Overview Of Section 8 Company Registration
Section 8 Company involved in the legal process of establishing a non-profit organization (NGO) under the Companies Act 2013. This registration enables the organization to operate as a company with limited liability, dedicated to promoting commerce or executing activities for societal benefit. The Section 8 Company Registration process encompasses filing the necessary documents as per the Companies Act 2013 requirements. These documents typically include the Memorandum of Association, Articles of Association, and other relevant paperwork. Additionally, Section 8 Company Registration Online, may incur certain fees, which vary depending on factors such as the company's capital and the professional assistance sought. Companies can opt for online registration, streamlining the process and ensuring efficient documentation submission.
What is section 8 company?
Section 8 Companies are entities committed to carrying out charitable and communal endeavours with no overarching objective of generating profits. These organizations have special licenses, rights, and exemptions because they are registered under a different provision of the Companies Act.Benefits of Section 8 Company
These are certain benefits of Section 8 company registration in India.
Tax exemptions: Non-profit organizations (NPOs), also known as Section 8 companies, are exempt from paying income taxes as long as they use their earnings to further social or charitable objectives. This tax relief increases the entity's financial sustainability and makes it possible for it to direct resources more effectively towards its goal.
Limited Liability: Limited liability protects the personal assets of Section 8 company members in the event of debts or legal disputes. This encourages involvement in charitable and social causes without raising worries about one's financial stability.
Credibility and Trustworthiness: An organisation gains credibility and trustworthiness by enrolling under Section 8 of the Company Registration Act. Because a certified Section 8 business adheres strictly to regulatory requirements, donors, stakeholders, and beneficiaries are more likely to interact with and support it.
Funding Obtaining: doing Section 8 company registration, makes it easier to obtain funding from a variety of sources, including government grants, corporate social responsibility (CSR) funds, charitable organisations, and individual donors. In order to carry out charitable endeavours and achieve the organization's social goals, this financial support is essential
Process of Section 8 Company Registration
Registration Steps
Name Approval: Submit an application proposing your desired company name (SPICe+ form Part A). Await MCA approval.
Incorporation: Once approved, file the SPICe+ form Part B with detailed company information, MoA, AoA, and fees.
Certificate of Incorporation (COI): Upon successful registration, receives the COI, officially recognizing your company.
Documents Required for Section 8 Company Registration
Before commencing the registration, ensure the availability of essential section 8 company registration documents.
PAN Card of Directors & Shareholders
Aadhaar Card of Directors & Shareholders
Latest Bank Statement
Voter ID/Passport/Driving License
Passport Size Photograph
Rental Agreement (if applicable)
DSC & DIN of Directors
Objectives & Proposed Work details
Financial Statements, including assets & liabilities, and a five-year projection
Digital Signature Certificate (DSC)
Proof of Registered Office Address
Section 8 Company Registration Fees
When you're getting ready to register your Section 8 Company, it's important to know about the different Section 8 company registration fees so you can plan and budget properly. Here's a simple breakdown:Section 8 Company Registration Government Fees
Registration Fee:
Up to Rs. 5 lakh: Rs. 500
Rs. 5 lakh to Rs. 10 lakh: Rs. 1,000
Above Rs. 10 lakh: Rs. 2,000
Stamp Duty: Varies by state, typically between Rs. 50 to Rs. 1000.
Other Statutory Fees: Extra charges for forms, filings, and certifications may apply.
Professional Fees
Company Secretary Fees: It's not mandatory, but hiring a company secretary can be helpful. Fees depend on their experience and the work involved.
Legal Advisor Fees: Consulting with a lawyer for legal documents and guidance comes with additional costs.
Registration Service Provider Fees: If you use a professional service provider, there will be fees for handling the registration process.
Other Costs
Digital Signature Certificate (DSC): Usually Rs. 1000–Rs. 2000.
Bank Account Opening Charges: Initial charges and minimum balance requirements vary by bank.
Printing and Miscellaneous Expenses: This includes printing documents, courier charges, and other small expenses.
Online Section 8 Company Registration Procedure
The Indian Companies Act, 2013, facilitates section 8 company registration online, streamlining the establishment of non-profit organizations. The step-by-step procedure for online Section 8 Company Registration:
Step 1: Director Identification Number (DIN) and Digital Signature Certificate (DSC)
Begin by obtaining a Digital Signature Certificate (DSC) and Director Identification Number (DIN) for all proposed directors.
Step 2: Name Reservation
Propose a unique name for the company and apply for name reservation using the RUN (Reserve Unique Name) form.
Step 3: Requisite Documents
The following paperwork must be prepared and submitted to the Registrar of Companies (ROC):
- Memorandum of Association (MOA) & Articles of Association (AOA)
- Applicant's declaration (Form INC-14)
- Proposed directors' declarations (Form INC-9) and other forms
- Residential proof of directors
- Address proof of registered office
- Other relevant documents as discussed below
Step 4: Application Submission & Fee Payment
Apply for Section 8 company registration via the MCA portal using the Spice+ form. Pay the required registration fees online.
Step 5: Verification & Approval
Upon processing and approval of documents, the ROC will issue a certificate of registration, signifying successful registration as a Section 8 company in India.
Why Choose TaxLegit for Your Section 8 Company Registration Needs
When it comes to embarking on the journey of registering your Section 8 company, partnering with a reliable and experienced service provider can make all the difference. TaxLegit stands out as your trusted partner in this endeavour, offering a seamless and comprehensive approach to Section 8 company registration. Here's why you should choose TaxLegit:
Professional Staff and Expert Team: Obtain knowledgeable advice for registering your Section 8 company.
Customized Solutions: Your particular needs and objectives are understood by us.
Easy Procedure: A hassle-free registration is guaranteed by our methodical approach.
Rigid Documentation: We take great care with all documentation.
Application Process: Our services assist you in obtaining qualifications and applying quickly.
End-to-End Support: We're with you every step of the way until registration is complete.
Focus on Your Mission: Let us handle the legalities, so you can focus on making a difference.
