Know The Complete Section 8 Company Registration Process

In India, many organizations strive to promote charitable causes, education, religion, arts, science, and social welfare. To support such noble initiatives, the government offers a specialized form of company known as a Section 8 Company. Governed under the Companies Act, 2013, Section 8 Companies enjoy various legal and tax benefits, making them an ideal choice for non-profit organizations.

In this comprehensive guide, we’ll walk you through the Section 8 company registration process in detail, outline its benefits, required documents, and how professional services like Online Legal India can help simplify the entire procedure.

What is a Section 8 Company?

A Section 8 Company is a non-profit organization formed with the objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or other similar objectives.

Unlike other types of companies, a Section 8 Company is prohibited from distributing profits to its members. Instead, the income or profits are reinvested into the company’s primary objective. The term "Section 8" comes from the Companies Act, 2013, under which these companies are governed.

Key Features of a Section 8 Company

• Non-profit motive: The primary purpose is to promote social welfare and not to earn profit.

• Limited Liability: Members have limited liability.

• No Minimum Capital: There is no prescribed minimum capital requirement.

• Tax Exemptions: Eligible for several tax benefits and exemptions under the Income Tax Act.

• Separate Legal Entity: Can own property and incur debts in its own name.

Why Choose Section 8 Company Registration?

The company registration process for a Section 8 company may seem complex, but it offers several distinct advantages:

1. Credibility: A registered Section 8 Company has higher credibility compared to other NGOs.

2. Perpetual Succession: The company continues to exist even if its members change.

3. Exemptions and Incentives: Eligible for tax exemptions under Sections 12AA and 80G.

4. Funding Opportunities: Easier to secure funding from government and private donors.

5. Recognition: Recognized nationally and internationally for its structured setup.

   
   

Eligibility Criteria for Section 8 Company Registration

Before diving into the process, ensure you meet the following criteria:

• The company should aim to promote charitable objectives such as education, art, science, religion, or environmental protection.

• All profits and income must be used to promote the company’s objectives.

• No dividend should be paid to the company’s members.

  
  

Documents Required for Section 8 Company Registration

Here is a list of documents needed to initiate Section 8 company registration:

For Directors and Shareholders:

• PAN Card

• Aadhaar Card

• Passport (for foreign nationals)

• Voter ID/Driving License

• Passport-sized photographs

• Email ID and mobile number

For Registered Office:

• Electricity or utility bill (not older than 2 months)

• Rent agreement (if rented property)

• No Objection Certificate (NOC) from the property owner

Additional Documents:

• Project report on the proposed activities

• Estimated annual income and expenditure

• MOA and AOA (Memorandum and Articles of Association)

• Declaration by each director and promoter

  
  

Step-by-Step Section 8 Company Registration Process

The company registration process for a Section 8 Company involves the following steps:

Step 1: Obtain Digital Signature Certificate (DSC)

The first step is to acquire Digital Signature Certificates for all proposed directors. DSCs are essential for signing documents electronically during the registration process.

Time required: 1-2 days

Step 2: Apply for Director Identification Number (DIN)

Each director must obtain a Director Identification Number by filing the DIR-3 form with the Ministry of Corporate Affairs (MCA).

Time required: 1-2 days

Step 3: Name Approval via SPICe+ Part A

You need to apply for name reservation using the SPICe+ Part A form. The proposed name should align with the company’s objectives and end with words like Foundation, Forum, Society, Council, etc.

Example: "Education for All Foundation"

Time required: 2-3 days

Step 4: Drafting of MOA and AOA

The Memorandum of Association (MOA) and Articles of Association (AOA) outline the company’s objectives and rules. These documents must be carefully prepared to reflect the non-profit nature of the organization.

Tip: Take professional help to draft these documents correctly.

Step 5: Filing SPICe+ Part B (Company Registration Application)

Once the name is approved, the next step is to file SPICe+ Part B along with:

• MOA (INC-13)

• AOA (INC-31)

• Declaration in INC-14 by a practicing professional

• Declaration by directors in INC-15

• Address proof and identity documents

Time required: 4-5 days

Step 6: Issuance of License (Form INC-16 or INC-17)

After successful document submission, the Registrar of Companies (ROC) will verify the application. If everything is in order, the ROC will issue a license under Section 8 of the Companies Act.

Time required: 7-10 days

Step 7: Certificate of Incorporation

Post-license approval, the ROC will issue a Certificate of Incorporation. This certificate includes the Company Identification Number (CIN) and officially marks the registration of the Section 8 Company.

Post-Registration Compliances

Registering the company is just the beginning. Post-registration compliance is crucial to maintain legal standing:

1. Apply for PAN and TAN

2. Open a current bank account

3. Register under Section 12AA and 80G for tax exemption

4. Maintain proper books of accounts

5. File Annual Returns with MCA

6. Conduct regular Board Meetings and General Meetings

   
   

Common Challenges in Section 8 Company Registration

While the process seems straightforward, many applicants face the following challenges:

• Name rejection due to similarity or non-compliance with naming guidelines

• Incorrectly drafted MOA or AOA

• Delays in approval due to missing documents

• Lack of clarity in charitable objectives

To avoid these issues, it’s advisable to seek expert help during the section 8 company registration process.

How Online Legal India Can Help

At Online Legal India, we specialize in making your company registration process smooth and hassle-free. Our dedicated legal experts provide end-to-end support for:

• Preparing and filing necessary forms

• Drafting MOA and AOA as per MCA guidelines

• Ensuring compliance with documentation requirements

• Regular follow-ups with the Registrar of Companies

• Post-registration legal and tax advisory

With years of experience, we’ve helped thousands of NGOs, trusts, and non-profits get registered and become fully compliant.

Conclusion

Registering a Section 8 Company is one of the most structured and legally compliant ways to start a non-profit in India. While the process may appear complex, understanding each step and getting professional guidance can make it smooth and error-free.

If you’re committed to a charitable cause and want to establish an organization that truly makes a difference, a Section 8 Company is your best bet.

For complete support with company registration and ongoing legal compliance, Online Legal India is here to assist you at every step.