in just 20,500/- (inclusive of all taxes & fees)
Keynotes on Section 8 Company Registration
DSC & DIN – 3000
Company Name Reservation – 1000
MOA & AOA & Government Fees & Incorporation fees - Rs 6000-8000*
Notary and Stamps – 2000
Professional Fees- 8000-10000
One of the main benefits of running a section 8 company is that you have an opportunity to serve the community via funds and volunteer work. It's also an opportunity to solve an issue, which is not good for the community. We respect your dream to make a change while serving society.
Section 8 Company is registered with the Ministry of Corporate Affairs, wherein NGO/Trusts and Societies are registered under the State laws. Section- 8 Company is recommended for the big operational activities like Research Center, Technical College, hospital etc.
According to Section-8 of Indian Companies Act, 1956 (Old section 25 of Companies Act, 1956), a section 8 company can be established 'for promoting commerce, art, science, religion, charity or any other useful object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.
For a section-8 company, the main instrument is a Memorandum and articles of association (no stamp paper required).
A section-8 Company needs a minimum of three members; there is no upper limit to the number of members.
The Board of Management is in the form of a Board of directors or managing committee.
A section 8 company has various advantages when comparing with Trust or Society like improved recognition and better legal standing.
Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.
Decision : - Is a Section 8 Company right fit for you to start your non-profit operations.
Management : - Trusts are managed by Trustees but Section 8 Company does not have the concept of Trustees. Hence, Section 8 Companies are managed by the Board of Directors based on the MOA and AOA of the Section 8 Company.
Change Management : - The management of a Section 8 Company can be easily transferred or changed from one person to another. Section 8 Company can also be controlled by shareholders.
Organized & Better Credibility : - A Section 8 Company has improved recognition, Better legal standing, Higher credibility amongst donors, and Support of Government departments.
Uninterrupted Existence : - A Section 8 has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved.
There are certain advantages of registering an NGO or NPO under Section 8 of Companies Act 2013. Some of them are as follows :
No minimum capital : - There is no minimum capital requirement for a Section 8 Company Registration in India.
Tax Benefits : - There are numerous tax benefits under the Section 8 Company Registration in India.
No Stamp Duty : - No stamp duty is imposed on the incorporation of Section 8 Company in India as it is against the provision of the payment of stamp duty on the MoA and AoA of the private limited company.
Separate Legal Identity : - Section 8 Company registration has a separate legal entity. It acquires a distinct legal identity from its members.
Credibility : - Section 8 Company has more credibility than any other form of a charitable organisation. It is under the strict provision of the Companies Act which requires a mandatory audit every year.
Exemption to the donators : - Under Section 80G, the exemption is granted to the donators if the section 8 company is registered under section 80G.
Eligibility criteria for a Section 8 company registration are as follows : -
An Individual or HUF or limited Company is eligible to start a Section- 8 company registration in India.
Two or more person who will act as a shareholder or Director of the company should fulfill all the requirements and compliances of the Section 8 Company registration.
At least one of the directors shall be a resident of India. However, a firm may be a member of the company registered under this section.
The objective should be the promotion of sports, social welfare, the advancement of science and art, education and financial assistance to lower income groups.
The surplus generated must be used for meeting the principal objective of the section 8 company only.
Founders, members, and directors of the company cannot draw any remuneration in any form of cash or kind.
No profit should be distributed among the members and director of the company directly or indirectly
The company should have the clear vision and project plan for the next three years.
Section 8 company registration procedure is as follows : -
Prepare DSC and file Name Approval
The very first step for Section 8 company registration is to prepare DSC. Apply for Digital Signature Certificate (DSC) as soon as possible.
Section 8 companies should contain words like Foundation, Society, Association, Council, Club, charities, Academy, organisation, Federation, Institute, Chamber of Commerce, Development and many more.
Apply for Section 8 Company registration license from Regional Director, MCA (INC-12)
After Name approval, we will apply for Section 8 company registration license from Regional director.
The regional director will review the objectives, plans and will grant a permit for Section 8 Company registration. RD usually takes 7-10 days to issue a license to operate as a section 8 company.
Filing of Section 8 Incorporation Forms on MCA Portal
After getting approval from the regional director, we will proceed to file the section 8 company registration application with the requisite documents before ROC.
Once all clarifications are provided to ROC, the ROC shall issue a Certificate of Incorporation along with a Company Identification Number (CIN).
MoA and AoA file submission
Once you get the License, you need to draft the Memorandum of Association (MoA) and Article of Association (AoA) to file section 8 company registration applications.
The Object of the company will be detailed in the MoA and the rules, and the by-laws will be mentioned in the AoA.
PAN, TAN and Bank Account
You must have your PAN, TAN and bank account ready while going for Section- 8 Company registration in India.
