Section 8 Company

India's fastest registration turnaround time, with a guarantee that your documents will be uploaded to the government system in less than seven days, or your money back. *T&C*

Open and honest process beginning at just ₹499 + GST

Start Company Registration



About Section 8 Company Registration

Section 8 Company Registration

A non-profit company with a Section 8 designation is one that supports sports, education, science, the arts, and charity endeavours. These businesses' profits aren't divided among their members; instead, they're used to further these goals. Understanding Section 8 companies, document requirements, and the company incorporation process are crucial.

We at Taxhint Advisors offer comprehensive services for Indian Section 8 company registration. Our team of professionals provides professional and hassle-free services to assist you in establishing a Section 8 corporation as soon as possible. Get in touch with us right now to take advantage of our skilled services for setting up your Section 8 Company in India.

About Section 8 Company


What is Section 8 Company? - Companies Act, 2013

An organisation whose goals are to promote the arts, business, science, research, education, sports, charity, social welfare, religion, the environment, or other comparable activities is classified as a Section 8 company under the Companies Act of 2013. These organisations don't pay dividends to their shareholders; instead, they use their earnings to further their goals.

An overview of the company registration under Section 8

An organisation formed to support non-profit endeavours like education, social welfare, environmental protection, sports, the arts, charitable giving, and more is known as a Section 8 company. This complies with the 2013 Companies Act provisions.

Important Aspects of the Section 8 Company Act

  • Non-Governmental Organisations (NGOs) in India may register as a non-profit organisation under Section 8 Company of the Companies Act, 2013 or with the Registrar of Societies.
  • The profits made by Section 8 Companies are not allowed to be divided among shareholders or used for reasons other than charitable purposes.
  • According to the Company Act of 1956, Section 8 Companies are comparable to the former Section 25 Company. These are now recognised as Section 8 Companies under the current Company Act.
  • Section Eight Businesses must abide by the rules set forth in the Companies Act of 2013. They must comply with the IT Act and GST, keep books of accounts, and file returns with the Registrar of Companies (ROCs).
  • The government must approve any modifications to the charter documents, such as the Memorandum of Association (MoA) and Articles of Association (AoA).


Benefits of Opening a Section 8 Company in India

There are many benefits to incorporating a Section 8 corporation in India, some of which are listed here.

Tax Exemption

Due to their benevolent use of profits, section 8 corporations that are registered under section 12AA of the Income Tax Act are exempt from 100% of the tax. Given that the earnings made by these kinds of businesses are not subject to taxes, this is a huge advantage.

No Minimum Capital Requirement

There is no minimum capital requirement for Section 8 corporations, in contrast to public limited companies. They have more flexibility because they can modify their capital structure in accordance with their growth.

Separate Legal Entity

Like other registered companies, Section 8 companies are perpetually incorporated and have their own legal personality. They get greater legitimacy as well as greater independence and legal status as a result.

Increased Credibility

Because Section 8 corporations must adhere to stringent legal compliance standards, their legal standing is perceived as more credible. Section 8 entities are more trustworthy because, in contrast to NGOs and trusts, they adhere to strict compliance requirements after registration.

No Title Required

Companies under Section 8 are allowed to select any name they like when registering. They are not needed to include "Section 8" to their name, in contrast to other registered constructions.


Eligibility Criteria for Incorporation of the Section 8 Company

In India, companies seeking to establish a Section 8 must fulfil specific eligibility requirements.

  • A Hindu Undivided Family (HUF) or national of India may incorporate a Section 8 Company.

  • There must be one director at minimum for the entity.

  • The Section 8 Company Act need to be primarily focused on advancing the arts and sciences, sports, philanthropic endeavours, education, or giving financial support to people from lower socioeconomic backgrounds.

  • These requirements for qualifying guarantee that the Section 8 Company works to advance social welfare and advance societal well-being.


Legal prerequisites that must be met by Section 8 Companies

Certain legal requirements must be met before submitting an application for India's Section 8 company incorporation process. The following criteria must be met:

Number of Directors

In order to function as a private limited company, the Section 8 corporation must have a minimum of two directors. However, in order for the business to function as a public limited company, a minimum of three directors are needed.

Number of Members

The Ministry of Corporate Affairs (MCA) caps the number of members at 200 if the Section 8 Company Act is intended to operate as a private limited company. For Section 8 entities with a corporate structure similar to a public limited company, there is no such cap.

Capital Requirement and Name

Companies Act of 2013 states that Section 8 corporations are exempt from maintaining a minimum paid-up capital requirement. Furthermore, NGOs that function as Section 8 entities are exempt from having to add words like restricted or private limited to their name.

Company Objects

The only organisations that can register under Section 8 are those with non-profit goals. These objectives, for which the company was founded, must be expressly stated in the Memorandum of Association and Articles of Association. The Section 8 entity's earnings must either be reinvested in the organisation or used for charitable purposes. Members of Section 8 entities are not entitled to any portion of the entities' profits. These regulatory requirements guarantee transparency in the operations of Section 8 firms and their stated goal of advancing social welfare.


Documents Required for Section 8 Company Incorporation

To finish the Section 8 company incorporation process in India, the following documents are needed:

  • Articles of Association (AOA) and Memorandum of Association (MOA)
  • Declaration by the first director(s) and subscriber(s) (an affidavit is not required)
  • Proof of office address, such as a copy of utility bills like electricity, water, or gas bill
  • Copy of the certificate of incorporation (COI) of an overseas corporate body (if any)
  • A resolution passed by the promoter company
  • Consent of Nominee (INC-3)
  • Residential and identity proof of nominees and subscribers
  • Applicant's identity and residential proof
  • Digital Signature Certificate (DSC)
  • Declaration of unregistered companies.

You may guarantee quick and easy Section 8 company incorporation procedures by supplying these documents.


Section 8 Company Incorporation Process

Step 1: Obtain Digital Signature Certificate (DSC)

Obtaining a Digital Signature Certificate (DSC) for the intended directors of the Section 8 Company is the first stage. To file documents electronically with the Ministry of Corporate Affairs (MCA), this certificate is needed. The DIN can be obtained by completing Form DIR-3, which needs to be submitted with the proposed directors' DSC.

Forms to be used: DIR-3, DSC

Step 2: Obtain Director Identification Number (DIN)

The proposed directors must next apply for a Director Identification Number (DIN) after receiving the DSC. The MCA assigns the DIN number, a special identifying number, to people who want to be directors of companies in India.

Forms to be used: DIR-3

Step 3: Reserve the Company Name

The suggested company's name needs to be reserved with the MCA. The name of the Section 8 firm must be original and distinct from any other name already in use. The company name is reserved using Form INC-1.

Forms to be used: INC-1

Step 4: File the Application for Incorporation

The next step is to apply for Section 8 Company incorporation once the company name has been authorised. Together with the company's articles of association (AOA) and memorandum of association (MOA), the application for incorporation is submitted on Form INC-32.

Forms to be used: INC-32, MOA, and AOA

Step 5: Obtain a License for Section 8 Company

Getting a licence for the Section 8 Company is the next step once the incorporation application is accepted. The licence is obtained via Form INC-12. It ought to be submitted with the required paperwork.

Forms to be used: INC-12