Section 8 Company Registration
It is commonly used by NGO, Charitable Trusts and activists with no profit motive.
Register Non Profit Section 8 Company at best prices guaranteed
(Package start at Rs. 33,999/- all inclusive govt. fees and taxes)*
Package is inclusive of
- DIN No. for Directors
We will secure DIN no. for Three Directors with Digital Signatures (DSC)
- Name Search and Approval
We will secure DIN no. for proposed Directors with Digital Signatures (DSC)
- Name Search and Approval
Help you pick the right name of Company and register with MCA
- MOA and AOA
We will draft legally vetted MOA and AOA Constitution agreement
- License and Company Registration
Finally, we will obtain license for the Company and it gets incorporated and we shall secure the registration Certificate
- Company PAN
We will obtain PAN for the Company with every incorporation.
* Prices vary for certain states and subject to authorised capital of company due to varied govt. fees
What is Section 8 Company?
The Income of Section 8 Company must be utilized for promoting charitable and social welfare objects as prescribed and no dividend can be paid to its members.
It is an entity primarily operate as Non Profit organisation or Trusts for enrichment of its objective. They are the company registered for Charitable purpose or not for profit purpose under Companies Act with MCA.
From regulatory perspective, Section 8 Companies operates exactly like any other Limited Company and carries similar feature of a Company. Only limiting factor for these companies are they cannot use words such as “Section 8 Company “or “Limited” in its names.
Trusts and Societies are un-organised form of business structure which gets registered under State laws, while Section 8 Company provides an upper edge with Corporate identity and regulated governance with MCA.
Central govt. may prescribe certain conditions and framework which needs to be adhered by such company. In case, where operations of the company are found to be fraudulent or deviated from its charitable or social objective, Central govt. may take suitable steps for cancellation of registration with stringent penalty prosecutions against directors and company.
Company structure provides several benefits to NGOs like better corporate image, legal standing, ease in fund raising from sponsors/ donors, better governance and reporting framework compared to Trusts providing improved credibility to such companies.
India Kickstart team with their professional expertise have helped in incorporating Section 8 Companies, NGO, Trusts and Societies and manage your business with professional handholding and beyond expectation customer service. We have customized choices of startup friendly packages available to suit every unique requirement.
Important Criteria to be adhered for Section 8 Company :
Section 8 Companies can be formed only for specified objects of charity or not for profit motive and activities of companies must be to promote art, science, charity, social welfare, environment, research, education etc. Thus if you have a business objective of earning profits and paying dividends, one cannot form section 8 company.
It is mandatory that Section 8 Company should utilize all their Profit/ surplus incomes only for promoting the objectives for which it’s been formed.
Section 8 Company is prohibited from making any payment of dividends to its members. This ensures rightful use of surplus only for the social or charitable purpose aligned to organisation objective.
These companies are tightly governed by Central Govt. with host of relaxations in compliance conditions and tax incentives. However, if it was found that company has deviated their activity from not for profit motive to any other object or has not followed mandatory guidelines and conditions prescribed for section 8 company, then Central govt. may take suitable action or invoke stringent penal provisions which may also extend till winding up of the Company.
Section 8 companies cannot alter the provisions of their MOA and AOA. They need to obtain prior approval from Central govt. to effect the alteration.
How can we help with Section 8 Company Registration
We can get your Company registered with complete professional support in estimated 20-30 working days* with following Steps:-
Digital Signatures Certificate (DSC) and Director Identification No. (DIN) will be obtained for the proposed Directors of Company which takes about 5 to 7 working days time.
On obtaining DIN and DSC for atleast two directors, application for Name of approval of company will be made to MCA. As per availability and guidelines, MCA approves name of Company which will be reserved and aligned to their guidelines. Once name is approved, License must be obtained prior to incorporation. We will secure your name reservation in 7 working days time.
On name approval, license must be obtained prior to filing of incorporation. On receipt of license, Our team will draft legally vetted Memorandum of Association and Articles Of Association (Constitution document) and submit with MCA along with application for Incorporation and necessary supportings. MCA usually approves incorporation application in about 10-15 working days, subject to govt. processing time. On approval, Final Registration Certificate for Company will be issued.
We will make application for obtaining Permanent Account Number (PAN) for Company with Income Tax Department ourselves, but you will need to courier hard copies of the required documents yourself. The PAN will be couriered to your registered office address in maximum 21 working days.
On receipt of PAN, License and Company Registration Certificate, you can open Current Account with any Bank for your Company and begin transacting business.
* Subject to govt. processing time and client documentation time.
Advantage of Section 8 Private Limited Company:
In charitable ventures, its highly beneficial to follow Company structure, which restricts liability of its members and directors. Hence, Members and directors personal assets are safeguarded and cannot be pulled over to pay the obligations of the company and ensures Limited liability feature for stakeholders.
Section 8 Company is a legal entity and an artificial person in the eyes of the law, distinct from its Owners. Therefore Company has wide legal capacity and can enter into contracts, own assets, borrow funds and also can sue or be sued in its own name.
Company has perpetual succession and will continue to exist until legally dissolved, irrespective of death or changes in their members. This provides ongoing legal existence to Company over other forms of business and ensures continuity.
Shareholders are the owners of the company. In Company structure, one can easily transfer ownership of Company by share-transfer with amendment in shareholder, directors and nominees. Easy transferability feature makes Company structure more flexible business model to choose among startups.
A company structure is more credible for better avenues of fund raising. With clear objective, it is easier to raise donations, loans, sponsorships for promoting its objects. Even banking and financial institutions prefer to render large financial assistance to a company rather than partnership firms or proprietary concerns.
There are multiple relaxations and exemptions granted to Section 8 Companies under Companies Act. Like these companies need not have share capital, Stamp duty is not payable by such companies on registration, Name of such companies need not have wordings as “Section 8” or “Limited” titles. Further, relaxation granted to them with lesser compliances required compared to general private limited company. If these companies have also obtained 80G / 12AA exemption certificates from Income Tax Act, then donations made to them are tax deductible for donors.
Documents required for Company Registration
To be submitted by Directors and Shareholders
Copy of PAN Card
Copy of Aadhaar Card/ Voter identity card / Driving License
Directors details (if members are other companies or LLP)
Copy of Passport (in case of NRI or Foreign National)
Copy of Latest Bank Statement/Telephone or Electricity Bill
Passport size photograph Scanned Copy
Specimen Signatures (signature on blank document of Directors only)
# For NRI/Foreign Nationals, All the documents must be notorised or apostilled (if in common-wealth country). In case of Resident director, all documents must be self-attested by any one director.
To be submitted for Registered Office (Place of Business)
Scanned Copy of Notorised Rent agreement (If rented property)
Scanned Copy of Landlord NOC (Format will be provided)
Latest Electricity/ Maintenance bill/ Utility Bill/ Latest Bank Statement (Place of Business)
Scanned Copy of Property papers (If owned property)
Why India Kickstart?
About India Kickstart
Just tell us a little bit about your business and you’ll have the incorporation certificate in 20 working days. It’s that simple. In addition to yours, we’ll be handling around 400 requests this month.
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.