Section 8 Company Registration Online

What is a Section 8 company?

The Section 8 company is considered an upgraded form of registration compared to societies and trusts, offering numerous advantages for charitable institutions. It has become the most popular choice for NGO registration in India due to its ease of registration, operation, and management.

The primary objective of a Section 8 company is to promote non-profit causes encompassing areas such as commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, and other charitable purposes.

Starting from April 1, 2021, it is mandatory for all NGOs to file Form CSR-1 on the MCA (Ministry of Corporate Affairs) portal to register with the Central Government. This initiative aims to enable efficient monitoring of CSR (Corporate Social Responsibility) expenditures throughout the country. The MCA has made the CSR-1 Form available on its website, and it is now a necessary requirement for social organizations seeking CSR funds or acting as CSR implementing agencies to submit this form.

What are the documents required for Section 8 company registration?

To register a Section 8 Company, the following documents are required to submit:

• PAN Card of all directors and shareholders
• Aadhaar Card of all the directors and shareholders
• Recent Bank Statement of all the directors and shareholders
• Phone Bill or Electricity Bill of all the directors and shareholders
• Voter ID or Passport or Driving license of all the directors and shareholders
• Passport size photo of all the directors and shareholders
• Rental agreement copy if the registered office is rented.

What is the process for registering a Section 8 company?

To begin the process of registering a Section 8 company, you need to start by obtaining a Digital Signature Certificate (DSC). Make sure to apply for your DSC promptly.

Filing of Section 8 Incorporation Forms on the MCA Portal

Once you have received approval from the regional director, you can proceed with filing the Section 8 company registration application along with the necessary documents on the Ministry of Corporate Affairs (MCA) portal. Ensure that you provide all the required clarifications to the Registrar of Companies (ROC) during this process. Upon satisfactory submission of documents, the ROC (Registrar of Company) will issue a Certificate of Incorporation, along with a distinctive Company Identification Number (CIN). This process is carried out in accordance with the requirements of SPICE plus (Spice +).

Submission of MoA and AoA

Once you have obtained the license, you will need to draft the Memorandum of Association (MoA) and Articles of Association (AoA) to complete the Section 8 company registration application.

PAN, TAN, and Bank Account

Before proceeding with the registration of your Section 8 company, ensure that you have obtained your Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and have a bank account ready for the company.

Registration of a Section 8 company in India is a unique process. It involves the establishment of a nonprofit organization dedicated to social welfare and the betterment of society and the country.

What are the requirements and compliances for Section 8 company registration?

Requirements and Compliance for Section 8 Company Registration in India:

Minimum Requirement:
A Section 8 Company must be incorporated with a minimum of two directors and two members.

No Minimum Share Capital:
There is no minimum share capital requirement for registering a Section 8 company.

Charitable Object:
Section 8 companies must have non-profit objectives.
Profits generated by a Section 8 company cannot be distributed among its members.
Profits should be reinvested in the company's operations or utilized for furthering its charitable purposes.

Management Team:
Section 8 companies are governed by a Board of Directors, as specified in the Memorandum of Association (MoA) and Articles of Association (AoA).

Regulation under the Companies Act, 2013:
Section 8 companies are required to comply with the rules and regulations prescribed under the Companies Act 2013.
This includes maintaining proper books of accounts and filing necessary returns and forms.

Income Tax:
Section 8 companies must adhere to the provisions of the Income Tax Act.

GST Registration:
Any person or company involved in providing goods and services with an aggregate turnover exceeding prescribed limit in a year is required to register for Goods and Services Tax (GST).

What are the Fees for Section 8 company?

The registration fees for Section 8 companies in India:

• DSC & DIN: Approximately Rs. 3,000
• Company Name Reservation: Around Rs. 1,000
• MoA, AoA, Government, and Incorporation fees: Rs. 6,000-8,000*
• Notary and Stamps: Approximately Rs. 2,000
• Professional Fees: Rs. 8,000-10,000*

Please note that these figures are approximate and can vary based on various factors.

What are the benefits of Section 8 company registration?

Benefits of Section 8 Company Registration:

• No minimum capital requirement: Section 8 companies do not have a minimum capital requirement for registration.
• Tax benefits: Section 8 companies are eligible for various tax benefits under the provisions of the Income Tax Act.
• No stamp duty: There is no stamp duty imposed on the incorporation of a Section 8 company in India, unlike private limited companies.
• Separate legal identity: Section 8 companies have a distinct legal identity separate from their members.
• Credibility: Section 8 companies have higher credibility compared to other forms of charitable organizations due to their strict compliance requirements, including mandatory annual audits.
• Exemption for donors: If a Section 8 company is registered under Section 80G, donors can avail tax exemption benefits under the Income Tax Act.

Annual Compliances for Section 8 company

Annual compliances for Section 8 companies:

• Minimum of two board meetings: Section 8 companies are required to conduct a minimum of two board meetings in a year.
• Maintenance of Books of Accounts: Proper books of accounts must be maintained, including records of financial transactions, assets, liabilities, and income and expenditure.
• Preparation of Financial Statements: Section 8 companies need to prepare annual financial statements, including the balance sheet, profit and loss (P&L) account, and cash flow statement.
• Mandatory Audit: An annual audit of the company's financial statements is mandatory.
• Annual General Meeting: Annual general body meeting is to be conducted once a year within 6 months of the end of financial year
• Income tax return filing: Section 8 companies are required to file ITR annually, reporting their income and claiming applicable exemptions or deductions.
• Filing of financial statements: Section 8 companies need to file their financial statements, including the balance sheet and profit and loss (P&L) account, with the ROC (Registrar of Companies) using Form AOC-4.
• Annual Return: An annual return in Form MGT-7 needs to be filed every year, providing information about the company's directors, shareholders, and other key details.
• Additional compliances: Section 8 companies may have additional compliances to fulfill specific registrations, such as obtaining 12AA registration for tax exemption or 80G registration for tax benefits to donors.