LegalFidelity is Recognized by Government Of India / Ministry of Commerce & Industry under

startup-india-logo

DIPP42730

Section 8 Company Registration

Starting @ Rs 9,999.00 All Inclusive (Hurry Up! Limited Time Offer)

Free Consultation

No Hidden Costs

Online Process

Satisfaction Guaranteed

Get In Touch

* Stamp duty Vary State to State
* For NRI/Foreign Directors, Additional charges will apply

Procedure For Section 8 Company Registration online

steps-for-registration

Documents Required for Section 8 Company Registration

Only Scanned Copies are required

ID Proof

PAN Card of all directors alongwith Voter ID/ Passport/ Driving License

Address Proof

Latest Bank statement/ Electricity Bill/ Telephone Bill/ Mobile Bill not older than two months

Photo

Latest Passport Size Photograph

Registered Office Proof

Utility bill (not older than two months) and Notarized Rent agreement (in case of rented property)/ Registry Proof or House Tax Receipt (in case of owned property), No Objection Certificate (NOC) from the owner

What You Get

Incorporation Certificate

Memorandum of Association

Articles of Association

Company PAN

Company TAN

Name Approval Letter

2 DSC

2 DIN

Section 8 Company Registration - An Overview

A Section 8 Company is a company which does not have the objective of making profit by carrying out its business. It primarily has charitable and not-for profit objectives.  This type of company is recognized as a Section 8 Company because they are registered under Section 8 of the Companies Act, 2013 (erstwhile Section 25 of the Companies Act, 1956)

Unlike other forms of legal entities such as Partnership Firm Registration, Private Limited Company, LLP, etc. which have a main objective of making profit from the business, a Section 8 company is a not-for-profit type of organization.

According to the Companies Act, 2013, a Section 8 company is the one whose main objective is the promotion of fields such as social welfare, education, environment protection, research, arts, science, sports, commerce, religion, charity and other similar objectives. This type of company uses its profits towards the fulfillment of its cause and does not pay any type of dividend to its members.

Confederation of Indian Industries (CII) & Federation of Indian Chambers of Commerce and Industry (FICCI) are some of the famous examples of Section 8 Companies. These companies have the main objective of facilitating the growth of trade & commerce in India.

We, at LegalFidelity, can help you in Section 8 Company Registration.

Requirements for Incorporation of a Section 8 Company

The existence of such companies is based on the license granted to them. The 3 main conditions are as follows:

  1. The company should only be formed for charitable or non-profit purposes.
  2. Income and profits should be used towards fulfillment of these objectives.
  3. The company should not pay any kind of dividend to its members…

These types of companies cannot do anything that the license disallows. They cannot even alter their Articles of Association (AoA) or Memorandum of Association (MoA) without the permission from the Central Government.

Features of a Section 8 Company

A Section 8 company has the following distinct features that other types of companies do not have:

Charitable Objectives
A Section 8 company’s main objective is the promotion of fields such as charity, social welfare, education, environment protection, research, arts, science, sports, commerce, religion and other similar objectives.

Limited Liability
Members of the Section 8 Company have limited liability.

No minimum share capital
Unlike other types of companies, a Section 8 Company does not have the minimum share capital requirement.

Privileges
Since these types of companies have non-profit objectives, the Companies Act, 2013 has provided them with several benefits and exemptions under Section 80G and Section 12AA of the Income Tax Act

Firms as members
In addition to Individuals and Associations of Persons, Section 8 of the Companies Act, 2013 also allows firms to be members of these types of companies.

Privileges of a Section 8 Company

A Section 8 Company enjoys the following privileges:

  • Limited Liability
  • Several Tax Exemptions under Section 80G and Section 12AA of the Income Tax Act
  • Perpetual existence & separate legal status
  • No physical presence required
  • No Minimum Capital requirements
  • More credibility than NGOs, trusts & Societies as they are recognized by the Central Government License.

FAQs on Section 8 Company Registration online in India

Any individual, NRI or even foreign national can become a director in a Section 8 Company. He/she must have to qualify the following criteria:

  • Must be a natural person
  • Must be over 18 years of age
  • Director Identification Number (DIN) is mandatory

Yes, an NRI or Foreign National can be a partner in the Section 8 Company.

Unlike other types of companies, a Section 8 Company does not have the minimum share capital requirement.

 In addition to Individuals and Associations of Persons, Section 8 of the Companies Act, 2013 also allows firms to be members of these types of companies. Any individual, company or NRI can also become a member of a Section 8 Company.

Yes, one can be a partner in an LLP, Director of a Private Limited Company or OPC  even if he is already employed. There are no such restrictions.  However, you must ensure that your employment agreement does not contain any restrictions for you to become a Director of any company or a Partner in an LLP.