Section 8 Company Registration

The section 8 company is that company which gets license under the section eight of the Companies Act, 2013. Under the Companies Act, 1986, previously it is called as Section 25 Company. Its main objective is to promote environment protection, charity, religion, social welfare, research, education, sports, science, arts and commerce. The Section 8 company does not pay dividends to its shareholders. Its income or profits is used for promoting the company objectives.

The Section 8 Company is not registered for the purpose of profit, but it is registered for the purpose of charity. This type of company is same as a society or trust. The only exception to this fact is that the “ministry of corporate affairs” will register a Section 8 Company. The societies and trusts are registered under the regulations of the state government.

Section 8 Company offers various advantages as against the societies and trusts. The most important feature of this type of company is that the company name can be incorporated without using the word “Private Limited” or “Limited”.

A non-profit organization in India can be created by registering a Trust or registering a Society under the Societies Registration Act or incorporating the section 8 company with an objective of not profit.

Documents Needed for Section 8 Company Registration

  • Two color photographs of shareholders/directors
  • PAN card of every director
  • Proof of identity of every director (Voter ID Card, Driving License, Passport, Aadhar Card)
  • Proof of Address (any utility bill, telephone bill, electricity bill, passbook or bank statement)
  • Registered address proof of company (any utility bill, tax paid receipt, electricity bill, sale deed)
  • No objection certificate (NOC) from the premises owner where the registered office of the company is located
  • Documents required to be attested by yourself and by a bank manager, post master or a Gazetted officer

What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Step by Step Procedure for Section 8 Company Registration

  1. 1

    DIN/DSC: The first step is to get the Director Identification Number (DIN) and a Digital Signature Certificate (DSC) of all the company directors.

  2. 2Approval of Name: The form no. – INC 1 is to be filed with central registration center of ministry of corporate affairs along with an application for the approval of name of the section 8 company. After approved from the authority, the name is valid for a duration of two months.

    The name of the section 8 company will include any of the given word like Electoral Trust, Council, Confederation, Chambers, Federation, Association, Forum, and Foundation as per the rule 8 (7) of the Companies (Incorporation) Rules, 2014.

  3. 3Memorandum of Association and Articles of Association: After the approval of name, memorandum of association and article of association will be drafted and filed with the RoC including the other documents in the E-Form INC 12 for the license issue under the section 8 of the companies act, 2013. The memorandum of association and articles of association subscription pages will be signed by every subscriber by mentioning their occupation, description, address and name in the presence of minimum one witness who can attested the signature and mentions his occupation, description, address and name etc.

  4. 4

    Form INC – 12: The applicant needs to file form INC-12 for license issue under the section eight of the companies act, 2013 including the following documents.

    • Pages of subscription of memorandum of association and articles of association and signed by the witness and the subscribers.
    • List of the company directors and promoters.
    • Statement of expenditure and income for the consecutive three years and it is signed by the promoters.
    • Declaration in the form INC – 15 by every subscriber to memorandum of association (duly notarized on non-judicial stamp paper of rupees hundred).
    • Article of association
    • INC – 13 Memorandum of Association

    After the form INC 12 approval, a license is issued in form INC – 16 under section eight of the companies act, 2013.

  5. 5

    Filing of forms of Incorporation on the website of Ministry of corporate affairs: After the issue of license, the following forms are needed to be filed with the RoC.

  6. 6

    Application for incorporation of the company (Form. No INC – 7) including the following documents.

    • Articles of association
    • Memorandum of association
    • Statement in form no. INC – 8
    • Affidavit from every subscriber to the memorandum of association in form number INC -9
    • Address proof of subscribers
    • Specimen signature in form number INC – 10
    • Identity proof of subscribers
    • No objection certificate if there is a modification in the promoters after the approval of name
    • PAN card
    • CTC of the resolution of board authorizing the memorandum of association subscription
  7. 7

    Notice of location of registered office (form number INC – 22) including the following documents:

    • NOC on the promoter letter head for premises use.
    • Bill of electricity
    • Rent Agreement/Conveyance/Lease Deed (Ownership Proof)
  8. 8

    Appointment of company directors (Form number DIR – 12) including the following documents:

    • INC – 9 statement by every subscriber to Memorandum of association (duly notarized on non-judicial stamp paper of rupees hundred)
    • Affidavit from the directors for not receiving the deposits (duly notarized on non-judicial stamp paper of rupees hundred)
    • Consent to work as directors (DIR – 2)
  9. 9

    Incorporation certificate: if the RoC is satisfied with the form of incorporation, an incorporation certificate is issued by the registrar of companies along with a distinct Company Identification Number (CIN).

Important Features of Section 8 Company:

  • Benefits of Tax: The section 8 company will get the benefits for income tax.
  • Welfare or Social Object: The main objective of the section 8 company is to promote environment protection, charity, religion, social welfare, research, education, sports, science, arts and commerce.
  • Unique Name: The name of the section 8 company shall be unique.
  • One Director resident: The director of the section 8 company must be the resident of India. A person is the resident of India when he stays in India for a minimum duration of one hundred and eighty-two days.
  • Minimum Capital: There is no minimum capital required for the formation of section 8 company.
  • Two Person: A minimum of two persons are required for becoming the director or shareholder of the company. The total number of shareholders can not be more than two hundred.

Benefits of Section 8 Company Registration

  • Exemption from the income tax: The income tax is levied on section 8 company at a rate of 30%. But if this company is registered under the section twelve of the income tax act, 1961, then its complete income is totally free from the taxes.
  • No requirement of minimum capital: There is no any requirement to subscribe or prescribe to a minimum paid-up capital for the section 8 company. It is for the welfare or the social cause. This type of company can be funded by subscriptions from the public or via donations.
  • No Need to pay stamp duty: On the incorporation of the section 8 company, there is no stamp duty payable.
  • Distinct legal entity: A section 8 company is a distinct legal entity.
    The section 8 company is more credible than a trust or society.
  • No title required: A section 8 company does not need to add “limited” or “private limited” at the end of its name.
  • Eligibility for the Registration of Section 8 Company

    • The aim of the section 8 company is to promote the commerce, arts and science or charity.
    • It utilizes all of its income in promoting its objectives.
    • Payment of dividend is not required to the members in section 8 company.

Frequently Asked Questions

Yes, minimum two directors are required for section 8 company registration.
No. The entire procedure of section 8 company registration is performed online.
No, there is no any other payment to be made for incorporation certificate apart from the fee paid at the time of registration.
Yes, it is necessary to have a charitable object to register a section 8 company.
There is no any predefined life span for the section 8 company, and it can work for a longer time period.

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