Section 8 Company2019-04-06T13:18:30+05:30
Private Limited Company

Section 8 Company Registration
Starting at INR 24,999 onwards



Section-8 Company

Section 8 Company is a form of Company recognized under the Section 8 of Companies Act, 2013 that dedicates their incomes and profits towards the furtherance of the company’s non-profit objectives and philanthropic causes. The Companies Act defines a Section 8 company as one whose objectives is to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives. Section 8 do not pay dividend to its members. Some examples of Section 8 Company Registrations are Federation of Indian Chambers of Commerce and Industry (FICCI) and Confederation of Indian Industries (CII). Section 8 Companies can get benefited under the Income Tax Act Sections 12(A )and 80(G).

Why Section 8 Company Registration?

Separate Legal Entity

A Section-8 Company is a separate legal entity as distinct from its members, and is separate at law from its shareholders,directors, promoters etc. A Section-8 Company have the capacity to own properties, incur debts and exercise a number of legal rights.

Perpetual Succession

Section-8 Company exercise “Perpetual Succession”; which means that a company’s life is not determined by the longevity of its members, directors, employees or anyone else. A Section-8 Company will still continue to function irrespective of its members resignation or death.

Limited Liability

Limited Liability protects the personal assets of founders and members of the company in case of debt or insolvency. Unlike unregistered forms of business, in a Section-8 Company, the liability of the members in respect of the company’s debts is limited only till their investment of capital in the company and not their personal assets.

No Minimum Capital Required

There is no Minimum requirement of capital required to start a Section-8 Company.  However, it is suggested to register with a minimum capital of INR 1 Lakh in order to avoid multiple capital increase.

Tax and Compliances Exemptions

A Section-8 Company can avail tax benefits under the Income Tax Act Section 80(G) and 12(A).  They are also exempted from carrying out a number of several procedural Compliances, making it easier for the founders to focus on the operations than handling end number of compliances.

Credibility

A Section 8 Company has more credibility than compared to Non Government Organisations, societies, and trusts as they are recognized by the Ministry Of Corporate Affairs and have a Section 8 License.

Minimum Requirements for Section-8 Company Registration

TWO DIRECTORS

For a Section 8 Company Registration a company must have at least two directors and a minimum of one director should be an Indian. The maximum number of directors a Section 8 Company can register with is 15.

REGISTERED OFFICE

The registered office of the company does not have to be a commercial space. Even a rented space/ house can be the registered office, so long as an NoC is obtained from the owner of the property.

MINIMUM CAPITAL

There is no minimum Capital Requirement for a Section 8 Company Registration. However, it is suggested to register with a minimum capital of INR 1 Lakh in order to avoid multiple capital increase.

Documents Needed For Registration

llp photo

Passport Sized Photo
Passport sized Photos For All Directors

ID Proof

Identity proof
Driving License/Voter ID Card/Passport

Address Proof

Address Proof
Latest Bank Statement/Utility Bill

Information

Director Information
KYC Details Of Directors

Document

Company Address Proof
Latest Bank Statement/Utility Bill

Certificate

No Objection Certificate 

NOC From Owner

Certificate

Rental Agreement
Rental Agreement from Director

Proof

Property Documents
If Property Owned by any Directors

Deliverables

Certificate

Certificate Of Incorporation

A Certificate of Incorporation is a legal document issued by the Ministry of Corporate Affairs and Government of India after the Company Registration. It serves as the proof of legal existence of the Section 8 Company.

Identification Number

Directors Identification Number

DIN is a unique Director Identification Number allotted by the Central Government to any individual intending to become a Director a company.It is an 8-digit unique identification number which has validity for lifetime.

Digital Signature

Digital Signature

A Digital Signature (DSC) is an equivalent of a handwritten signature or stamped seal, but is way more secured and safe to use. You would receive a class 2 Digital Signature for all the Directors of the Company with a validity of 2 Years.

