What is a Section 8 Company?

Companies who have charitable and non-profit objectives, such entities are referred to as a Section 8 Company. These companies dedicate all their income and profits towards the charitable and non-profit objectives. Which is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment or other similar objectives.

Eligibility to form Section 8 Company:

Any Non-Profit Organization (NPO) can be incorporated as a Sec 8 company that is being associated with:

• Education
• Charity
• Arts
• Social Welfare
• Environmental Protection
• Religion
• Research
• Sports

Documents for Registration of Section 8 Company

• Copy of PAN Card
• Copy of Aadhaar Card
• Address Proof (Bank Statement, Electricity Bill, Telephone Bill)
• Two passport size Photograph
• Ownership Proof House Tax
• No Objection Certificate

Benefits of Registration of Section 8 Company

Section 8 Company has the following benefits:

• No minimum paid-up capital is required.
• Stamp duty registration is not required.
• Tax exemption to those who are donating to a Section 8 Company is eligible for tax exemptions u/s 12A and 80G of the Income Tax Act.
• A registered partnership firm can become a member in its capacity and obtain Directorship

Steps for Section 8 Company Registration Online

Here are the basic steps of Section 8 Company Registration process:

Step1

The first step of the Section 8 company registration process is to create the DIN and DSC of the Directors.

Step 2

Name Approval- The second step is to get the approval of the name of the company.

Step 3

To achieve the RD1 License, it comes under Section 8 of the Company Act, which mentions the fact that the company will be working for the enhancement of science. Moreover, for commerce and the profit, we earn through it will be used for the benefit purpose of their objectives. Additionally, you would need MoA, AoA, and other documents at this stage.

You need to use the following forms:

1. Form INC 12
2. MoA is sent in Form INC 13
3. AoA, Declaration of CA/CWA/CS in Form INC-14
4. Declaration by Directors in Form INC-15
5. Name approval letter and a 3-year estimate of future income and expense of the company

Step 4

Next, you need to apply for a Certificate of Incorporation.

Step 5

Soon after the incorporation of the company, one must apply for PAN and TAN; for this, you will need Forms INC-7,8,10,9,22, DIR-2, and 12 with the ROC.

How can we help you?

Online Legal India™ expert team of highly qualified CA/CS will guide you through the rest of the process for Section 8 Company Registration.

We are economical and give budgeted services for ones who are willing to start a company/business or any other kind of organization requires Registration/ License.

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