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HomearrowStartuparrowSection-8 Company Registration

Section 8 Company Registration in India - Overview

Section 8 Company Registration is a legal process of incorporating a company under Section 8 of the Companies Act, 2013. Section 8 of the Companies Act mentions provisions to establish a company as a non-profit organisation with specific objectives. These include the promotion of arts, commerce, education, sports and science. Section 8 Companies also promote objects like research, social welfare, religion, charity, and environment conservation.

For Section 8 company incorporation, you must first obtain a licence from the Central Government. Following this, you can apply for its incorporation to the Registrar of Companies or ROC. The exact process has been detailed in the further sections. Note that a Section 8 company must only operate with the object specified during registration.

Key Features of Section 8 Company:

  • thumbNon-Profit Business
  • thumbSection 8 Objects
  • thumbLicenced by Central Government
  • thumbOnline Registration
  • thumbQuick & Affordable Incorporation

Checklist & Documents Required for Section 8 Company Registration

To register Section 8 company in India, certain eligibility criterias must be met beforehand. Section 8 Company eligibility criteria depends on the type of structure opted for incorporation. These companies could either be incorporated as Private Limited or Public Limited Companies.

However, both these structures require different criterias to be met. Additionally, Section 8 Company Registration process is incomplete without the submission of proper documents. In the table below, we have listed both the eligibility criteria and Section 8 Company documents required in India. This will help you navigate the Section 8 Company Registration process better.

Checklist
1. Private Limited Company
  • check2 to 200 Shareholders
  • check2 to 15 Directors
  • check1 Resident Indian Director
  • checkValid & Unique Name
  • checkRegistered Office Address
  • checkAdequate Capital
  • checkSection 8 Company Objectives
2. Public Limited Company
  • check7 Shareholders
  • check3 to 15 Directors
  • check1 Resident Indian Director
  • checkValid & Unique Name
  • checkRegistered Office Address
  • checkAdequate Capital
  • checkSection 8 Company Objectives
List of Documents
Documents for Registration1. KYC Documents of Promoters
2. Proof of Registered Address
  • checkPAN
  • checkAdhar
  • checkAddress Proof
  • checkColoured Photo
3. NOC from the Owner of Premises
Documents for Section 8 Licence
  • checkINC-12 Form
  • checkMOA & AOA
  • checkProfessional’s Declaration (INC-14)
  • checkDirector’s Declaration (INC-15)
  • checkList of Proposed Directors
  • checkNext 3 Years Income & Expenditure Statements
  • checkBoard Resolution
  • checkShareholders Resolution
  • checkSectoral / Regulatory Approval
  • checkLast Year’s Financial Statements
  • checkLast Year’s Director’s & Audit Report
  • checkList of Promoters

Section 8 Company Registration Process

Wondering how to register a Section 8 Company in India? At Setindiabiz, we provide full assistance in the Section 8 Company Registration process. Our experts help you prepare and draft the documents required for Section 8 Company Registration accurately. With our services, you can incorporate your section 8 company without any hassle or hindrance.

Here’s a detailed stepwise guide to help you understand our services better!

step1

Decide Section 8 Company Objectives

Section 8 Companies are non-profit entities established and incorporated under Section 8 of the Companies Act. Section 8 restricts the objectives of these companies to the promotion arts, commerce, education, sports, science, and such other prescribed objects. So, the first step is to decide the object of the company for incorporation.

step2

Obtain DSC & DIN

The form for Section 8 Company Registration and Licence both are online. So, they are authenticated or signed by the Authorised Director using a Class 3 Digital Signature. You can acquire the Class 3 Digital Signature online. For this, you can file an application to a Licensed Agency or simply contact us for assistance.

step3

Section 8 Company Name Approval

The next step is to get the proposed name of your Section 8 Company approved by the ROC. For this, you can file an application online on the MCA website. Before applying, check section 8 company name availability to ensure the proposed name gets approved without any objection. We check your Section 8 company name availability and file the application to the ROC with 100% accuracy.

