What is Section 8 Company?

Establishing an organisation under Section 8 of the Companies Act, 2013, [earlier known as a Section 25 Company under the Companies Act, 1956], provides a structured approach for those seeking to make a positive impact in society. These entities operate within the regulatory framework outlined in the Companies Act, 2013, and are classified as limited companies.

Under Section 8, the MCA grants exclusive license to these organisations, subject to three key conditions:

#. Charitable Purpose: The organization must be registered with the primary & sole objective of serving charitable causes.

#. Income Allocation: All generated income and profits are earmarked for fulfilling the charitable objectives.

#. Dividend Restrictions: Members of the organization are prohibited from receiving dividends/surplus/profits.

By adhering to these requirements, your NGO not only contributes to societal welfare but also benefits from the advantages associated with Section 8 Company Registration.

Stepwise process for Section 8 Company Registration

STEP 1

Call our experts at: 8800188697, understand your eligibility criteria and get guidance for document preparation.

STEP 2

Our experts provide you DSC, DIN and reserve a unique name after document submission.

STEP 3

Experienced Section 8 Company Registration professionals from our team file your application form on your behalf without you having to worry about anything.

STEP 4

Upon approval, the MCA will issue a Certificate of Incorporation (INC-16) and we will deliver it to your email.

Benefits of Section 8 Company Registration in India

# Save on taxes: Section 8 companies qualify for complete tax exemption on profits with 12A and 80G Registration used for charitable purposes. Thus, helping you have significant tax savings.

# No Minimum Capital Requirement: There's no minimum capital requirement to register a Section 8 company.

# Reduced registration fees: Section 8 companies are exempt from stamp duty during registration, saving you money on establishment costs.

# Separate legal entity: Section 8 companies operate as a distinct legal entity, fostering credibility and autonomy.

# Enhanced trust: Strict adherence to legal guidelines makes Section 8 companies more trustworthy compared to society and trusts.

# Greater naming freedom: You can choose a name that best reflects your organisation's mission without being required to include "Section 8" in the title.

Eligibility Criteria for Section 8 Company Registration

You have to satisfy the following three conditions to be eligible for Section 8 Company Registration:

#1. Promoting social good: This includes a wide range of areas such as science, commerce, education, art, sports, research, religion, charity, social welfare, and environmental protection.

#2. Reinvesting profits: Any income generated by the company must be used to further its social objectives, not distributed as dividends to members.

#3. Non-profit focus: Distributing profits to members is not a goal of a Section 8 Company.

Documents Requirement for Section 8 Company Registration

1. Identity Proof (Directors):

# PAN Card

# Passport size Photo

# One of the following identity proof for each director & Shareholder(copies):

- Voter ID Card

- Passport

- Driving License

2. Address Proof (Directors & Shareholder):

# Provide one of the following documents (not older than two months) for each director:

- Latest Bank Statement

- Electricity Bill

- Telephone Bill

- Mobile Bill

3. Registered Office Proof:

# Owned Property:

- Electricity Bill (not older than two months)

- Registry Proof (copy) OR House Tax Receipt (copy)

4. Rented Property:

# Electricity Bill (not older than two months)

# Notarized copy of the Rent Agreement

# No Objection Certificate (NOC) from the property owner (original)