Register a Section 8
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A Section 8 Company is a non-profit organization registered under Section 8 of the Companies Act, 2013. Unlike private or public limited companies, Section 8 companies are formed with the primary objective of promoting charitable activities such as commerce, art, science, education, research, social welfare, sports, and religion. The profits or income of this company cannot be distributed among its shareholders; instead, it must be reinvested into achieving its charitable goals.

Key Features of a Section 8 Company

• Registered under the Companies Act, 2013
• Functions as a non-profit organization
• Can operate as a private or public company
• Enjoys exemptions from several provisions of the Companies Act
• No minimum paid-up capital required
• Limited liability for members
• Profits must be utilized solely for the company’s objectives

Who Can Form a Section 8 Company?

Any individual or group intending to promote charitable activities can form a Section 8 Company.

• Indian citizens
• Non-Resident Indians (NRIs)
• Companies and associations
• Societies or trusts looking to restructure

Minimum of two directors for a private Section 8 Company and three for a public Section 8 Company. At least one director must be a resident of India.:contentReference[oaicite:7]{index=7}

Mandatory Legal Requirements

• Main objective must be to promote charitable or not-for-profit activities
• Profits, if any, must be reinvested into the company’s objectives
• No dividend should be paid to shareholders
• Necessary approvals must be obtained from the Registrar of Companies (ROC) and Regional Director (RD)

Documents Required for Registration

For Directors and Shareholders:

• PAN card
• Aadhaar card
• Passport (for foreign nationals or NRIs)
• Latest utility bill (as address proof)
• Passport-size photographs

For Registered Office:

• Rent agreement (if rented)
• No-objection certificate (NOC) from the property owner
• Recent utility bill (not older than 2 months)

Registration Process

1. Digital Signature Certificate (DSC): Obtain DSCs for all proposed directors.
2. Director Identification Number (DIN): Apply for DIN alongside incorporation.
3. Name Approval: Apply for name reservation via RUN (Reserve Unique Name) or SPICe+ Part A.
4. Drafting MOA and AOA: Draft the Memorandum of Association (MOA) and Articles of Association (AOA).
5. Application for License (INC-12): Submit application to the Regional Director for license issuance.
6. Filing SPICe+ Part B: Submit company incorporation forms with necessary attachments.
7. Certificate of Incorporation: Upon approval, receive the registration certificate along with the Section 8 Company license.

Tax Exemptions: Section 12AA and 80G

• Section 12AA: Grants tax exemption on income used for charitable purposes.
• Section 80G: Allows donors to claim tax deductions for donations made to the company.

Benefits of Section 8 Company Registration

• Tax exemptions under various provisions of the Income Tax Act
• Government recognition, enhancing transparency and trust
• Separate legal identity from its shareholders
• No minimum capital requirement
• Perpetual succession ensures continuity
• Stamp duty exemption reduces registration costs
• Eligibility for various funding opportunities

Post-Registration Compliance Requirements

• Maintain proper books of accounts
• File annual returns with the ROC
• Conduct regular board meetings
• Maintain records of minutes and resolutions
• File income tax returns annually
• Ensure all activities align with stated charitable objectives
• Submit annual filings to the Ministry of Corporate Affairs (MCA)

FAQs

• Q1: What is a Section 8 Company in simple terms?
  A: A Section 8 Company is a legal entity formed for charitable or not-for-profit purposes, where profits are reinvested for social welfare and not distributed among shareholders.
• Q2: Can NRIs or foreign nationals form a Section 8 Company?
  A: Yes, provided at least one director is a resident of India.
• Q3: How long does it take to complete Section 8 Company registration online?
  A: Typically, it takes 15–20 working days.
• Q4: Is there any capital requirement?
  A: No, there is no minimum capital requirement.
• Q5: Can a Section 8 Company earn a profit?
  A: Yes, but profits must be used solely to promote its charitable objectives.