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SECTION-8 COMPANY

FEATURES
limited-liability

Limited Liability

compliance

Lesser Compliance

12-A-exemption

12A Exemption

80-G-benefit-1

80G Benefit

charitable-trust

Suitable for Charitable/ Religious Work

Eligibility

  • Two Directors
  • Two Shareholders

Register Now
@ ₹5499*/-

*Basic Package

SECTION 8 COMPANY

Section 8 Company or a Non-Profit company is an entity that functions for the promotion and nourishment of activities of social object and public welfare like arts, science, sports, education, research, social welfare, religion, charity and protection of environment. Section 8 companies are not profit oriented. If at all such a company ends up earning profit, it cannot be distributed among its members or owners. Profits and donations must be applied only to the objects of the company. NGOs can be registered as Section 8 Companies, Trusts or Societies. However, registering as Section 8 Company is the most popular form of NGO in India on account of the ease of registration and management in comparison to a Trust or Society.

It requires a minimum of 2 directors, of which at least one a resident Indian, and 2 shareholders to start a Section 8 Company. Directors and shareholders can be the same person as well. Requirement of minimum capital is not applicable for this type of companies.

Conversion

Section 8 company can be converted into Private Company provided the former manages to pass a Special Resolution pertaining to conversion in its general meeting, furnish explanatory statement, and get NOC from authorities from which the company had obtained special status, privilege, benefit, exemption or grant.

Taxation of Section 8 Company

This form of company is eligible for getting itself registered under section 12A of the Income Tax Act so that its income remaining after deducting expenses is exempted from Income Tax to the extent of 15%. It may also get itself registered under Section 80G so that people who donate to the company also get deductions of these amounts in their Income Tax return.

BASIC PACKAGE

To Register your Private Limited Company
₹ 5499/-*
  • 2 DIN + 2 DSC
  • MOA + AOA
  • 1 RUN Name Approval
  • Professional Tax Regiration + PAN + TAN
  • Bank account opening documentation support
  • Commencement of Business Certificate
  • Certificate of Incorporation
Register Now
* One-time professional fees.
POPULAR

Registration Process

The first step to registration is applying for the name of the Section 8 Company. The proposed name should include the word Foundation, Forum, Association, Federation, Chambers, Confederation, Council or Electoral Trust.

It is requird of all proposed directors to obtain Digital Signature Certificate (DSC) from a government recognized certifying agency. Identity proof, address proof, contact details and passport size photographs of the directors are required to obtain DSC. The Director Identification Number (DIN) will be automatically created after the procurement of DSC.

Once the name is approved and DSC is obtained, the incorporation process can be initiated by preparing and filing the MoA and AOA.

After payment of fee and proper verification, the certificate of company incorporation will be issued by the Registrar of Companies along with a unique Company Identification Number.

Documents Required

For Directors/Shareholders:

1. PAN Card

(Mandatory For Indian Resident)

2. ID Proof

(Any one)

  • Passport
  • Driving License
  • Voter ID

3. Address Proof

(Any one)

  • Mobile Bill/ Telephone Bill​
  • Recent Utility Bills in the name of director/ shareholder​
  • Latest Bank Statement

For Company in Registration:

1. During Incorporation

Consent Premises:

  • No Objection Letter for Premises

Authorization from the owner or  authorized occupant of the premises.

  • Address Proof

Utility Bill in owner’s name.

  • Passport size Photographs

For Directors and Shareholders.

2. Post Incorporation

Following are the post incorporation compliances:

  • Bank account gets opened by default through ROC
  • If at the time of incorporation address is given correspondence then only we have to file documents in form INC-22 for registered office for company
  • Conduct first Board Meeting within 30 days from the date of incorporation
  • Appoint first auditor within 30 days of incorporation
  • Deposit the share capital money in the bank account within 180 days from the date of incorporation
  • Issue share certificates to the shareholders of the company within 60 days from the date of incorporation of the company
  • File a declaration of commencement of business within 180 days from the date of incorporation
  • Maintain Statutory Registers and Book of Accounts

For Owned Premises

(Any one)

  • Registered titled document in company’s name.
  • Utility in company’s name.

For Rented Premises

(Any one)

  • Lease/rent agreement in company’s name.
  • One Rent Receipt.
  • Utility bill in owner’s name.

For Consented Premises

(Any one)

  • NoC from the owner of the premises.
  • Utility bill in owner’s name.

2. Post Incorporation

Following are the post incorporation compliances:

  • Open a Bank Account in the name of the Company
  • Registered office within 15 days from the date of incorporation
  • Conduct first Board Meeting within 30 days from the date of incorporation
  • Appoint first auditor within 30 days of incorporation
  • Deposit the share capital money in the bank account within 180 days from the date of incorporation
  • Issue share certificates to the shareholders of the company within 60 days from the date of incorporation of the company
  • File a declaration of commencement of business within 180 days from the date of incorporation
  • Maintain Statutory Registers and Book of Accounts

For Owned Premises

(Any one)

  • Registered titled document in company’s name.
  • Utility in company’s name.

For Rented Premises

(Any one)

  • Lease/rent agreement in company’s name.
  • One Rent Receipt.
  • Utility bill in owner’s name.

For Consented Premises

(Any one)

  • NoC from the owner of the premises.
  • Utility bill in owner’s name.

Notes:

  • All the documents must be apostilled or notarized in case of foreign nationals.
  • All the documents must be self-attested
  • Utility bills shall not be older than 2 months as on date of application

FAQ

A Section 8 Company needs a minimum of 2 directors to form. Minimum number of shareholders required too is 2.

At least one of the proposed directors must be a resident Indian, for a Section 8 Company.

Yes, a statement showing details of assets and liabilities of the company needs to be furnished along with the application.

Yes, a Section 8 Company should furnish an estimate of future annual income and expenditure of the proposed company, specifying its source of income as well as object of expenditure.

No, NGOs can be registered as Trusts and Societies as well. However, Section 8 Company is mostly preferred in India on grounds of ease of registration and management.

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