Section 8 Company Registration

Overview

Section 8 Company, also known as a Not-for-Profit Company, is a type of company incorporated under Section 8 of the Companies Act, 2013 in India. It is formed for the purpose of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other such useful object.
Section 8 companies can operate like any other limited company, but their primary objective is to promote charitable causes and not for profit.

Minimum Requirement

01

New & Unique Name

In view of name guidelines under the Companies Act, 2013, you must have a new and unique name. The name of a Section 8 Company should end with the words “Foundation,” “Association,” “Society,” “Council,” “Club,” “Charity,” “Institute,” “Organization,” “Federation,” “Chamber of Commerce,” or “Trust.”

02

Minimum Two Person

At least 2 person required to act as the initial shareholder & director.
Atleast one of the director must be an Indian Resident.

03

Registered Address

Company Premises can either be owned or rented.

04

Capital Requirement

Sec.8 company must not have any share capital, and any surplus or profits must be utilized for promoting the objectives of the company.

Documents Requirements

Required in Soft Copy Only

Documents of Directors

PAN & AadharCard
Other ID Proof Driving license, Voter Id or Passport
Address Proof Bank Statement or Utility Bills - E.g.- Electricity Bill / Water Bill / Property Tax
Colour Photo
Email id and Mobile Number

Required in Soft Copy Only

Business Address Proof

Address Proof (owned) Sale Deed ( Ownership Documents), Electricity Bill / Propert Tax
Address Proof (Rented) Rent Agreement , Electricity bill, NOC from Owner of the premises

Advantages

Separate Legal Entity

A Section 8 Company is a separate legal entity from its members, which means it can enter into contracts and own assets in its own name.

Perpetual Succession

It has a perpetual succession, meaning it continues to exist regardless of changes in members or directors.

Professional Management

A Section 8 Company has a formal management structure with directors, shareholders, and auditors. This ensures professional management and accountability.

Charitable and Social causes

A Section 8 Company is primarily formed for promoting charitable or social causes, and it can be a platform for carrying out activities related to education, health, environment, and other social causes.

Limited liability of Members

The liability of the members of a Section 8 Company is limited to the extent of their contribution to the company.

Fund Raising

A Section 8 Company can raise funds from its members, the general public, or any other sources for its activities.

Tax Benefits

A Section 8 Company is eligible for tax exemptions under Section 12AA and Section 80G of the Income Tax Act, 1961.

Recognition and Credibility

A Section 8 Company is registered under the Companies Act, which provides it with recognition and credibility in the eyes of the government, donors, and other stakeholders.

Steps

Step 1

Verification of Documents provided for incorporation by you. And application for DSC.

Step 2

Application for Name approval

Step 3

Drafting of MOA and AOA

Step 4

Filing of SPICE + Form

Step 5

Once SPICE + form got approved , ROC issue Certificate of Incorporation.

Your Takeouts

DIN for 2 Directors

DSC for 2 Directors

Certificate of Incorporation (CIN)

Memorandum of Association and Article of Association

E- PAN of Company

E- TAN of Company

Professional Tax Registration
( In Maharasthra )

GST Registration ( If required seperately chargeble )

Shop and Establishment
Registration

Compliances

To promote transparency, sound governance, and safeguard the interests of all stakeholders, certain compliance requirements and related filings must be fulfilled within established timelines.

Our company assists in fulfilling these obligations with ease and efficiency. Compliance requirements can be broadly categorized into four types

For further details and expert guidance, kindly seek the consultation of our seasoned startup consultants.

One Time Compliances

One Time after incorporation like appointment of Auditor, Declaration for Commencement of business, Issuance of share certificate etc

Event Based Compliances

Change of Directors, Change of regd. Address,Allotment of shares etc.

Regular Compliance

Accounting , Tax Filing , Maintenance of records and registers etc

Annual Compliance

ROC Annual filing, Audit of financial statement, ITR filing etc

Frequently Asked Question

Private limited company

Public limited company

Limited liability Partnership

One person company

Nidhi Company

Producer Company

Section-8 Company

A Director Identification Number (DIN) is a unique identification number assigned to an individual who has been appointed or proposed to be appointed as a director of a company in India. This number is assigned by the Ministry of Corporate Affairs (MCA) and is used to track and maintain records of all directors of companies registered in India.The process of obtaining a DIN involves submitting an application to the MCA along with the required documents and paying the relevant fee. The DIN once obtained is valid for the lifetime of an individual, and it is not required to renew it.