Electricity / Gas bill or Phone / Mobile bill
Passport Size Photo
NOC from the Owner
Utility Bills with
House Tax Receipt
Proof of Registry
|Forms required||Purpose of the form|
|INC 1/RUN||For the reservation of the proposed company name|
|INC 7||Application for company registration as Section 8|
|INC 9||An affidavit from every subscriber and director|
|INC 12||Application for grant of license for operating the company as Section 8|
|INC 13||MOA (Memorandum of Association) of the company|
|INC 14||Declaration from a Chartered Account in practice|
|INC 15||Declaration from every entity filing the application|
|INC 16||License for company incorporation as Section 8|
|INC 22||For Registered Office|
|DIR 2||Consent to act as a Director|
|DIR 3||Application to Registrar of Companies (ROC) to obtain DIN (Director Identification Number)|
|DIR 12||Appointment of Directors|
We have already discussed a few significant features of registering Section 8 companies in India. Now, let's dig a little deep and find out the advantages of section 8 company over trust and society. They are as follows :
No minimum capital requirement
For section 8 companies, there isn't any prescribed minimum capital requirement as in the public company registration and others. However, at any stage, there could be alteration in the capital structure as required for the company's growth. Further, there could be direct funding and donations to Section 8 company.
Since section 8 companies are a form of a non-profit organization, they can avail several tax exemptions, especially the donors who contribute to such companies. Hence, under Section 80G of the Income Tax Act, 1961, the donors can claim the tax benefit against the donation they have made to the company.
Separate legal entity
Just like other business entities, a section 8 company is a separate legal entity and stands distinct from its members. Further, the company also has perpetual existence.
Exempted from paying stamp duty
Section 8 companies have exemptions from paying the stamp duty required for incorporation as applicable in the case of other business entities such as the private and public company.
Transfer of ownership/title is easy
Unlike other business entities, the transfer of title or ownership is easily transferable. Further, the interest and shares of other members of the company are also considered as movable property and easy to transfer. As a result, it's easy for the members of the company to leave and transfer its ownership to others.
Use of title
Unlike other companies, such as private limited company and public limited company, LLP, etc. where it's imperative to use the title 'limited company' or 'LLP' in the end, section 8 companies have got the exemption from the use of the title. Further, such companies can still execute their operations without informing the public of their status as limited liability. However, they need to add a suffix such as foundations, associations, etc.
Such companies hold more credibility than other non-profit organizations be it a Society or Trust. Since the licensing is done by the Central Government, the rules are stringent when compared to other companies. Hence, changes in MOA (memorandum of Association) and AOA (Articles of Association) aren't possible in any situation or at any stage. Therefore, due to strict regulations, section 8 companies are more reliable and hold better credibility than others.
Hence, from the above discussion, it's quite evident why sec 8 company is preferred over NGO and trust.
Well, everything has its pros and cons and hence, so does section 8 companies also have. We have observed its benefits; let's find its disadvantages as well so that you can identify whether it's suitable for you to go with Section 8 Company or not.
Limitations of Section 8 companies in India are as follows :
The profits earned should only be used for the promotion of the company or satisfying its objectives of encouraging arts, commerce, science, etc. Apart from this, nobody else can claim the profit of the company be it, director or shareholder.
Unlike other companies, the members of the company can't be appointed as the remunerating officer.
Making changes in the MOA and AOA of the company isn't possible due to the stringent rules and regulations of the company. This can be counted both in advantages and disadvantages.
Declaring the dividend or distribution of profit among its member is not allowed.
Additionally, except the reimbursement of pocket expenses, reasonable rent on the premises or reasonable interest on lent, no benefit or remuneration shall be paid to its members whether servant or officer of the company.
If a company doesn't follow the terms and regulations of Section 8, then as per the provisions of sub-section (11) of Section 8 of the Companies Act, 2013, the company shall be subject to fraudulent actions and shall be held punishable. Furthermore, the company would have to pay :
1. A fine of Rs. 10 lakhs which could further extend to Rs. 1 crore.
2. Every director, along with the officer of the company in default shall be punishable. Besides, they would face imprisonment for the terms of three years with a fine not less than Rs. 25,000. However, this fine could extend to Rs. 25 lakh.
3. Or the guilty will need to serve both.
Yes, you need a minimum of two directors for a section 8 company registration.
The entire procedure is 100% online and you don't have to be present at our office or any other office for incorporation. A scanned copy of documents has to be sent via mail.
There is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.
oneclickbusinesssolutions.com can incorporate a section 8 Company in less than 20 days. The time taken also depends on relevant documents provided by the applicant and speed of approvals from government. To ensure speedy registration, please pick a unique name for the proposed Company and make sure you have all the required documents prior to starting the registration process.
Yes, it is necessary to have a non-profit motive to incorporate a Section 8 company.
The life span of the company is not dependent on or related to the life of any particular person(s) or individual(s). It could go on indefinitely until it accomplishes its objective, merges with another such company, or goes bankrupt.
one click business solutions provides Section 8 Company incorporation services across India in all cities. We have done Section 8 company registration in Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur and other Indian cities.
oneclickbusinesssolutions.com is one of the best online service portals to help register Section 8 Companies in India. We have 10 years of experience in application of Section 8 Company registration. one click business solutions has 30+ regional offices in India and expand its network in India with 2000+ customers for Section 8 Company.