The process of registering a Section 8 company is exactly the same as that of registering a “limited company”. The application used for the process for registering a section 8 company in India is called the online SPICe+ form, available on the official website of the Ministry of Corporate Affairs. SPICe+ application is divided into two parts- PART A and PART B. While PART A contains the application for reserving the name of the company, PART B contains the application for its registration, along with 10 other additional services which includes DIN, PAN, TAN, EPF registration, ESI registration, Professional Tax registration, GST registration, Shops and Establishment registration, and opening a bank account.
Registering a Section 8 company in India is beneficial for people wishing to contribute towards the welfare of the society in multiple aspects. For instance, the shareholders have the option of registering the company as a limited liability, thereby reducing the obligations of the shareholders. Moreover, there is no minimum capital requirement for setting up a section 8 company, which results in reducing the cost of formation of a section 8 company. Section 8 companies also receive several exemptions on the payment of taxes and other procedural compliances under the Income Tax Act. Such companies are more credible among other kinds of NGOs, as it operates as an organisation licensed by the Central Government.