Section 8 Company

Overview

Section 8 companies are legal organizations that are started with the thing of upgrading welfare, education, charity, art, science, religion, and other activities essential to profit the society at large. These section 8 companies are synonymous with Non-profit organizations (NPO). Section 8 companies are essentially incorporated to perform the most object of the welfare of the society in any of the sectors as mentioned above.

Types of non-profit organizations:
1. Section 8 Company as per Companies Act, 2013 (Section 25 as per Companies Act, 1956)
2. Societies registered under Section 20 of the Societies Registration Act 1860
3. Trusts formed under Indian Trusts Act 1880

However, Section 8 Companies are considered best due to its systematic constitutional framework. The financial statements, directors’ report and other important documents of a Section 8 Company are easily available online on public inspection and are therefore, considered most reliable.

Our Process

Estimated time to complete the process – 11 to 13 working days

Step 1

Initial Discussion & collection of Basic information

Step 2

Apply to Name Availability of the proposed Company

Step 3

Apply for Digital Signature Certificate (DSC)

Step 4

Drafting MOA ,AOA & other Documents

Step 5

Application to grant a license in form INC-12

Step 6

License under section 8 in form INC-16

Step 7

Filling Registration Document & Get Certificate of Incorporation

Step 8

Application for PAN & TAN

Step 9

Dispatch of deliverables.

Choose Your Package

All Inclusive Pricing – No Hidden Fee

Basic
- ₹ 15000
- - DSC (Digital Signature)
  - 2 DIN for Director's
  - Name Approval for Company
  - MOA & AOA Drafting
  - PAN & TAN Card of Company
  - Certificate of Incorporation
  - Bank Account Opening Support
  - Stamp Duty & Registration Charges*
  - Incorporation Fees
  - GST Registration
  - Commencement of Business
- Purchase Now

Premium
- ₹ 20000
- - DSC (Digital Signature)
  - 2 DIN for Director's
  - Name Approval for Company
  - MOA & AOA Drafting
  - PAN & TAN Card of Company
  - Certificate of Incorporation
  - Bank Account Opening Support
  - Stamp Duty & Registration Charges*
  - Incorporation Fees
  - GST Registration
  - E Way Bill Portal Registration
  - Accounting Software
  - MSME Registration
  - Auditor Appointment Assistance
  - Commencement of Business
  - PF & ESIC Registration
  - Professional Tax Registration
- Purchase Now

Ultimate
- ₹ 37000
- - DSC (Digital Signature)
  - 2 DIN for Director's
  - Name Approval for Company
  - MOA & AOA Drafting
  - PAN & TAN Card of Company
  - Certificate of Incorporation
  - Bank Account Opening Support
  - Stamp Duty & Registration Charges*
  - Incorporation Fees
  - GST Registration
  - E Way Bill Portal Registration
  - Accounting Software
  - MSME Registration
  - Auditor Appointment Assistance
  - Commencement of Business
  - PF & ESIC Registration
  - Professional Tax Registration
  - 1 Year GST Return Filing
  - Income Tax Return Filing
  - 1 Year ROC Filing
- Purchase Now

Note:

In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7500 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.10, 000 will be applicable. In case of Kerala, an additional stamp duty of Rs.3000 will be applicable

2. Cost of 3 Director’s covered above,If No. of Director’s more than 3 then Cost of DSC and Din Application Increase By 1500 Rs Per Director

Benefits

Tax Exemption

Numerous Tax exemptions are provided to Section 8 Companies, specifically to the donors who are contributing to Section 8 Companies, they're going to claim the Tax exemption against the donation they made to an area 8 company.

No minimum capital requirement

There is no prescribed limit over section 8 companies for the minimum capital requirement unlike other entities like public limited, but the capital structure is usually altered at any stage due to the specified for the expansion of the company.

No stamp duty payable

A section 8 Company is exempted for the payment of stamp duty applicable for registration as applicable just in case of other structures like private limited or a public limited

Credible

A Section 8 Company has more trustworthiness as compared to the other Non-profit organization structure be it a Trust or Society because it's going to be licensed by the central government. it's more inflexible regulations like no change in MOA and AOA are frequently done at any stage or situation during a section 8 Company. an area 8 company thanks to its strict compliances as regard to functioning features a more reliable image as compared to other legal structures.

Documents Required

DSC and DIN of the Directors.

Objectives and proposed work of the company.

latest photographs of Director's & Shareholder's

Director’s personal documents.

Registered office address documents viz. rental agreement or sale deed in the name of the company, utility bills not older than two months.

Clear All Your Doubts !

What are the minimum requirements to register a charitable company in India?

To register such a company, the promoters need to make sure the following:

1) The main object of the company must be to work for a charitable purpose and among those prescribed in law

2) Minimum 2 members of the company, who shall subscribe capital on incorporations

3) Minimum 2 directors within the company, one among which must be an Indian citizen and resident

4) The registered office of the company must be situated in India

What is the minimum capital required?

There is no minimum amount of capital prescribed for the charitable company. The promoters may introduce the quantity sufficient to start out and run a business.

How to reserve the name of the company?

The name of the company should be formulated as per the naming guidelines. the application for reservation of name is formed in web-form called “RUN” with a maximum of 2 unique names. The registrar may ask to re-submit the application with a special name if the names don't fulfill the wants.

How to obtain approval of the Central Government for non-profit company registration?

The promoters shall apply in e-form INC-12 for said approval from Central Government. the form is accompanied by MoA – AoA of the company, declarations from promoters, estimated the statement of income & expenditure for the next three years, etc. If the application is approved, the approval letter is issued in form INC-16.

Whether the physical presence of the promoters is required while registering?

No. The registration process is completely online, the physical presence of the promoters isn't required. All the documents and details can be transmitted through the mail or uploaded on our portal.

No. The registration process is completely online, the physical presence of the promoters isn't required. All the documents and details can be transmitted through the mail or uploaded on our portal. Can NRIs/Foreign Nationals be a Director during a Section 8 company?

Yes, an NRI or Foreign National is often a Director during a Section 8 Company after obtaining Director number. However, a minimum of one Director on the Board of Directors must be an Indian citizen and a resident.

Whether Section 8 company and NGO registrations are the same?

The Section 8 company is popularly known as NGO. However, NGOs are often registered as other business structures like trust, society, etc.

Can section 8 or a Charitable company declare dividends?

A Section 8 or Charitable Company shall not pay any dividend to its members, but apply the excess of receipts overpayments for the promotion of its objectives

What is the validity of the registration of the Section 8 company?

Once the company is incorporated, it's in existence and active as long because the annual compliances are met with regularly or it's wound-up voluntarily.

Let’s start your business journey with Book My Consultant.

Interested