Easily Start a Section 8 Company

Complete solution for incorporation of a not for profit Section 8 company and obtaining Section 8 company license.

Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established 'for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.

A Section 8 Company is similar to a Trust or Society; expect, a section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.

Reasons to Register a Section 8 Company

• Registration
• Section 8 Companies are registered under the Companies Act, 2013. Hence, the process for registration and certificate of incorporation for a Section 8 Company is issued by the Ministry of Corporate Affairs, Government of India.
• Name
• Section 8 Companies can be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organization, Federation, Chamber of Commerce, Development and more.
• Management
• Trusts are managed by Trustees as per a Trust Deed. Section 8 Company does not have the concept of Trustees. Hence, Section 8 Companies are managed by the Board of Directors based on the MOA and AOA of the Section 8 Company.
• Profits
• Like a private limited company, a Section 8 Company will also have revenue, expenses, profits and losses. However, in a Section 8 Company the profits can be used only for the charitable or not-for-profit purposes mentioned in the MOA.
• Transferability
• The management of a Section 8 Company can be easily transferred from one person to another by altering the changing the composition of Board of Directors. Section 8 Company can also be controlled by shareholders.

DocumentS Required for Section 8

• Identity and Address Proof
• Identity and address proof will be required for all directors and shareholders of the company to be incorporated. In case of Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarized copy of passport must be submitted mandatory. All documents submitted must be valid. Residence proof documents like bank statement or electricity bill must be less than 2 months old.
• Registered Office Proof
• All companies must have a registered office in India. To prove access to the registered office, a recent copy of the electricity bill or property tax receipt or water bill must be submitted. Along with the utility bill, rental agreement or sale deed and a letter from the landlord with his/her consent to use the office as a registered office of a company must be submitted.

Documents Required for Section 8 Company

• Step 1
• Identity Proof of Director
• PAN for Indian Nationals. notarised Passport Copy for Foreign Nationals.
• Step 2
• Address Proof of Directors
• Passport, Drivers License, Aadhaar(AND) Bank Statements or Electricity Bill. The two document must be valid, recent and less than 2 months old.
• Step 3
• Proof for Registered Office in India
• Rental Agreement or Sale Deed (AND) COpy of Electricity Bill, Property Tax Receipt. No Objection Letter from Landlord for Use of Premises as Registered Office.
• Step 4
• Signed Incorporation Documents
• Signed Digital Signature Application Documents in Hard Copy. Other Incorporation Document Signed and Uploaded as Softr Copy.

How we help with section 8 company registration

IndiaFilings.com can register a Section 8 Company in 20 to 30 days, subject to ROC processing time.

• Obtaining DSC & DIN
• Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Section 8 Company. DIN and DSC can be obtained for the proposed Directors within 5 to 7 days.
• Name Approval & License
• Once DIN and DSC are available for at least two Directors, application for reservation of name for section 8 company can be made to MCA. Once, the name is reserved, a license must be obtained prior to incorporation.
• Section 8 Company Registration
• Once the license is obtained, registration documents can be submitted to the MCA along with an application for registration. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time.