Have Queries? Talk to CCL Experts

SMS VOICE

No Spam. No Sharing. 100% Confidentiality

Section 8 Company Registration

Let Compliance Calendar LLP help you register a Section 8 Company! (Registered with the Ministry of Corporate Affairs, Government of India)

To run an NGO in India, a non-profit organisation can be registered under any of the three options as given below:

Trust Registration by executing a Trust deed or
Society Registration under the Registrar of Societies, or
Section 8 Company under the Companies Act, 2013.

There is no difference between a Section 8 Company and Section 25 Company. Under the new Companies Act 2013, Section 25 Company (as per the old Act) has now become Section 8 Company due to change in Companies Act from 1956 to 2013.

Well; you can register an NGO/NPO as Section 8 Company in the fields of promotion of arts, commerce, charity, education, protection of environment, science, social welfare, sports, research and religion with the support of our experienced Compliance Managers at Compliance Calendar LLP.

To assist you in procedure, Get in touch with us

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 Company has become the most preferred form of Non-Profit Organization (NPO) or Non-Governmental organizations (NGO) in India due to its easy registration process, online secured data with www.mca.gov.in and many Features & Benefits because it functions exactly like a limited company (including all the rights and obligations that come with such a company). It has the authority to work anywhere in India.

Section 8 Company works as the Non-Profit Organizations. When we say not for profit, it does not mean that Section 8 Company cannot earn profits. In fact, such NGO/NPO can generate profits but the income of the Section 8 Company must be used to promote only charitable objects and it cannot pay any dividend to the members of the company.

This company is similar to trust and society, an exception to this is that Trust and Societies get registered under State Govt. Regulation whereas a Section 8 Company is registered online under aegis of Ministry of Corporate Affairs, Government of India.

Documents Required of Section 8 Company Registration

Achieve all your goals and aspirations; with the right kind of help, exactly when you need it.

Photograph of all the Directors
PAN Card of all the Directors
ID Proof of all the Directors (Driving License/Passport/Voter ID)
Residence Proof (Bank Statement/Mobile Bill/Telephone Bill/Utility Bill)
Electricity Bill or any other utility bill for the address proof of the Registered Office (along with Rent Agreement and NOC on case to case basis)
We draft registration documents and send the same to you for signing.

Legal Procedures of Section 8 Company Registration

Incorporation of a Section 8 Company is completely a legal work and it requires knowledge of Company Law and in-hand experience of clearing all the objections raised by the Central Registration Center (CRC)-MCA to register a Section 8 Company.

Below are the stages to register a Section 8 Company:

Application of Digital Signature Certificate (DSC);
Obtaining the Director Identification Number (DIN);
Reservation of name of the Section 8 Company;
Drafting of Memorandum of Association (MOA);
Drafting of Articles of Association (AOA); and
Receiving Certificate of Incorporation (COI).

Since registration of Section 8 Company is completely a legal procedure, we at Compliance Calendar LLP can help you to register your NGO if you are struggling to get proper guidance with regard to Section 8 Company legal registration process. Most of the service providers working out these days are non-professional firms. Their success rate is very low as their application for section 8 license gets too many objections and resubmissions and most of the time, it finally gets rejected.

On the other hand, the CCL is having a dedicated team of Company Secretaries who are considered domain experts in Section 8 Company Incorporation and eager to help you throughout the section 8 company registration process making it simple for you.

We also provide free consultancy to you for one year helping you out with its post-incorporation compliance with our Compliance Calendar Tools and Mechanisms.

You can Get in touch with our Compliance Manager to understand Section 8 Company annual compliance requirements including guidance with regard to their functioning and day-to-day operation, be it maintaining accounts, meeting legal compliance or making sure all the mandatory requirements of the law are fulfilled to save you from the severe fines, penalties and imprisonment due to non-compliance.

Get in touch with us now to give you a Quotation and Proposal.

Send us your queries at info@ccoffice.in or WhatsApp/Call us at +91 99 88 42 42 11.

Features & Benefits of Section 8 Company Registration

Tax benefits

Section 8 Company being a non-profit organization, they leverage the exemption from the provision of income tax under section 12A and the donors also get tax deductions under section 80G of the Income Tax Act, 1961 respectively.

Zero Stamp Duty

A Section 8 company do not have to pay stamp duty on the AOA and MOA on its incorporation, which is compulsorily applicable on other forms of companies.

The ease at transferring ownership/title

The limited liability companies do not have the advantage to transfer their title or ownership, but the Income tax Act, 1961 does not confide Section 8 companies to transfer their ownership or title thereby, enabling the transfer of both movable and immovable interest without any hurdles or restrictions.

