Silver Package

All In Basic

Auditor appointment

Commencement of Business form.

Audit of your Company

₹23407

Government Fee on Actual

Golden Package

All In Basic

Auditor appointment

Commencement of Business form.

Audit of your Company

₹27487

Government Fee on Actual

Diamond Package

All in Basic

Auditor appointment

Commencement of Business form.

Audit of your Company

₹31338

Government Fee on Actual

Basic overview
Benefits
Registration Process
Documents
FAQ
Checklist
Eligibility

What is the Section 8 Company Register?

Section 8 of the 2013 Companies Act contains provisions to allow an individual or group of people to form a corporation as a nonprofit organization. To be recognized as a nonprofit entity, such companies must receive approval and a license from the Central Government. Section 8 companies' primary goal is to promote arts, commerce, education, sports science research, social welfare, religion, charity, environment conservation, and other objects prescribed by law. Promoting these objects requires that all income, donations, or grants received by a Section 8 company be used.

The most important decisions before the Section 8 registration of a company

  • What is your company's objective?
  • What number of owners is the company likely to have?
  • What is your company's authorized capital?
  • What will the company's name be?
  • Who will be its first directors?
  • What is the capital allocation ratio of the company?

The benefits of Section 8 Registration of Companies

Achieving the status of an NPO, or non-profit organization, does not mean the company can't earn an income or gain. It simply means that the company can reap benefits, but the promoters are not entitled to gain from them. Benefits cannot be distributed between promoters. All earnings must be used to advance the goals of the business. However, some benefits and exclusions have been made available for those who are an "NGO or an NPO" under Section 8 of the Companies Act 2013. Donors who contribute to creating a Section 8 Company are eligible to verify the tax exemption against these donations.

The benefits include:

Different Legal Identification

A Section 8 company is a distinct legal entity, and it is different from the members of it. The Company's legal standing is different from that of the individuals who make up it. The Company has a continuous presence, a more organized operation, and flexibility.

Zero stamp duty

An Section 8 Corporation is exempt from the requirement of paying stamp duty on the "MoA and AoA" of the public or private limited Company. This is pertinent for the registration of different types of company structures

The minimum requirement for capital still needs to be met

There is no minimum capital requirement. Has been set up as a Section 8 company in India. Additionally, the capital structure may be modified at any point in time according to the ever-changing requirements of the business. This means that the company could be created without shareholder capital. The money needed to carry out the business's operations could be sourced through donations or subscriptions from members and the general public.

Name

: A "Section 8 Company" is not required to include limited and private limited in its legal name. It can be named "Foundation, Association, Society, Council, Organization, Club, Charities, Academy, Institute, and Federation."

CARO

The requirements of the Companies Auditor's Report Order, also known as CARO, do not apply to this type of business

Tax Benefits

Numerous tax advantages are provided to Section 8 companies in India.

Credibility

Section 8 Companies are more reliable than other forms of charitable organizations. They are protected through the Companies Act and are managed cautiously. For instance, the requirement of an annual review and the "MOA and AOA" can't be changed at any point or in any situation.

Exemption for Donors

Donors to Section 8 Companies are eligible for tax breaks under sections "12A and 80G" of the Income Tax Act.

Membership

An enrolled partnership firm may become an individual member and gain a directorship.

Checklist for Section 8: Company Registration in India

Nonprofit companies have the option to be registered as private limited companies or public limited companies under Section 8 of the 2013 Companies Act. They can be established for specific purposes, and depending on the type chosen for registration, they will need to meet certain conditions. These conditions include minimum owners and directors, name, address, and capital. This comprehensive checklist outlines all of the requirements for incorporation as a Section 8 company.

Checklist to Register Section 8 Companies

Section 8: Company Registration

We simplified the procedure of incorporating a Section 8 company for entrepreneurs and startup founders. You can request a phone call from us to start the process of online registration for a Section 8 company. Our startup advisors will help you understand the details of Section 8 company incorporation. After being fully informed, you can place an order for Section 8. We have listed below the steps involved in Section 8 company formation.

