not allowed, Section 8 Companies can receive public donations, including foreign contributions with FCRA registration, equity funding, and domestic donations, ensuring a solid financial foundation for their charitable activities.

Why Choose Efiletax for Your Section 8 Company Registration?

Efiletax stands as your trusted ally in the Section 8 company registration process, combining expert guidance with an efficient online platform to streamline your incorporation journey. Our team is dedicated to assisting clients through every step, ensuring legal compliance and a successful launch of your non-profit organization.

FAQ:

A Section 8 Company is a non-profit organization registered under the Companies Act, 2013. It allows social enterprises to operate with limited liability while focusing on promoting social welfare and public good.
Any two or more individuals with a common social cause can register a Section 8 Company. There's no minimum capital requirement, but you'll need to demonstrate a clear purpose and a well-defined plan for achieving your social objectives.
  • Limited Liability: Protects the personal assets of directors and members from company debts.
  • Separate Legal Entity: Grants the organization credibility and facilitates fundraising and partnerships.
  • Tax Exemptions: May qualify for tax benefits on donations and specific income streams.
  • Increased Transparency: Provides a structured framework for managing finances and operations.

What documents are required for registration?

  • MoA (Memorandum of Association): Defines the company's objectives and powers.
  • AoA (Articles of Association): Outlines internal governance rules and regulations.
  • Identity and address proof of directors and members.
  • Declaration of compliance with Section 8 requirements.
  • Estimated annual income and expenditure for the next three years.
  • Obtain Director Identification Number (DIN) and Digital Signature Certificate (DSC).
  • Choose a unique company name and check for availability.
  • Draft the MoA and AoA outlining your social objectives and governance structure.
  • File for registration online with the Ministry of Corporate Affairs (MCA).
  • Pay registration fees and obtain the Certificate of Incorporation.

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