Exempted from “Limited” name

In contrast to other limited companies who are under obligation to use their company’s name as ‘limited company’, section 8 companies get exemption from the use of any such title. They use the word like Foundation, Association, Chamber, Confederation etc.

Separate legal entity

Section 8 company has a distinct legal entity which means the company’s existence is different from its members. The company has a perpetual existence along with greater flexibility.

Uniform Registration

Section 8 Company gets nationwide uniform registration unlike the other forms of NGOs, like Trust and Society. Further, their names are secured under CRC-MCA.

CARO Not Applicable

Requirements of Companies Auditor’s Report Order or CARO do not apply to Section 8 Company.

Credibility in the eyes of public

Section 8 Companies are more reliable than Trust and Societies. They are regulated like any other limited company strictly and have to follow the rules and regulations under Companies Act, 2013. This gives a trust and credibility in the eyes of public at large.

Frequently Asked Questions

What is Section 8 Company?

A non-profit organization in India can be registered as a Section 8 Company under the Companies Act, 2013 other than the two existing options to go for either registering a Trust or as a Society under the Registrar of Societies.

How many persons are required to register Section 8 Company?

A minimum of two persons are required to register Section 8 Company in India.

Is it possible to form Section 8 Company with two persons of the same family?

Yes. Unlike Societies, a Section 8 Company can be incorporated with the blood relations or even if they happen to be relatives.

What are the objects for which Section 8 Company can be registered?

Section 8 Company can be incorporated to promote commerce, art, science, research, sports, social welfare, education, charity, religion, and protection of the environment or any such object and for Corporate Social Responsibilities (CSR) by companies under section 135 of the Companies Act, 2013.

What is the minimum capital required for Section 8 Company?

The minimum capital of INR 1 Lac has been done away. Now, Section 8 Companies can be incorporated with any amount. However, we recommend 1 Lac capital to start with and later on the same can be increased anytime in future.

What are the documents required to register a Section 8 Company?

Basic KYC of Directors, Registered office address proof and some documents to sign that we will prepare before submission to the Central Registration Center (CRC)-MCA.

How much time it takes to register a Section 8 Company?

The normal processing time to register a Section 8 Company is somewhere between 15 days to 20 days. This time limit may vary subject to your co-operation of submission of documents to us as well as Ministry’s approval

Do we need to visit your office or any department to register the Section 8 Company?

No. There is no requirement to visit our office (though we welcome you if you wish to) or any department by you in person. Our Compliance Manger will be there to assist you in the complete procedure of Section 8 Company Incorporation. All the documents are filed to the Central Registration Center (CRC)-MCA in the scanned copies.

Do we need to get GST Registration also for Section 8 Company?

It depends on case to case basis. If Section 8 Company comes under the purview of the GST Act, it must get registered with GST.

Are deposits allowed in Section 8 Company?

Section 8 Company cannot accept deposits and strictly prohibited under the Companies Act, 2013. However, they can accept donations from the general public.

Can Section 8 Company accept foreign donations?

A Section 8 Company is allowed receive foreign donations only when FCRA (Foreign Contribution Regulation Act 1976) registration has been obtained from Ministry of Home Affairs. FCRA license is normally applied when the Section 8 Company is minimum 3 years older (in exceptional cases can be allowed-T&C.)

Can NRIs or Foreign National be a Director in a Section 8 Company?

Yes, an NRI or Foreign National can be a Director in a Section 8 Company with a valid Director Identification Number (DIN). However, at least one resident director has to be there on the Board of Section 8 Company.

What are the main benefits of Section 8 Company?

There are many benefits. To name a few are: Easy registration process with to no requirement to visit any Departments, no minimum capital required, you can get the NGO going after you receive the donations, no stamp duty on MOA & AOA, making any change is hassle free since it is online unlike Trust and Societies, Income Tax deductions benefits u/s 80G to the donors and Income Tax exemptions u/s 12AA for the Section 8 Company and many more.

Why to get Section 8 Company registered with Compliance Calendar LLP?

The CCL has been providing quality and transparent professional services. The moment we take the assignment, we get on the work. You get real-time update on the status of your Section 8 Company registration process and our dedicated Compliance Manager will be there with you round the clock to assist you.

Further Questions/ Confusion or anything bothering you?

Not to worry at all! Someone from our experienced team will resolve all your queries. Our Compliance Manager will help you to give you the best advice without any fees. Get in touch with us. Write to us at info@ccoffice.in or WhatsApp/Call us +91 99 88 42 42 11.

© 2016 - 2024 Compliance Calendar LLP. See Terms of Use and Privacy Policy for more information. Unless otherwise indicated, all materials on these pages are copyrighted. No part of these pages, either text or image may be used for any purpose. Please see About Us to learn more about our firm. Please visit Refund Policy to learn about our refund and cancellation policy.