A Digital Signature Certificate (DSC) is an electronic document that is used to verify the identity of an individual. It is issued by a Certifying Authority (CA) and contains the user's name, a serial number, expiration dates, a copy of the user's public key, and the digital signature of the issuing CA. DSCs are used to digitally sign electronic documents and transactions, such as e-filing of income tax returns, e-tendering, and e-procurement. It is similar to a physical signature but is used in the digital world.

A Corporate Identification Number (CIN) is a unique 21-digit alpha-numeric code assigned by the Registrar of Companies (ROC) to a company at the time of its incorporation. It is used to identify a company and its various records with the Ministry of Corporate Affairs (MCA) in India, who is responsible for the administration of the Companies Act.

The CIN is made up of three parts:
1. The first two characters represent the 'industry classification code' which identifies the type of industry the company belongs to.
2. The next five characters represent the 'location code' which identifies the state and the ROC where the company is registered.
3. The last 14 characters represent the 'incorporation number' which is unique to each company.

CIN is a permanent number for a company and it does not change even if the company changes its name or location. It can be used to track the company's registration, compliance, and financial status on the MCA's website. It is also used in various other government and non-government transactions.

The Memorandum of Association (MOA) is a legal document that sets out the constitution of a company. It serves as the company's charter and outlines the company's objectives, the capital it intends to raise, and the nature of its business. The MOA is one of the primary documents required to be filed with the Registrar of Companies at the time of incorporation of a company.

The MOA includes details such as the company's name, registered office address, the main objects of the company, the authorized share capital, and the names and addresses of the subscribers (i.e. the individuals who have agreed to take shares in the company). It also includes any objects which are ancillary or incidental to the attainment of the main objects, and any other powers that the company may have.

It is important to note that MOA is a public document and can be inspected by anyone on payment of prescribed fees. It is also important to review and update the MOA if there are any changes in the company's objectives or capital structure.

The Articles of Association (AOA) is a legal document that sets out the internal regulations governing the management and operation of a company. It is one of the two key documents required for the incorporation of a company, along with the Memorandum of Association.
The AOA typically includes provisions regarding the company's objectives, the powers and duties of the directors, the rights and duties of the shareholders, the authorized share capital and the procedures for issuing and transferring shares. It also includes provisions on how the company will be run, including the procedures for holding meetings, appointing directors, and making decisions.
It is important for companies to draft their AOA carefully, as it can have significant implications for the company's operations and management. Our Expert Team at SureTax Fincare will provide you legal advice when drafting or amending their AOA to ensure compliance with applicable laws and regulations.

Authorized share capital, also known as authorized capital or registered capital, refers to the maximum amount of common stock that a company is legally authorized to issue and it is usually mentioned in the Memorandum of Association (MOA) and the Article of Association (AOA) of the company.

Paid-up capital, also known as subscribed capital, is the amount of money that shareholders have actually paid to the company in exchange for the shares they own.It is the total amount of money that shareholders have invested in the company by purchasing shares at the time of incorporation or later.
Paid-up capital is an important measure of a company's financial strength, as it represents the amount of equity that shareholders have invested in the company.
The company can only issue shares up to the authorized capital limit, in this case, the paid-up capital would be less than the authorized capital.

It stands for Simplified Proforma for Incorporating Company Electronically Plus.It is a new simplified form for incorporating a company in India and obtaining various statutory approvals and registrations in a single form.
It can be used for incorporating a new company, incorporating a One Person Company (OPC), incorporating a Small Company and incorporating a Producer Company.The SPICe+ form can be used to incorporate a new company, obtain a PAN, TAN, and GST registration, and obtain a DIN for directors in a single form.

Yes, NRIs (Non-Resident Indians) and foreigners can hold shares in a Section 8 company in India, subject to certain conditions and restrictions set by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA).
However, there may be some restrictions on the percentage of shares that can be held by NRIs and foreigners in specific sectors. It is recommended to consult with our expert team at Sure Tax Fincare, to understand the specific regulations and compliance that needs to be followed.

No, a Section 8 Company cannot distribute profits to its members. Any income generated by the company can only be utilized for its objectives as mentioned in its Memorandum of Association (MOA).

Yes, a Section 8 Company can be converted into a for-profit company by following the necessary procedures prescribed under the Companies Act, 2013.

Yes, a Section 8 Company can allot shares to its members or subscribers, subject to the provisions of the Companies Act, 2013 and the rules and regulations prescribed by the Ministry of Corporate Affairs (MCA).

No, it is not mandatory to obtain 12A and 80G registration for a Section 8 Company. However, if the company wants to avail tax exemptions under these sections, it needs to apply for registration under these sections.

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Section 8 Company Registration