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Complete solution for incorporation of a Section 8 Company from Rs.29899/-

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Eligibility

To incorporate a Section 8 company a minimum of two persons are required over the age of 18 years with atleast one person being an Indian citizen and resident.

Section 8 Company Registration

In India, a non-profit organisation can be registered as Trust by executing a Trust deed or as a Society under the Registrar of Societies, or as a non-profit company under Section 8 Company of the Companies Act, 2013. A Section 8 Company is the same as Section 25 company under the old Companies Act, 1956. Under the new Companies Act 2013, Section 25 (as per the old Act) has now become Section 8.

As per Section 8(1a, 1b, 1c) of the Companies Act, 2013, a Section 8 company can be established for the “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”. The Act further states that a Section 8 company can purse the above objects subject to the condition that it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”. In simple terms, a Section 8 company must promote a public cause and the proceeds generated by the entity must solely be used to support the stated public cause(s) only.

Section 8 Company Incorporation Process

Private limited company and Section 8 company registration procedure are very similar to each other. A minimum of two Directors are required to start a Section 8 company. One of the Director must be an Indian Citizen and Indian Resident - whereas one or more persons acting as Director can be an Indian National or Foreign National. In addition to the required number of persons, a registered office address within India would be required for the Section 8 Company. Finally, Section 8 company would be subject to the following conditions:

  • has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object
  • intends to apply its profits if any, or other income in promoting its objects; and
  • intends to prohibit the payment of any dividend to its members, the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”, or as the case may be, the words “Private Limited”, and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.
  • the company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies.

Digital Signature for Directors

A Trust in India is controlled by the Trustees mentioned in the Trust Deed. A Section 8 Company would be controlled by the Board of Directors - similar to a private limited company. During the incorporation process, the digital signature certificate is obtained for the proposed Directors. To obtain digital signature and DIN, the proposed Directors must submit a copy of their:

  • PAN Card or Aadhar Card
  • Drivers License/Passport/Election ID/Other Government Issued ID

Once the documents are submitted, the applicant must complete an OTP and eKYC procedure through a smartphone to obtain a digital signature in their name.

Section 8 Company Name Approval

In parallel to the digital signature application processing, the name approval application can be initiated for the Section 8 Company to the MCA. The name of a Section 8 Company must end with the words prescribed for this purpose like foundation, forum, association, federation, chambers, confederation, council, electoral trust, etc. The words names used in a Section 8 Company are foundation and association. The name approval process can be completed in 24-72 hours.

Incorporation Certificate

Once the name approval and digital signatures are obtained, an IndiaFiligns Incorporation Expert would prepare the MOA, AOA and incorporation application for the Section 8 Company. All the Directors must sign the document and upload a copy on the IndiaFilings platform through the mobile or web app. Once the documents are received and verified, the incorporation application is filed with the MCA.

On approval of the incorporation application, the Government would issue the incorporation certificate, RD license, PAN and TAN for the Section 8 Company. The entity can now use the details above open a bank current account through IndiaFilings with banks like ICICI or DBS or Citi Bank in India.

80G Certificate for Section 8 Companies

80G is a certificate that exempts a person - making a donation to a Section 8 company from part or fully paying taxes on the donation amount. There is, however, a maximum allowable deduction criterion. The criterion is if the aggregate of the amount you donate exceeds 10% of the total gross income, then the excess amount will not qualify for tax benefit. 80G certificates made its way into law book in the year 1967-68, and it continues to be an important tax-saving mechanism for millions of taxpayers in India.

12A Registration for Section 8 Companies

12A registration is a one-time registration obtained by most Trusts, right after incorporation to be exempted from paying income tax. Section 8 Company, Trusts and NGOs having 12A registration enjoy exemption from paying income tax on the surplus income of the Trust or NGO. Income tax exemption is available for all non-profit NGOs. Hence, it is important for all Trusts, NGOs and other Not-for-Profit organizations to be aware of Section 12A of Income Tax Act and obtain the same, soon after incorporation of the Trust or NGO.