step4

Apply for Section 8 Company Licence

Before applying for Section 8 Company Registration, you must obtain a Section 8 Company Licence by the Central Government. For this, an application in form INC-12 must be filed online on the MCA website. After the form is examined by the Central Government, a licence is granted in form INC-16.

step5

Apply for Section 8 Company Registration

After all the Section 8 Company Registration prerequisites are met, you can proceed with the application process. The application for section 8 company registration is filed online on the MCA website. You must fill out the information correctly and upload the necessary documents in the form. The Form used for the purpose is PART B of SPICE Plus or INC 32.

step6

Issue of Certificate of Incorporation

After the application is submitted, it gets thoroughly examined by the ROC. Upon successful verification of the details and documents, the ROC registers the company for the object specified in the application. It issues a Certificate of Registration in the Company’s name as a conclusive proof registration. Also, CIN number is allotted for unique identification of the company.

Section 8 Company Benefits

Prior to the introduction of Companies Act, no non-profit entities could be set up or incorporated as a corporate structure in India. The Companies Act, through section 8, provides the flexibility of doing so! It offers all the benefits of a regular company to a non-profit organisation, and makes it easier, simpler, and more convenient to operate. Given below are a few prominent section 8 company benefits to help you clearly understand its significance.

  • limited-liability

    Legal Recognition

    Section 8 Companies are legally recognized nonprofit entities in India. This makes them eligible to receive donations, grants, and tax exemptions for charitable activities.

  • attractive-for-Investors

    Limited Liability

    Members' or shareholders' liability is limited to their contributions, providing personal asset protection while pursuing philanthropic objectives.

  • preferred-by-creditors

    Tax Exemptions

    Section 8 Companies can avail tax exemptions on income and donations received, enhancing their financial sustainability for social and charitable causes.

  • easy-to-incorporater

    Perpetual Existence

    These companies have perpetual existence, ensuring the continuity of their charitable initiatives, even in the absence of founders or key members.

  • lower-compliances

    Credibility for Grants

    Registration as a Section 8 Company enhances credibility, facilitating partnerships, collaborations, and access to resources from government and international organisations.

  • flexible-to-manage

    Promotion of Social Causes

    Section 8 Companies are specifically designed to promote social, educational, cultural, and charitable objectives. This enables them to focus on making a positive impact on society.

We Assist In Section 8 Company Registration Online!

Looking for Section 8 Company Registration Consultant in India? At Setindiabiz, we provide full assistance throughout the Section 8 Company Registration process. Our experts determine the eligibility of your company and assist in getting the Section 8 Company licence as well as registration. We have a robust team of qualified CA, CS, and legal experts available for 24*7 consultations free of cost!

  • gRevew Proven Expertise
  • gRevew Nationwide Presence
  • gRevew Online Service
  • gRevew Custom Support
  • gRevew Trusted by Startup India

Frequently Asked Questions

1.  What is the law on the name of a company registered under Section 8?

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2.  Can Section 8 Company raise capital through foreign direct investment (FDI)?

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3.  Can Section 8 Company invest in another company or form a subsidiary with the profit motive?

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4.  What is the format of the NOC that a company owner must issue?

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5.  Can co-working office address be the registered address of the company?

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6.  Can a section 8 company be registered as an unlimited company?

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7.  Can a One Person Company be converted into a Section 8 Company?

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8.  Can an OPC become a member / shareholder of a Section 8 company?

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9.  Can an LLP or a Partnership Firm become the member of a Company?

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10.  Can an LLP or a Partnership firm be converted into a Section 8 Company?

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11.  What is the purpose of INC 12 application in section 8 company registration?

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12.  Can a Trust become a member or shareholder of a Section 8 Company?

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13.  Can a co-operative society become a member of a Section 8 company?

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14.  What are the tax benefits that a section 8 company can have?

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15.  Are accounting standards applicable to company registered under section 8?

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16.  What is Section 8 Company Compliance under the Companies Act?

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17.  What are Section 8 Company Registration fees?

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18.  Can you set up Section 8 Company as a Microfinance Company?

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