Asktrix

Section 8 Company Registration in India with Asktrix

A Section 8 Company is a non-profit organization established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, or any such other object. At Asktrix, we provide comprehensive Section 8 company registration services with expert guidance throughout the entire process.

What is a Section 8 Company?

A Section 8 Company is a company registered under Section 8 of the Companies Act, 2013, with the primary objective of promoting charitable activities rather than earning profits. These companies are ideal for NGOs, charitable trusts, educational institutions, and other non-profit organizations that want to operate with limited liability protection.

Why Choose Asktrix for Section 8 Company Registration?

  • Expert Guidance: Our experienced team provides comprehensive guidance throughout the registration process
  • Dedicated Support: Personalized support tailored to your non-profit organization's needs
  • Affordable Services: Competitive pricing with transparent fee structure
  • Regulatory Compliance: Ensure full compliance with all legal requirements and regulations

Key Features of a Section 8 Company

  • Non-Profit Objectives: Established solely for charitable purposes without profit motive
  • Limited Liability: Members' liability is limited to the amount they guarantee to contribute
  • No Minimum Capital: No minimum capital requirement for registration
  • No Profit Distribution: Profits must be used for promoting the company's objectives
  • Tax Exemptions: Eligible for various tax exemptions under Income Tax Act
  • Grants and Funding Opportunities: Access to government grants and funding programs

Types of Section 8 Companies

  • Charitable Section 8 Companies: Focused on charitable activities and social welfare
  • Educational Section 8 Companies: Established for promoting education and research
  • Environmental Section 8 Companies: Dedicated to environmental protection and conservation
  • Sports and Cultural Section 8 Companies: Promoting sports, arts, and cultural activities

Documents Required for Section 8 Company Registration

The following documents are essential for Section 8 company registration:

  • Identity Proof: PAN card, Aadhaar card, or passport of all directors
  • Address Proof: Utility bills, bank statements, or rental agreements
  • Director Identification Number (DIN): Unique identification number for each director
  • Digital Signature Certificate (DSC): Required for online filing of documents
  • Memorandum of Association (MOA): Defining the company's objectives and scope
  • Board Resolution: Resolution for incorporation and appointment of directors

Eligibility Criteria for Registering a Section 8 Company

To register a Section 8 company, the following criteria must be met:

  • Non-Profit Objectives: Company must be established for charitable purposes only
  • Minimum Directors: At least 2 directors required (maximum 15)
  • Indian Residents: At least one director must be a resident of India
  • Other Conditions: Must comply with all provisions of Companies Act, 2013

Step-by-Step Registration Process with Asktrix

Our streamlined process ensures quick and hassle-free Section 8 company registration:

Step 1: Obtain Digital Signature Certificate (DSC)

Obtain DSC for all directors to enable online document signing and filing.

Step 2: Apply for Director Identification Number (DIN)

Apply for DIN for all directors through Form DIR-3.

Step 3: Name Reservation

Submit company name for approval through RUN (Reserve Unique Name) service.

Step 4: Draft MOA and AOA

Prepare Memorandum of Association and Articles of Association with charitable objectives.

Step 5: File SPICe+ Form

Submit SPICe+ form with all required documents and information.

Step 6: Certificate of Incorporation

Receive Certificate of Incorporation and commence charitable activities.

Step 7: PAN and TAN Application

Apply for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN).

Step 8: Comply with Tax Exemptions

Apply for tax exemptions under Section 12A and 80G of Income Tax Act.

Rules and Regulations for Section 8 Companies

Section 8 companies must comply with various regulations under the Companies Act, 2013:

  • Non-Profit Declaration: Must declare that profits will be used for charitable purposes only
  • Taxation and Exemptions: Eligible for tax exemptions under Income Tax Act
  • Governance and Directors: Must maintain proper governance structure
  • Filing Annual Returns: Regular filing of annual returns and financial statements

Compliance Requirements After Registration

Post-registration, Section 8 companies must fulfill various compliance obligations:

  • Annual General Meetings (AGM): Conduct AGM within 6 months of financial year end
  • The Income Tax Act: Comply with tax exemption requirements under Section 12A and 80G
  • Statutory Registers: Maintain proper statutory registers and records
  • Annual Audit: Conduct annual audit of financial statements
  • Charitable Activities: Ensure all activities align with charitable objectives

Benefits and Advantages of Section 8 Companies

  • Tax Exemptions: Eligible for various tax exemptions under Income Tax Act
  • Government Grants and Donations: Access to government funding and donations
  • Limited Liability Protection: Members' liability is limited to their contribution
  • Enhanced Credibility: Registered status provides credibility and trust
  • Public Trust: Builds public trust and confidence in charitable activities
FAQ

Frequently Asked Questions

Find answers to common questions about Section 8 company registration in India.

What is the main objective of a Section 8 Company?

A Section 8 Company is established for promoting charitable activities such as commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection, without any profit motive.

Can a Section 8 Company distribute profits?

No, Section 8 Companies cannot distribute profits to members. All profits must be used for promoting the company's charitable objectives and cannot be distributed as dividends.

What is the minimum number of directors required?

A Section 8 Company requires a minimum of 2 directors and can have a maximum of 15 directors. At least one director must be a resident of India.

Is there a minimum capital requirement?

No, there is no minimum capital requirement for Section 8 Companies. They can be incorporated with any amount of capital as per their requirements.

What tax exemptions are available?

Section 8 Companies are eligible for tax exemptions under Section 12A and 80G of the Income Tax Act, subject to fulfillment of certain conditions and compliance requirements.

Can foreign nationals be directors?

Yes, foreign nationals can be directors in Section 8 Companies. However, at least one director must be a resident of India.

How long does registration take?

With Asktrix, Section 8 company registration typically takes 10-20 working days, depending on document verification and government processing time.

What documents are required for registration?

Required documents include identity proof, address proof, DIN, DSC, MOA, AOA, and board resolution. All documents must be properly attested and verified.

Can Section 8 Companies receive foreign funding?

Yes, Section 8 Companies can receive foreign funding, but they must comply with Foreign Contribution Regulation Act (FCRA) requirements and obtain necessary approvals.

What are the ongoing compliance requirements?

Section 8 Companies must conduct AGMs, file annual returns, maintain statutory registers, conduct audits, and ensure all activities align with charitable objectives.

Can Section 8 Companies change their objectives?

Yes, Section 8 Companies can change their objectives, but it requires approval from the Registrar of Companies and must still maintain charitable nature.

What happens if a Section 8 Company makes profits?

Any profits made by Section 8 Companies must be used for promoting their charitable objectives and cannot be distributed to members or shareholders.

Is audit mandatory for Section 8 Companies?

Yes, Section 8 Companies must conduct annual statutory audit of their financial statements and file audited accounts with the Registrar of Companies.

Can Section 8 Companies engage in commercial activities?

Section 8 Companies can engage in commercial activities only if the profits are used for charitable purposes and the activities align with their charitable objectives.

What is the difference between Section 8 Company and Trust?

Section 8 Companies are incorporated under Companies Act with limited liability, while Trusts are governed by Indian Trusts Act. Section 8 Companies offer better governance structure and limited liability protection.

Starting your Section 8 Company with Asktrix provides not only legal registration but also ongoing support for compliance and growth. Explore a smooth path to charitable success and secure your organization's future with Asktrix's professional guidance and support. For new clients tax saving guidance will come at free of cost. For more details fill the form and get the benefits

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