Section 8 Company Registration

What is Section 8 Company Registration:

A Section 8 company, under the Companies Act of 2013 in India, is a non-profit entity created primarily to advance causes such as art, science, commerce, education, research, social welfare, religion, charity, environmental protection, or any other charitable objective.

Unlocking the Advantages of a Section 8 Company:

• Financial Flexibility:
  • No Capital Barriers: Section 8 companies have the freedom to adjust their capital structure without minimum capital requirements, enabling funds through donations and subscriptions.
  • Tax Benefits: Enjoy exemptions from certain taxation obligations, including CARO and Section 80G of the Income Tax Act, 1961.
  • Stamp Duty Exemption: Incorporation of a Section 8 company is free from stamp duty typically imposed on MoA and AoA of other company types.
• Distinct Identity and Limited Liability:
  • Separate Legal Existence: Ensures continuity regardless of member changes; even registered partnership firms can participate as members.
  • Protection for Members: Limits members' liability to the value of their subscribed shares, shielding them from personal responsibility for company losses.
• Enhanced Credibility and Donor Benefits:
  • Regulatory Compliance and Trust: Subject to regulatory oversight, fostering trust through mandatory audits and safeguards against alterations to non-profit objectives.
  • Incentivizing Generosity: Donations to Section 8 companies are eligible for tax exemptions under Sections 12A and 80G of the Income Tax Act, encouraging philanthropic support.

Eligibility Criteria for Registration:

• Individuals and HUFs Welcome: Individuals and Hindu Undivided Families can initiate formation.
• Director and Shareholder Requirements: Minimum of two individuals fulfilling compliances outlined in the Act.
• Resident Director Mandate: At least one director must be a resident of India.
• Purpose-Driven Objectives: Objectives must align with specific purposes like social welfare, education, sports promotion, etc.
• Non-Profit Commitment: Prohibits remuneration for founders, directors, and members, reinvesting profits into the company's objectives.

Documents required for Section 8 company registration:

• Copy of either Driving License or Voter ID
• Aadhar Card copy
• No objection certificate from the owner of the property
• Latest bank statement or utility bill copy for address verification
• Photographs in passport size for each director
• PAN Card copy

Procedure for Registration:

Getting Digital Signature Certificates (DSCs) for Directors:

• Apply for DSCs: Directors need to request Digital Signature Certificates (DSCs) from an authorized Certifying Authority (CA).
• Provide ID and Address Proof: Submit valid Identity (ID) and Address Proof documents with the application.
• Receive and Install DSCs: Once approved, collect the DSCs and set them up on your systems.

Getting Director Identification Numbers (DINs):

• Fill Form DIR-3: Use this form to apply for DINs electronically for the directors.
• Attach Necessary Documents: Include scanned copies of ID and Address Proofs, signed consent forms, and passport-sized photos.
• ROC Approval: The Registrar of Companies (ROC) reviews the application and assigns unique DINs.

Applying for Section 8 License:

• Submit Form INC-12: File this form with the ROC to request a Section 8 license.
• Attach Required Papers: Include Memorandum of Association (MoA), Articles of Association (AoA), and other specified documents.
• ROC Assessment: Upon scrutiny and approval, you'll receive the Section 8 license.

Incorporating the Company:

• Use SPICe+ Form: Submit this form to officially incorporate the company with the ROC.
• Attach Necessary Documents: Include the granted Section 8 license and other requested papers.
• ROC Review: If everything is in order, you'll get a Certificate of Incorporation (COI) and a Company Identification Number (CIN).

Post-Incorporation Tasks:

• Open a Corporate Bank Account: Set up a dedicated account for the company.
• Get PAN and TAN: Obtain a Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for the company.
• Follow Laws: Ensure compliance with the Companies Act, 2013, and relevant tax regulations.

Why choose Ecfile

Reasons to Choose Ecfile for Section 8 Company Registration:

• Ease of Use: Ecfile simplifies the registration process with step-by-step guidance, making it user-friendly for those unfamiliar with legal procedures.
• Documentation Support: Offers document templates and guidance, reducing errors and ensuring correct submission of necessary paperwork.
• Expert Assistance: Some platforms provide access to experts or customer support throughout the registration process.
• Cost-Effective: Online services may offer competitive pricing compared to traditional consultancy services, potentially saving money.