What is a Section 8 Company?
A Section 8 Company is a not-for-profit organization that is set up with the object of promoting aspects such as charity, education, commerce, art, science, sports, research, social welfare, environment protection, and so on. The profits earned by such companies can be used solely for furthering the goals and objectives of the company and not for distribution as dividends amongst members.
Benefits of Section 8 Company
- No Minimum Paid-Up Share Capital
- Limited Liability
- Credibility
- Separate Legal Entity
- Tax Exemptions
- No Distribution of Profit
- Grants and Funding
Eligibility Criteria for Registration of Section 8 Company in India
- The minimum number of Directors required for a Private Limited is 2, whereas, in the case of a Public Limited, it is 3.
- At least one director has to be an Indian citizen.
- No minimum capital is required, but the company has to raise an adequate amount for its objectives.
- The object of the Company should be based on the promotion of charity, education, research, social welfare, and other such purposes.
Documents Required for Section 8 Company Registration
- For Directors/Shareholders:
- PAN Card (is mandatory for all Indian citizens)
- Passport (is mandatory in case of a foreign national)
- Identity Proof (Aadhar Card, Voter ID, or Passport)
- Address Proof (Bank Statement, Utility Bill, etc.)
- Passport-sized photographs
Requirement for the Company:
- Proposed name of the company
- MOA and AOA of the proposed company in which the objective and rules of the company have to be stated
- Proof of Registered Office Address: Rent Agreement, Electricity Bill, etc
- NOC from the owner of the property
Step-by-Step Process for Section 8 Company Registration in Detail
1. Obtaining DSC
Each director shall obtain a Digital Signature Certificate thereby subsequently signing the online forms.
2. Application for DIN (Director Identification No.)
The Directors of the Company should have a Director Identification Number and thereby filing with the Ministry of Corporate Affairs
3. Name Approval
Decide upon a distinctive name for your Section 8 Company. We shall submit an application for the name approval with the MCA and verify that the same is as per your objectives.
4. Draft MOA and AOA
Draft the Memorandum of Association (MOA) and Articles of Association (AOA) comprising the objects and rules of the company. We shall assist in drafting the above-mentioned legal documents to meet the requirements laid down by MCA.
5. Filing Application with MCA
We shall file the necessary forms of incorporation, MOA, AOA, and all relevant documents with the concerned Registrar of Companies for approval of Incorporation.
6. Incorporation Certificate & License
Once RoC approves your application, MCA issues a Certificate of Incorporation along with a License under Section 8 and officially seals your company as a non-profit organization.
Section 8 Company’s Compliances after Incorporation
- Annual Filing: Annual Returns and Financial Statements shall be filed with the Registrar of Companies.
- Income Tax Filing: Ensure timely filing of the Income Tax Returns and, if eligible, apply for 12A and 80G registrations for tax exemptions.
- Audit: Section 8 Companies have to get their accounts audited every year.
- GST Registration: Section 8 Companies shall, if applicable, get registered under GST and file periodical GST returns.
Why Choose YKG Global for Registration of Section 8 Company?
- Expert Consultation: Our team of experienced professionals offers personalized consultation that guides you properly to make the right decisions for your business.
- Competitive Pricing: We ensure that our pricing is transparent, with no hidden charges, so that you receive true value for money.
- Fast and Smooth Process: Our seamless processes ensure that your Section 8 company gets registered in as little as 10-15 working days.
