WHAT IS SECTION 8 COMPANY REGISTRATION?

An organization registered as a Section 8 Company under the Companies Act, 2013 as a Non-Profit Organization (NO) with an objective of promoting the fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. In India, a NPO can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013. These companies are granted an exclusive license under Section 8 Companies Act by the Government. The three main conditions for granting the license are:
-The company should form for the charitable purpose.
-Income and profits, if there are any, should be used towards these objects.
-The company should not pay any dividend to its members.

Eligibility Criteria

An Individual or HUF or limited Company is eligible to start a Section- 8 company registration
Not for profit business objective as prescribed under Section 8 of Companies Act
Two or more shareholders, if the company is registered as Private Limited
Seven or more shareholders, if the company is registered as Public Limited
Two or more directors, if the company is registered as Private Limited
Three or more directors if the company is registered as Public Limited
At least one resident director
A unique and valid company name
A registered address of the company
Invest some amount of capital

SECTION 8 COMPANY REGISTRATION PROCESS IN INDIA

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STEP 1 : Apply for DSC

Prepare a DSC of the proposed Directors of the Section 8 Company. Applying for a Digital Signature Certificate (DSC) is a first and foremost step which has to be done as soon as possible.

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STEP 2 : File Form DIR-3 for DIN

Soon after receiving a DSC, applicants have to file Form DIR-3 with the ROC to get a DIN. The Proof of Identity and Address Proof has to be attached for obtaining DSC. Once the DIR-3 is approved, the ROC will allot a DIN to the proposed directors.

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STEP 3: File Name for approval

Submit an application to the Central Registration Center using either the RUN (Reserve Unique name) or PART A of the SPICe+ application to reserve the company’s name. The Registrar will examine the proposed name closely for its eligibility and availability. Initially, a maximum of 2 names has to be proposed in Form INC-1. If rejected 1 resubmission is allowed. Both times in separate formats.

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STEP 4 : Apply for License & COI

After the name approval, the applicant has to apply for the Section 8 License with the Govt of India. Form INC-12 with the ROC needs to be filed to apply for a licence for the Section 8 company along with the attachment of the required documents. Once the form is approved, a license under section 8 will be issued in Form INC-16.

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STEP 5 : Filing of SPICe+ form

After obtaining the license, file the SPICe+ Form with the ROC for incorporation along with the required attachments. The SPICe+ form is divided into two parts - 1st part is used to reserve the name of your company and the 2nd part of the form contains the application for section 8 company registration along with 10 other related services.

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STEP 6 : Issuance of Certificate

As soon as all the processes have been completed, ROC will register the section 8 company and provide it a certificate of incorporation as a conclusive proof of its registration. The Registrar will also assign a CIN number to the section 8 company.

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STEP 7 : Apply for PAN, TAN

After successful registration, individuals need to apply for PAN and TAN via Forms INC-7, 8, 10, 9, 22, DIR-2, and 12 with the ROC, along with the required documents.

Section 8 Company Registration Fee in India

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DSC & DIN – Rs 3000
Company Name Reservation – Rs 1000
MoA& AoA & Government Fees & Incorporation fees - Rs 6000-8000*
Notary and Stamps – Rs 2000
Professional Fees- Rs 8000-10000

Forms Required to Apply for a Section 8 company

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Form No Objectives INC-1 To submit with ROC for Name Approval.
INC-7 To apply for Incorporating the Company
INC-8 Declaration to Apply for PAN & TAN
INC-9 Affidavit from each Director and subscriber of the MoA
INC-12 Application for the issuance of License to operate as a Section 8 Company.
INC-13 Memorandum of Association (MoA)
INC-14 Declaration from a practicing Chartered Accountant or Company Secretary
INC-15 Declaration by each Subscriber of MOA (On duly notarized Non- judicial stamp paper of Rs. 100/-)
INC-16 License to operate as Company under Section 8 of the Companies Act, 2013
INC-22 Notice of Location of the registered office
DIR-2 Consent of Directors to act on behalf of the Company
DIR-3 Application to ROC to get DIN
DIR-12 Appointment of Directors of the Company

Benefits

1. Distinct Legal Identity
It is a separate legal entity and is different from its members. The Company has perpetual existence, along with having organized operations and greater flexibility.
Avoids meticulous registration process and no physical presence required.
It is exempted from the requirement of paying stamp duty on the MoA and AoA of the private or public limited company. .
No requirement of a minimum paid-up capital has been mentioned for a Section 8 Company.
To suffix “Public Limited or Private Limited”, next to its legal name is not required for a Section 8 Company. NPO can be registered with names such as “Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organisation, and Federation”.
Companies Auditor’s Report Order or CARO is not required.
For Section 8 Companies in India, seamless procurement of tax benefits under section 12AA and 80G of the Income Tax Act benefits are granted.
This type of companies are more reliable than all other forms of charitable organizations are they are governed by the Companies Act and are regulated strictly.
Those who donate to a Section 8 Company are eligible for tax exemptions.
Seamless procurement of tax benefits under section 12AA and 80G of the Income Tax Act.

