Section-8 Company (NPO) Registration

Register your Section-8 Company ₹ 15,000/- only (Inclusive of all fees)

 

Ideal for charitable purpose

 

For Non-Profit Organisation/NGO

 

Simple & Secure Online Process

 

Dedicated Professional

 

Get Registration in 5-7 Days

 

Get Post Incorporation Assistance

 

Introduction of Section-8 Company(Not for Profit Organisation)

Section 8 company is incorporated with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members. Section-8 Company can be incorporated as a Private or Public Company.

Section 8 Companies are similar to a Trust or Society as the Societies and Trusts are registered under the State Government regulations whereas Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”. Being recognized centrally Section-8 Companies/NPOs have higher credibility amongst the stakeholders and donors.

Legal Window can help you with the registration of Section-8 Company just by following certain steps and can provide you the deep understanding of this type of entity. You may get in touch with our team on 072407-51000 or email admin@legalwindow.in for Section-8(Foundation) company registration and Compliance services.

Advantages of Section-8 Company

Limited Liability 

The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for it and it is a legal entity which means it is different from its Members and Directors.

Benefits to Donors

People contributing under the Section -8 Company are offered tremendous tax benefits under Section 12A and Deduction under 80G of the Income Tax Act, 1961.


No minimum Capital Required

For incorporating a Section-8 Company no minimum capital is required and the capital structure may be altered in accordance with the growth requirements of the Company at later stage.

Tax Benefits

Many tax benefits and rebates are offered to the Section-8 Companies under the Income Tax Act, 1961.



Firms can also become Members

Another benefit of incorporating a Section -8 Company is that Firms can also become a part of it by subscribing the shares of the Company.

Less Procedural Compliances

Section- 8 Companies are not required to involve in much complicated compliances under the Companies Act, 2013 but are closely monitored under the Companies Act, 2013 .

Minimum Requirements

Minimum Two Directors and maximum Fifteen

Minimum two Members

Digital Signatures of Subscriber and Directors

No minimum capital requirement

Director Identification Number if available

Non-profit objective i.e. charitable object

Documents Required for Incorporation

PAN Card of the Member and Directors of the proposed Company
Passport in case of Foreign Nationals

Identity Proof of the Member and Directors of the proposed Company;
(Aadhar /Voter ID/Driving License/Passport)

Address Proof of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)

Latest passport size photograph of Member and Directors

Business Address Proof
Owned Property
: (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof
Rented/leased:
Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Note:-   In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or Apostilled.

Process of Incorporation of Section - 8 Company

1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.


2. Document Processing
At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.

3. Application for DSC
First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.

4. Name Availability
The next step is to check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.

5. E-filing for incorporation of a Company
Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from above the same is to be filed with ROC. The MOA as well as AOA shall be drafted with the cautious care thereby keeping in mind the main objective of Section-8 Company. This process again takes 2-3 days.

6. Get Certificate of Incorporation
Lastly, after the approval a Certificate of Incorporation and Section-8 License will be provided through e-mail which signifies that the Company has been incorporated.


More Insights on Section-8 Company Registration

How to Select the Name of Company

  • You  can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. The name of Section-8 Company should have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, and Federation. Our team will assist you in the selection of name of company.
  • Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Legal Window by clicking on the below mentioned link Trademark Registration.

Other Key Points

  • If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. if the same is not done yet it can be done with help of Legal Window.
  • Section-8 Companies can register themselves under Section 12AA in order to claim any tax exemption. Also under 80G, the donor will also be eligible to take exemption while filing his IT Return. The registration under 80G/12AA can be applied for after 3 years of incorporation.
  • Section -8 companies are prohibited for payment of any dividend to its Members
  • Section-8 Company is not allowed to raise capital through deposits except donations from general public. Foreign Donations are allowed after following the norms and regulations laid under FCRA. In order to take registration under FCRA the company must be 3 years old.

