Section 8 Company Registration Online

Section 8 Company registration is a significant step for those looking to start a non-profit organization in India. Governed by the Companies Act 2013, a Section 8 Company operates with the primary objective of promoting charitable, social, educational, or other non-profit activities. This blog explores the benefits, requirements, and process of registering a Section 8 Company in India, along with its compliance essentials.

A Section 8 Company is a legal entity formed under Section 8 of the Companies Act 2013 for promoting objectives such as social welfare, education, and environmental sustainability. Unlike other company structures, Section 8 companies do not distribute profits to their members but reinvest them to further their goals.

Section 8 Company means an organization formed solely for charitable purposes.

It is one of the most credible forms of NGO registration in India.

Registering as a Section 8 Company offers several advantages:

• Tax Exemptions: Companies registered under this section are eligible for benefits like 80G and 12A certificates, providing tax exemptions to the organization and its donors.
• Credibility: Section 8 Company registration enhances the organization's trustworthiness among donors and stakeholders.
• Separate Legal Entity: The company has its independent legal identity, protecting its members from personal liabilities.
• No Minimum Capital: Unlike other company structures, there’s no requirement for minimum capital for a Section 8 Company.
• Stamp Duty Exemption: Incorporation of Section 8 companies is exempt from stamp duty.

To register a Section 8 Company in India, applicants must meet the following criteria:

• Promoters: Individuals, HUFs, or entities can act as promoters.
• Directors: At least two directors are required for a private limited company and three for a public limited company.
• Profit Distribution: Members or directors cannot receive profits from the company.
• Purpose: The primary objective must align with the promotion of non-profit causes such as education, art, or social welfare.

1. Name Reservation
Applicants must propose a unique name for the company using the SPICe+ Form. The name should align with the objectives of the company and include terms like 'Foundation,' 'Association,' or 'Federation.'

2. Drafting MOA and AOA
The Memorandum of Association (MOA) and Articles of Association (AOA) define the rules and objectives of the company. These documents must be signed in the presence of witnesses.

3. Filing the SPICe+ Form
The SPICe+ form simplifies the section 8 company registration online process, allowing applicants to apply for incorporation, PAN, TAN, and GST simultaneously.

4. Obtaining a License
After the SPICe+ form is approved, the applicant receives a license to operate under Section 8 of the Companies Act 2013.

5. Post-Incorporation Compliance
Compliance is an essential part of operating a Section 8 Company, ensuring adherence to statutory requirements.

• Annual Filings:- A Section 8 Company must file its annual returns and financial statements with the Registrar of Companies (RoC).
• Audit:- Financial records must be audited annually by a certified auditor.
• Board Meetings:- Regular board meetings are mandatory, with at least one meeting every six months.
• Tax Filings:- Timely filing of income tax returns is critical to retain tax exemption benefits.

Section 8 Company compliance is crucial for maintaining the organization’s credibility and eligibility for government schemes and grants.

With advancements in technology, Section 8 Company registration online has become straightforward and efficient. The online process offers:

• Simplified submission of documents.
• Transparency in application tracking.
• Cost-effectiveness and time-saving features.

While Section 8 Companies, trusts, and societies share a common goal of serving non-profit objectives, they differ in their structure and governance:

The introduction of Section 8 of Companies Act 2013 has streamlined the incorporation process and enhanced the credibility of non-profit organizations. The amendment rules in 2019 further simplified the registration process, allowing applicants to register through a single SPICe+ form.

Some notable organizations registered as Section 8 Companies include:

• Teach for India
• Akshaya Patra Foundation
• HelpAge India

These organizations demonstrate the diverse objectives that can be achieved under the framework of a Section 8 Company.

Registering a Section 8 Company is an excellent way to contribute to society while enjoying various benefits, including tax exemptions and enhanced credibility. By adhering to the compliance requirements and leveraging the provisions of Section 8 of Companies Act 2013, organizations can effectively achieve their non-profit objectives.

If you're ready to register your Section 8 Company, take the first step today. With the streamlined Section 8 Company registration online process, starting a non-profit organization in India has never been easier.

1. What is a Section 8 Company?

A Section 8 Company is a type of non-profit organization registered under Section 8 of the Companies Act 2013. It is primarily established for promoting charitable objectives such as education, social welfare, and environmental sustainability.

2. What does Section 8 Company mean?

A Section 8 Company means a company that works for non-profit purposes, using its income to promote charitable objectives rather than distributing it among its members.

3. How can I complete Section 8 Company registration?

The Section 8 Company registration process involves applying through the SPICe+ portal, preparing MOA and AOA, and obtaining a license under Section 8 of Companies Act 2013.

4. Is Section 8 Company registration online possible?

Yes, Section 8 Company registration online is possible through the Ministry of Corporate Affairs (MCA) portal. The SPICe+ form simplifies the process of incorporation.

5. What are the benefits of Section 8 Company registration?

The benefits of Section 8 Company registration include tax exemptions, enhanced credibility, no minimum capital requirement, and stamp duty exemptions.

6. What is the role of Section 8 of Companies Act 2013 in registration?

Section 8 of Companies Act 2013 provides the legal framework for establishing non-profit companies in India, outlining their objectives and compliance requirements.

7. Who can apply for Section 8 Company registration in India?

Individuals, HUFs, or entities aiming to promote charitable causes can apply for Section 8 Company registration in India, provided they meet the eligibility criteria.

8. What documents are required for Section 8 Company registration?

Documents required for Section 8 Company registration online include the MOA, AOA, identity proofs, address proofs, and photographs of all members and directors.

9. How is a Section 8 Company governed?

A Section 8 Company is governed by the Companies Act 2013. It must adhere to strict compliance requirements, including annual filings and audits.

10. What are the compliance requirements for a Section 8 Company?

Section 8 Company compliance includes holding board meetings, filing annual returns, maintaining audited financial statements, and complying with tax regulations.

11. Can a Section 8 Company earn profits?

While a Section 8 Company can generate income, the profits must be used to achieve its objectives and cannot be distributed among its members or directors.

12. What is the difference between a Section 8 Company and a trust?

A Section 8 Company has a separate legal identity and offers more credibility compared to a trust. It is governed by Section 8 of Companies Act 2013, while trusts are governed by the Trust Act.

13. What are the tax benefits of registering a Section 8 Company?

One of the key benefits of Section 8 Company registration is eligibility for tax exemptions under 80G and 12A, which also encourage donations by offering tax benefits to donors.

14. How many directors are required for a Section 8 Company?

A minimum of two directors is required for a private limited Section 8 Company, while three directors are needed for a public limited company.

15. Can a Section 8 Company operate in multiple states?

Yes, a Section 8 Company in India can operate across multiple states, provided it complies with all local regulations and maintains its primary objectives.