A Section 8 Company is a special form of company under the Companies Act, 2013 in India, designated for promoting various social, cultural, and charitable activities. These companies are formed to advance fields such as commerce, arts, science, education, research, social welfare, religion, charity, environmental protection, and more.
How to Register a Section 8 Company in India: A Step-by-Step Guide
Are you looking to establish a non-profit organization in India? Learn how to register a Section 8 Company with this comprehensive guide.
Steps for Section 8 Company Registration
- Obtain Digital Signature Certificate (DSC):
- The directors must obtain a DSC to sign electronic documents during the registration process.
- Obtain Director Identification Number (DIN):
- Apply for a DIN for all directors. This can be done concurrently with the incorporation process.
- Name Approval:
- Reserve your company name through the RUN (Reserve Unique Name) service on the Ministry of Corporate Affairs (MCA) portal.
- Apply for Section 8 Company License:
- File Form INC-12 to apply for a license from the Regional Director, MCA.
- File Incorporation Documents:
- Complete and file the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form on the MCA portal, which includes services such as name reservation, incorporation, DIN allotment, PAN, and TAN.
- Draft Memorandum of Association (MOA) and Articles of Association (AOA):
- Prepare the MOA and AOA, which define the company’s objectives and rules governing its internal management.
- File the Incorporation Documents:
- Submit the SPICe+ form, MOA, AOA, and other necessary documents on the MCA portal.
- Certificate of Incorporation:
- Once the documents are verified and approved, the Registrar of Companies (ROC) issues a Certificate of Incorporation (COI), signifying the official formation of the company.
Required Documents for Section 8 Company Registration
- Identity Proof: PAN card, passport, or any government-issued ID of the directors.
- Address Proof: Aadhaar card, voter ID, or utility bill of the directors.
- Registered Office Address Proof: Rent agreement, utility bill, or NOC from the property owner.
- Photographs: Passport-sized photographs of the directors.
Benefits of a Section 8 Company
- Limited Liability: Directors’ liability is limited to their shareholding.
- Separate Legal Entity: The company is a distinct legal entity from its members.
- Tax Benefits: Enjoy tax benefits under Section 12A and deductions under Section 80G of the Income Tax Act, 1961.
- No Minimum Capital Requirement: There is no minimum capital requirement for incorporation.
- Ease of Management: Fewer procedural compliances compared to other types of companies.
By following this guide, you can successfully register your Section 8 Company and start your non-profit organization. If you have any further questions or need additional assistance, feel free to ask! 😊