Business Registration Documents

MOA/AOA

Memorandum of Association consists of the objectives of the organization. Articles of Association are reports that contains the purpose, obligations and responsibilities of its owners, directors, promoters or shareholders.

Business Registration Documents

Company PAN & TAN

Registered businesses like Section 8 Company needs to obtain a PAN Card & TAN  in the name of the registered business. The PAN & TAN number needs to be quoted in every financial transaction of the business.

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Business Registration Documents

Section 8 License

A License under Section 8 of the Companies Act 2013 will be obtained for the registered company, the Section 8 License number would be required to be quoted in all the Company related documents and signage’s.

How long will it take?

Registration

Acquire Digital Signatures

One Day

Documentation

Applying Company Name

Two Days

Documentation

Applying Section 8 License

Five – Ten Days

Documentation

Drafting eMOA & eAOA

Two – Three Days

Ok

Filing for Incorporation INC32

One Day

Secion 8 Company vs. Society vs. Trust

Features

Price Starting At
  • Registration Law
  • PAN India Operations
  • Members/Owners Liability Clause
  • Directors
  • Tax Exemption
  • Transfer-ability
  • Statutory Audit
  • Annual ROC Filings

Section 8 Company

INR24,999+GST
  • Companies Act, 2013
  • Allowed
  • Limited Liability
  • Minimum 2 Directors
  • Higher Chances
  • Ownership can be transferred.
  • Yes
  • Mandatory

Society

INR5,310+GST
  • State Society Act
  • Not Allowed
  • Limited Liability
  • Minimum 2 Trustees
  • Medium Chances
  • Ownership can be transferred.
  • No
  • Not Applicable

Trust

INR5,310+GST
  • State Trust Act
  • Not Allowed
  • Limited Liability
  • Minimum 7 Members
  • Medium Chances
  • Ownership can be transferred.
  • No
  • Not Applicable

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Frequently asked Questions

A Section 8 company can be started with a minimum capital of one lakh.

A Section 8 can be started with a minimum of two members and can have up to two hundred members at maximum.

SPICe form is a new consolidated form introduced by MCA simplifying the incorporation and taking the process to fast track mode incorporating a company in less then 10 days if approved on time.

Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company.

Registrars of Companies of respective jurisdictions are delegated with the powers of Central government to issue license to Section 8 Companies.

No, a Company with unlimited liabilities cannot be registered as a Section 8 Company.

Yes, it is mandatory that the name of section 8 Company shall include the words like – Foundation, forum, association, federation, chamber, confederation, council, electoral trust etc.

No. Rule 3 of the Companies (Incorporation) Rules, 2014 prohibits a one person company to be incorporated as section 8 company or to convert into a Section 8 Company.

No, Rule 3(6) of the Companies (Incorporation) Rules, 2014 prohibits one person company to invest in securities of any body corporate.

Yes, under the Companies Act, 2013, a Partnership firm or an LLP can become the member of Section 8 Company

Following documents relating to Director:

  • Passport sized photo
  • PAN Card
  • ID proof- Anyone (Voter ID/Aadhar Card/Driving License/Passport)
  • Address Proof- Anyone(Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement)

For are the documents regarding Registered Office Address

  • In case of Rented Building: Rent agreement along with latest rent receipt with NOC from owner
  • In case Leased Building: Lease deed with NOC from owner
  • In case Owned: House tax receipts
  • Electricity bill

A typical incorporation would take around 25-45 days depending on the requirements & circumstances of the case.

No you dont need to deposit your capital while registration.

Yes, there is no specific prohibition on such appointment as director.

There are special requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 before a Section 8 Company can receive any contributions or donations from overseas/outside India from non-residents.

Yes, section 8 company can promote another company and be a holding company of another company

No, a Section 8 Company cannot be converted into any other company.

Yes, subject to compliance of applicable RBI Act, Guidelines and directions, Section 8 Companies can carry out micro finance activities.

There is no restriction on borrowing by Section 8 Company. However, provisions of section 180, if applicable, required to be complied with.

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