Section 8 Company Registration Online

Section 8 Companies, which can be registered for charitable purposes, share similarities with Trusts and Associations. To register a Section 8 Company, one must be familiar with the necessary documents and the incorporation process. The primary aim of Section 8 Company registration is to promote non-profit objectives. You can easily register your Section 8 Company online with Kanakkupillai without hidden fees.

An NGO can register as a Section 8 Company under the Companies Act 2013, as a trust under the Trust Act 1882 or as a society under the Societies Act 1860. Section 8 Company Registration incorporates an NGO under the Companies Act 2013. A Section 8 Company can promote various non-profit objectives such as education, religion, social welfare, technology, charity, art, social research, commerce, science, sports, and environmental security.

As of August 15, 2019, the MCA has amended the incorporation rules for Section 8 Companies through the sixth Amendment Rules, 2019. This amendment has made the registration process more accessible, as applicants can now apply for registration through a single application form, Form SPICe. The MCA website provides clear instructions to make sure the new rules are clear.

New companies pending Form INC-12 SRNs with particular RoCs will be considered 'Rejected' on August 15, 2019. However, those applicants can file Form SPICe to obtain a License Number and form a Section 8 Company. Shareholders with a permit number waiting to file Form SPICe to incorporate their Section 8 Company should note that the forms will be processed after the stipulated delay time and workflow changes are implemented. 

Shareholders who have already completed filling out Form SPICe but are waiting for CRC may need to wait for the processing of their forms after the workflow changes come into effect.

Just because a company is a non-profit organization doesn't mean it cannot earn profits or commissions. Such organizations may also be eligible for various tax exemptions. Even donors who contribute to a company registered under Section 8 of the Companies Act of 2013 may be able to claim tax exemptions on their contributions. However, it is essential to note that profits cannot be distributed among the shareholders or stakeholders of the company, as it is not allowed under regulations.

• Different legal identities:

Section 8 Company certification introduces a new legal identity with a distinct legitimate character derived from its structure.

• No Minimal Capital:

Unlike other types of companies in India, Section 8 Company Registration does not require any minimum capital.

• No Stamp Duty:

The incorporation of a Section 8 Company in India is exempt from stamp duty due to the exemption provided for the Memorandum of Association (MoA) and Articles of Association (AoA) of private limited companies.

• Credibility:

Section 8 Company license offers more credibility than other charitable organizations.

• Exclusion To The Donators:

Donors can receive exemptions under Section 80G if they contribute to a Section 8 Company registered under this section.

• Tax reductions:

Section 8 Company Registration in India provides various tax benefits to its members.

• Aadhaar Cards of all the Members
• Passport
• Copy of the Rental agreement
• Voter ID
• Most recent Bank Statement of all the Members and the Company
• Passport size photograph of all the members
• Phone Bill/Electricity Bill
• Driving license
• PAN Card of all the Members

• To register a Section-8 company in India, an individual, HUF, or private limited company must fulfill the NGO Section-8 Company registration requirements.
• To register a company, A minimum of two directors is required if the Section 8 company is to be incorporated as a private limited company, and a minimum of three directors in case of incorporation as a public limited company. The maximum number of members is 200 in the case of a private limited company, whereas for a public limited company, there is no such limit.
• No member of the company can receive any form of remuneration.
• The public limited company must have at least one director who is a resident of India.
• The company cannot distribute profits directly or indirectly among its members or directors.
• The company's primary objective should be promoting sports, social welfare, science, art, education, and financial assistance to lower-income communities.
• The company must have a clear vision and plan for the next three years.
• The surplus generated must be used exclusively for the primary purpose of forming the Section 8 company.
• The company must file annual reports, financial statements, and returns with the ROC to comply with regulations.
• The company is responsible for managing its property and must sell it according to the principles mentioned under the Companies Act, with the consent of the Board of Directors.

On June 7, 2019, the Corporations (Incorporation) Sixth Amendment Rules were introduced to streamline the process of incorporating Section 8 companies. These rules require the fulfilment of the prerequisite of filing INC-12.

Name Application/Reservation in the SPICe+ Form:

To register a Section 8 company, applicants must apply for name availability through the SPICe+ portal. The company's name must include Electoral Trust, Federation, Council, Association, Chambers, Foundation, Forum, and Confederation.

Applicants can provide two name options and only one resubmission is allowed.

Preparation of MOA and AOA:

The Memorandum of Association (MOA) and Articles of Association (AOA) are essential documents that establish the rules and objectives of the company. The MOA defines the organization's main purpose and outlines its operations, while the AOA contains the company's internal governance structure.

Applicants can file the MOA using Form INC-13, while there is no prescribed format for the AOA of a Section 8 company.
 

All company members must sign the MOA and AOA in the presence of a witness, who must also sign and provide their details. The document should also briefly describe the total number of board meetings and plenums.

Board Meetings and Plenums:

As per the exemption notice, a Section 8 company must hold at least one meeting within six months of incorporation. The quorum for its board meetings is eight directors or 1/4th of its total strength, whichever is less, consecutively. However, at least two members must attend.
 

Issuance of 80G Certificate:

Non-profit organizations, NGOs, charitable trusts, and Section 8 companies can obtain an 80G certificate from the Income Tax Department. It provides donors with tax exemptions on 50% of their donation amount, encouraging more contributions to such organizations.

Issuance of 12A Registration:

NGOs and other non-profit organizations, including Section 8 companies, can apply for 12A registration to receive an exemption from paying personal income tax. Non-profit organizations, NGOs, charitable trusts, and Section 8 companies are primarily intended for charitable and non-profit activities. They are required to pay taxes at standard rates unless registered under Section 12A of the Income Tax Act.