FCRA Registration for Section 8 Companies

Organizations seeking foreign contributions for definite cultural, social, economic, educational or religious programmes may obtain FCRA registration or receive foreign contribution through “prior permission” route. It is preferable for an FCRA applicant to be a Trust or Society or a Section 8 Company. The not-for-profit entity must have also been in existence for a minimum of three years while making the FCRA application. It should also not have received any foreign contribution prior to that without the Government’s approval. Additionally, the entity seeking registration should have spent at least Rs.10,00,000/- over the last three years on its aims and objects, excluding administrative expenditure. Statements of Income & Expenditure, duly audited by Chartered Accountant, for last three years are to be submitted to substantiate that it meets the financial parameter.

IndiaFilings Section 8 Company Registration

As a company driven to help people building organisations and institutions, IndiaFilings has had the pleasure and privilege of working as a partner beside to many noble organisations focused on helping disabled children, children with AIDS etc. If you wish to start a Section 8 Company in India to promote some social good or charitable work, contact IndiaFilings today.

Company Name Availability

Companies Act, 2013 does not permit registration of identical or similar names

9 Articles to Read Before Section 8 Company Registration

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

29899

all inclusive fees

Standard

49899

all inclusive fees

  • 3 Class 2 Digital Signatures 1
  • 2 Director Identification Numbers
  • 1 RUN Name Approval 2
  • RD Approval
  • Incorporation Fee
  • Stamp Duty
  • Incorporation Certificate
  • ICICI Bank Current Account
  • PAN & TAN
  • 50+ Document Formats
  • Incorporation Kit
  • GST Registration
  • Premium LEDGERS Accounting Software 3
  • GST eWay Bill Software
  • Commencement Certificate
  • Bookkeeping
  • Financial Statement Preparation
  • Annual Report
  • Director's Report
  • Board Resolution Preparation
  • MCA Annual Return Filing
  • Income Tax Return Filing
  • 1 Year Dedicated Compliance Manager Support

Premium

69899

all inclusive fees

  • 3 Class 2 Digital Signatures 1
  • 2 Director Identification Numbers
  • 1 RUN Name Approval 2
  • RD Approval
  • Incorporation Fee
  • Stamp Duty
  • Incorporation Certificate
  • ICICI Bank Current Account
  • PAN & TAN
  • 50+ Document Formats
  • Incorporation Kit
  • GST Registration
  • Premium LEDGERS Accounting Software 3
  • GST eWay Bill Software
  • Commencement Certificate
  • Bookkeeping
  • Financial Statement Preparation
  • Annual Report
  • Director's Report
  • Board Resolution Preparation
  • MCA Annual Return Filing
  • Income Tax Return Filing
  • 1 Year Dedicated Compliance Manager Support
  • 1 Year GST Return Filing (GSTR-3B or GSTR-1)
  • Trademark Registration
  • Class 2 digital signatures with 2 year validity on secure USB token.
  • Upto 4 name options can be given in 1 RUN name approval request.
  • Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
  • Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. IndiaFilings will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company.

Section 8 Company Bank Account Opening


Bank Account Opening

Opening a current account for a section 8 company is easier when compared to opening of current account for a Trust or Society as a company is a registered legal entity – recognized by law. Therefore, once a company is incorporated, a bank account can be opened in the name of a company with the incorporation certificate of the company and identity/address proof of the Directors.

How many people are required to register a section 8 company?
A minimum of two people are required to register a section 8 company in India.
What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in a Indian Section 8 Company.

Is an office required for starting a Section 8 Company?

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.

Do I have to be present in person to incorporate a Section 8 Company?

No, you will not have to be present at our office or appear at any office for the registration of a Section 8 Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.

What are the documents required for registration?

Identity proof and address proof is mandatory for all the proposed Directors of the Section 8 Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

How long will it take to incorporate a Section 8 Company?

IndiaFilings.com can incorporate a Section 8 Company for in 20-30 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

How long is the registration of the Company valid for?

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

What is a Digital Signature Certificate?

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Section 8 Company.

What is Director Identification Number (DIN)?

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

Can NRIs / Foreign Nationals be a Director in a Section 8 Company?

Yes, a NRI or Foreign National can be a Director in a Section 8 Company after obtaining Director Identification Number. However, atleast one Director on the Board of Directors must be a Resident India.

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