Section-8 Company Registration

Section-8 company | registration services | act 2013

Section 8 companies are incorporated under section 8 of the companies act, 2013, and are formed to promote activities such as art, commerce, science, education, sports, research, social welfare, etc. These companies functions exactly like a limited company which includes all the rights and obligations that come up with a private limited company, however, section-8 registered companies differ from other companies.

The popularity of section-8 company registration in India is increasing. Moreover, the newly formed companies are getting registered as the section-8 company rather than as the NGOs or trust because section-8 companies has many advantages as compared to Trust or NGOs as they have higher credibility amongst donors, government departments and other stakeholders. And the of section-8 company registration cost is not very high.

The objectives behind forming the Section-8 company registration are as follows

  • Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of the environment or any such other object
  • It intends to apply all its profits, income, or other earnings, in promoting these objects.
  • Pays no dividend or income to its members.

Benefits of Section-8 company registration

Separate legal entity:
A section-8 company registration has many advantages as compared to the trust and societies like improved recognition and better legal standing.

Credibility:
Section-8 company registration gives more credibility to your company as compared to other non-profit organisations. It has also higher credibility amongst donors, government departments and other stakeholders.

Section-8 registered companies are most preferred from the point of view of foreign contribution

No requirement for the title unlike the private limited company there is no requirement of any suffix in section-8 company

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Documents required for section-8 company registration

  • Passport size photo of all directors
  • Address proof of the registered office
  • Objective and purpose of the company
  • PAN Number
  • Memorandum of association
  • Digital Signature Certificate (DSC)
  • Director Identification Number (DIN)
  • Rent agreement of registered office (If property is on rent)
  • NOC

Frequently Asked Questions

  • Section-8 company registration is the registration done by charity and non-profit organizations. An NGO can register under Trust Act or under Section 8 companies act, 2013 (earlier Section 25 of The Companies Act 1956)

  • The objectives behind forming the Section-8 company registration are as follows-

    • Is incorporated for the promotion of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of the environment or any such other object.
    • It intends to apply all its profits, income, or other earnings, in promoting these objects.
    • Pays no dividend or income to its members.

  • You should register section-8 company because it brings many advantages to your company.

    • Tax rebates
    • Stamp duty exemption
    • Increased credibility
    • Foreign donations and funds

    • Director’s ID proof and Address proof.
    • Digital Signature Certificate
    • Director Identification Number
    • Objectives and projected work of the Company.
    • Registered office address document

  • The registration fee for the section-8 company registration varies from company to company. It depends on your registered company but we assure you that we will offer you the best cost in section-8 company registration.

    1. At least two Board meetings during the year should be conducted.
    2. Mandatory Audit.
    3. Annual return is to be filed every year with.
    4. Income tax return is to be filed every year.
    5. Additional compliances to fulfill the registration like 12AA, 80G etc.

  • Yes section-8 companies can get the foreign funding under the Foreign direct investment FDI act. And there are many NGOs working on the international level which fund the section-8 registered companies.