Documents needed for Section 8 Registration of a Company

For registered offices

Section 8: Company Registration Eligibility Criteria

The eligibility requirements to be eligible for Section 8 company registration are as follows:

  • A person who is an individual, a limited company, or a HUF can start a Section 8 registration for a company within India.
  • Any person who will be a director or shareholder of the company must meet all requirements and comply with Section 8 company registration requirements.
  • At least one director must reside in India. A company may be a member of a company that is registered within this article.
  • The aim should be the promotion of sports and social welfare, as well as the advancement of arts and sciences, financial aid, and education for those with low incomes.
  • The surplus generated must be used for the main goal of the Section 8 corporation only.
  • The business's founders, members, and directors cannot receive compensation, cash, or any other kind.
  • Profits should not be distributed between directors and members of the company, directly or indirectly.
  • The business should have a clear vision and plan for the next three years.

Does Section 8 count as a small business company?

Section 2(85) provision (B) clarifies that a Section-8 business cannot be treated as a smaller business.

Do Section 8 companies pay tax?

The company's tax obligation in Section 8 is similar to that of other registered organizations (except non-profit organizations). Profits are subject to the tax slab rate of 30 percent. Profits earned by a section 8 company registered under section 12AA of the IT Act are deductible.

Directors' reports are required to be submitted for Section 8 companies.

The Companies Act 2013 mandates section 8 companies to prepare director reports and distribute the reports to those who have the authority to do so.

How can I transform my company into a Section 8 company?

Complete a RUN application to make a reservation for the name. In addition to the Form INC-12 application form to grant a license for a Section 8 company, apply for Form No. RD-1 to seek approval to convert the existing company to a Section 8 corporation.

What's the law regarding the name and registration of a company under Section 8?

A company registered under Section 8 may be either a private limited company or a private limited company. However, its name cannot include the words "Private Limited," "Public Limited," or "Private Limited," but must contain one of the following words:

A Section 8 company can raise capital via foreign direct investment (FDI).

Yes, Section 8 Companies are permitted to invest in foreign direct investment according to FEMA regulations. Foreign direct investment can only be paid after approval by the central government because it is considered a foreign contribution.

Can a Section 8 company invest or form a subsidiary to make a profit?

Yes. You can invest in any company that is not a profit-making company, provided there are no restrictions.

Can an unlimited company register as a Section 8 company?

Registering a Section 8 corporation as an unlimited company is impossible. It cannot be registered as a private limited company.

How can an LLP or partnership firm become a member of a company?

Yes, an LLP or partnership firm can become a member or shareholder of a Section 8 business.

A cooperative society can become a member of a Section 8 company.?

Yes. A cooperative society can become a Section 8 company member because it is considered to have the legal status of a "legal person" according to the Companies Act 2013.

Step 1: Documentation regarding Section 8 company registration

First, organize all documents necessary to facilitate Section 8 company incorporation. All documents required for the registration of Section 8 companies must be available. Inadequate documentation may result in the rejection of your registration request online. In the following section, you will find a list containing all the necessary documents to incorporate a Section 8 company.

Step 2: Select Company Name

The section 8 company name must be unique and communicate the organization's identity. It must comply with all legal requirements that determine the company's eligibility. A company's name cannot be identical to that of an existing company or LLP. The name cannot contain words or phrases that indicate government patronage or are deemed undesirable by the Central Government.

Step 3: Reserve Company Name

To reserve the company's names, you can apply to the Central Registration Center using the SPICe+ Part A or RUN (Reserve Unique Name) applications. The registrar will closely examine any proposed names to verify their eligibility and availability. If the registrar finds that any proposed names are valid and readily available, he will consider the company name.

Step 4: Section 8 company registration

The SPICe+ application form can be divided into two parts. The first section can be used to reserve the name of your company. The second section of the form has the application for Section 8 company registration and 10 other related services. The entire form may be completed and submitted online to the ROC. The form is signed by the Class 3 director, who has been authorized for the SPICe+ registration of Section 8 companies.

Step 5: Issue of Section 8 Company Registration

After verifying the authenticity and content of the company registration form, the ROC will register the section-8 company and issue a certificate to it. The registrar assigns the section 8 company a CIN to ensure it has a unique identity. After receiving both documents, incorporation as a Section 8 corporation is complete.

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