Get a free consultation for Private Limited Company registration by scheduling an appointment with Finlawcity.

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WHY CHOOSE US

1. STARTUP’S FIRST CHOICE
We ensure startups to focus on their project and leave all the legalities and documentations to us. From our technology driven platform and on time delivery startups prefer us to do Company registration.
100% Technology driven platform to speed up your company registration process and make your life easy
We understand the value of money for startups. We offer complete transparency and affordable cost to startups.
Fully online service so that you can start and complete the process without running around from the comfort of your home or office.
At Finlawcity, we work only with experienced Chartered Accountants & Company Secretaries to handle your company registration.

Requirements

Services

MINIMUM TWO / THREE DIRECTORS

Services

MINIMUM TWO / SEVEN SHAREHOLDERS

Services

CHARITABLE OBJECTS

Services

ADDRESS PROOF FOR REGISTERED OFFICE

Documents Required

Pan Card

Pan Card

PAN Card of the Directors and Shareholders

Photograph

Photograph

Latest Passport size photograph of Shareholders & Directors

Address Proof

Address Proof

Latest Telephone Bill / Electricity Bill / Bank Account Statement of Shareholders and Directors.

Identity Proof

Identity Proof

Aadhar Card / Voter ID / Passport / Driving License of Shareholders & Directors.

For Registered Office

For Registered Office

Rent agreement Utility bills-telephone, electricity, and municipal (Not older than 2 Months) NOC From Owner.

Frequently Asked Questions

What is a Private Limited Company?
Private Limited Company is the most sought form of Company Registration in India. It is the most preferred form of business and regulated by Ministry of Corporate Affairs (MCA) under Companies Act, 2013. A Private Limited Company is a type of business structure registered with MCA to give a separate legal existence to the business different from its directors and shareholders. This means that a company continues to exist even after the death of any member/director in the company.
A minimum of two persons are required to form a Private Limited Company. It is not even important that members should be different from directors. In a company, two persons can act as Members and Directors both at the same time. Members and Shareholders are one in the same. That means an individual may become shareholder and director at the same time.
There is no minimum capital requirement to form a Private Limited Company Registration. Start-ups may choose on their own how much paid-up capital they want to keep during the Company Registration. However, generally one lac capital is kept as per most companies registered.
Name reservation is quite simple and easy to obtain. Our professionals will guide and help you in choosing the best suitable name of your company according to name guidelines of company incorporation and trademark laws.
Director Identification Number (DIN) is a unique number assigned by the MCA to Individuals allowing them to become Director in any Company or Designated Partner in an LLP (In LLP, it is called DPIN). Any natural person above the age of 18 years can become the director in the company after getting DIN. There are no specific regulations provided in terms of citizenship or residency, also a foreign national can become a director.
Digital Signature Certificates (DSC) are the digital equivalent (electronic format) of physical or paper-based certificates. Likewise, a digital certificate can be presented electronically to prove one's identity, to access information or services on the Internet or to sign certain documents digitally. SPICE+ forms are filed for online company registration after affixing the DSC. The subscribers to MOA & AOA shall possess DSC for submitting e-forms for incorporation.
Memorandum of Association (MOA) is a legal document prepared during the registration process of a company to define its relationship with shareholders and contains the main objectives of the company. Articles of Association (AOA) are by-laws of the company and it regulates management of a company and creates certain rights and obligations between the members and the company.
Yes, Startups get benefits of getting themselves registered as a Start-up under DPIIT and avail many benefits launched by the Govt. Corporates recognize Private Limited Company very well and the foremost advantage is of credibility and good reputation of the established business in the eyes of Investors, Incubation Centres, Financial Institutions and Customers at large.
Post incorporation compliances are easy and manageable. Companies Act, 2013 provides a lot of exemptions to private Companies due to which compliances becomes easy and handy. At CCL, Professionals are there to manage each and every compliance of your company. Get in touch with us to know the post incorporation compliance especially commencement of business.
No, With Compliance Calendar LLP, no compliance is complicated. Our team is here to manage each and every thing when it is about managing company compliances.
We are the market experts in registration and compliance of Companies. We can help you with end-to-end services in Private Limited Registration anywhere in India. Company Registration is a legal process and therefore it is prudent to assign the work to a professionally managed firm like CCL.
Not to worry at all! A Professional from our experienced team will resolve all your queries. Our Company Registration Experts will give you the best advice without any consultancy fees.