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Section-8 Company (NPO) Registration

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Register your Section-8 Company ₹ 12,000/- only (Inclusive of all fees)

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Introduction of Section-8 Company(Not for Profit Organisation)

Section 8 company is incorporated with an object to promote commerce, art, science, sports, research, education, religion, protection of environment, charity or any other object, who intends to apply their income and profits in promoting their objects and prohibits the payment of dividend to its members. Section-8 Company can be incorporated as a Private or Public Company.

Section 8 Companies are similar to a Trust or Society as the Societies and Trusts are registered under the State Government regulations whereas Section 8 Company is registered under the Central Government’s “Ministry of Corporate Affairs (MCA)”. Being recognized centrally Section-8 Companies/NPOs have higher credibility amongst the stakeholders and donors.

Advantages
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Advantages of Section-8 Company

Limited Liability

The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for it and it is a legal entity which means it is different from its Members and Directors.

Benefits to Donors

People contributing under the Section -8 Company are offered tremendous tax benefits under Section 12A and Deduction under 80G of the Income Tax Act, 1961.

No minimum Capital Required

For incorporating a Section-8 Company no minimum capital is required and the capital structure may be altered in accordance.

Tax Benefits

Many tax benefits and rebates are offered to the Section-8 Companies under the Income Tax Act, 1961.

Firms can also become Members

Another benefit of incorporating a Section -8 Company is that Firms can also become a part of it by subscribing the shares of the Company.

Less Procedural Compliances

Section- 8 Companies are not required to involve in much complicated compliances under the Companies Act, 2013 but are closely monitored under the Companies Act, 2013 .
Minimum
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Minimum Requirements

Documents
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Documents Required for Incorporation

PAN Card

of the Member and Directors of the proposed Company Passport in case of Foreign Nationals

Identity Proof

of the Member and Directors of the proposed Company; (Aadhar /Voter ID/Driving License/Passport)

Address Proof

of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)

Latest

passport size photograph of Member and Directors

Business Address Proof Owned Property

(Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Business Address Proof Rented/leased

Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Process
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Process of Incorporation of Section - 8 Company

1. Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team.
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Step 01

2. Document Processing

At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
Step 02

3. Application for DSC

First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.
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Step 03

4. Name Availability

The next step is to check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.
Step 04

5. E-filing for incorporation of a Company

Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from above the same is to be filed with ROC. The MOA as well as AOA shall be drafted with the cautious care thereby keeping in mind the main objective of Section-8 Company. This process again takes 2-3 days.
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Step 05

6. Get Certificate of Incorporation

Lastly, after the approval a Certificate of Incorporation and Section-8 License will be provided through e-mail which signifies that the Company has been incorporated.
Step 06
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More Insights on Section-8 Company Registration

How to Select the Name of Company

  • You can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. The name of Section-8 Company should have words like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, and Federation. Our team will assist you in the selection of name of company.
  • Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Firm Registration by clicking on the below mentioned link Trademark Registration.

Other Key Points

  • If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. if the same is not done yet it can be done with help of Firm Registration.
  • Section-8 Companies can register themselves under Section 12AA in order to claim any tax exemption. Also under 80G, the donor will also be eligible to take exemption while filing his IT Return. The registration under 80G/12AA can be applied for after 3 years of incorporation.
  • Section -8 companies are prohibited for payment of any dividend to its Members
  • Section-8 Company is not allowed to raise capital through deposits except donations from general public. Foreign Donations are allowed after following the norms and regulations laid under FCRA. In order to take registration under FCRA the company must be 3 years old.
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Register your Section-8 Company ₹ 12,000/- only

Faq's
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FAQs on Section-8 Company

What are the major annual compliances of Section -8 Company?

The annual compliances that are required to be met by Section 8 Company are the same as other companies incorporated under the Companies Act, 2013 which are as follows:-

  • Conducting 2 Board Meetings, at least, in a year.
  • Mandatory audit of the Books of Accounts.
  • Annual returns, along with other e-filing forms such as MGT-7, AOC-4, etc.
  • Income tax returns.
  • Additional compliances that are required to fulfill is the registration u/s12AA, 80G, of the Income Tax Act, applicable to donations, etc.
In what time span the Section-8 Company can get the license?

The section-8 Company receives the License as soon as it is registered by the ROC in MCA and under the Registrars through e-mail.

Can a Foreign National or NRI can be become a director under Section-8 Company?

Yes, they can become a Director post obtaining the Director’s Identification Number but one Director needs to be an Indian Citizen and resident.

Can a Section-8 Company accept donations from Foreign?

Yes, Section -8 Company can raise funds from foreign after complying with the guidelines as prescribed by FEMA and FCRA.

What do you mean by License under Section-8 Company?

License under Section- 8 defines that the Company is registered and incorporated with the object to promote charity and other social objectives thereby developing the cultural, health values etc.

What is the minimum time period in which the benefits of deduction 80G and Section 12 A can be availed?

The Benefits of deduction 80G and Section 12 A can be availed within a period of 3 years from the date of registration and with due compliances of the rules and regulations mentioned in the Act.

Can Section-8 Company declare dividends?

No Section-8 is prohibited from declaring dividends to its Members.

You need to open a Current Account in the name of LLP and deposit the amount of capital in the sharing ratio.

Yes, a Section-8 company can make investment in other companies subject to fulfillment of its objectives.

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