Comparison  between Trust, Societies and Section 8 Company

S. No. BasisSection-8TrustSociety
1.Governed byCompanies Act, 2013Indian Trust Act, 1882Societies Registration Act, 1860
2.Registration DocumentThe charter documents are MOA and Articles of AssociationThe main document is the Trust DeedThe Primary instrument for Registration of society its Memorandum of Society.
3.Minimum RequirementSection-8 Company requires at least two people.At least two trustees are required.At least seven members are required to form an society.
4.Revocable/IrrevocableIt can be dissolved in accordance with the provisions of the Companies Act, 2013 and rules made there underPublic Trust are generally irrevocableSociety can be dissolved which shall be approved by at least 3/4 of the Members of the society.
5.ControlIt is managed by the Board of Directors and resolutions are passed in accordance with the Companies Act, 2013Single man may control and prevail in a trust.Decisions are democratically taken in societies
6.Area of operationIt can operate all over IndiaIt can operate all over IndiaIt can operate in the specific state only.
7.Bank Account OperationsHere, a person can be authorized to operate a Bank Account.In trust it is controlled by one person mostly trusteeIn case of society Bank operations are operated generally by the President and the treasurer.
8.Annual ComplianceAnnual Accounts and return of Company are filed with ROC.There is no requirement of annual filing, but the data has to be provided to the concerned department as per prescribed formats.Societies are required to file annually with the Registrar of societies, a list of containing name. address and occupation of the managing committee members.
  Get StartedKnow MoreKnow More

Register your Section-8 Company 15,000/- only

2 Digital Signature Certificates

2 Director Identification Numbers

INC 20A Commencement of Business Certificate

Stamp duty on INR 1 Lakh Authorized Capital (Rajasthan)

Company Incorporation using SPICe+

Bank Account Open

MOA & AOA

PAN/TAN

GST Registration

ESI and PF Registration

1 Name Approval Application

Free consultancy by expert CA for 6 months

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FAQs on Section-8 Company

What are the major annual compliances of Section -8 Company?

The annual compliances that are required to be met by Section 8 Company are the same as other companies incorporated under the Companies Act, 2013 which are as follows:-

  • Conducting 2 Board Meetings, at least, in a year.
  • Mandatory audit of the Books of Accounts.
  • Annual returns, along with other e-filing forms such as MGT-7, AOC-4, etc.
  • Income tax returns.
  • Additional compliances that are required to fulfill is the registration u/s12AA, 80G, of the Income Tax Act, applicable to donations, etc.

 

In what time span the Section-8 Company can get the license?

The section-8 Company receives the License as soon as it is registered by the ROC in MCA and under the Registrars through e-mail.

Can a Foreign National or NRI can be become a director under Section-8 Company?

Yes, they can become a Director post obtaining the Director's Identification Number but one Director needs to be an Indian Citizen and resident.

Can a Section-8 Company accept donations from Foreign?

Yes, Section -8 Company can raise funds from foreign after complying with the guidelines as prescribed by FEMA and FCRA.

Can we close a Section-8 Company?

Section-8 Company cannot be closed under fast track exit mode. The company closure is a lengthy process and proper procedure of winding up has to be followed in order to close section-8 Company.

Can a Section-8 company make investment in other companies?

Yes. Section 8 Companies can invest in other companies in order to meet the objectives of its formation.

What do you mean by License under Section-8 Company?

License under Section- 8 defines that the Company is registered and incorporated with the object to promote charity and other social objectives thereby developing the cultural, health values etc.

What is the minimum time period in which the benefits of deduction 80G and Section 12 A can be availed?

The Benefits of deduction 80G and Section 12 A can be availed within a period of 3 years from the date of registration and with due compliances of the rules and regulations mentioned in the Act.

Can Section-8 Company declare dividends?

No Section-8 is prohibited from declaring dividends to its Members.

You need to open a Current Account in the name of LLP and deposit the amount of capital in the sharing ratio.

Yes, a Section-8 company can make investment in other companies subject to fulfillment of its objectives.

In how many days do we have to appoint an auditor?

The auditor has to be appointed within 30 days of incorporation of company by passing a board resolution.

Which is better for me Society, Trust or Section-8?

Societies, Trust and Section-8 are all forms of NGO formed with the objective of social welfare and charity. The selection of any one of them depends upon the preferences and requirements. The trusts are set up for the endowment of the property and the usage of the property for charitable purposes. Societies are set up with minimum 7 members and have a management committee for taking decisions by way of elections. Societies and trust are regulated by State Authorities and the scope of area of work is the state in which they are formed. Unlike, in Section-8 Companies the sole purpose is social welfare and can work on pan India basis and is centrally recognized by the Ministry.