Section 8 Company Registration is the ideal choice for those looking to form a not-for-profit organization in India. These companies are set up with the objective of promoting charitable, educational, or other socially beneficial purposes. As a tax consultant at Taxlegit, I, Deeksha Khurana, specialize in assisting with Section 8 Company Registration, ensuring the process is smooth and compliant with all legal requirements.

What is a Section 8 Company?

A Section 8 Company is formed under the Companies Act, 2013 with the primary goal of promoting activities such as charity, arts, education, social welfare, and environmental protection. Unlike other companies like Pvt Ltd Company Registration or Sole Proprietorship Registration, Section 8 companies do not distribute profits to their members. Instead, all profits are used to achieve the company’s objectives.

Key Benefits of Section 8 Company Registration

• Tax Benefits: Section 8 companies are eligible for various tax exemptions under the Income Tax Act, allowing more resources to be allocated to their charitable activities.
• Limited Liability: Members enjoy limited liability, meaning their personal assets are protected.
• Separate Legal Entity: Section 8 companies have a distinct legal identity, allowing them to enter contracts and own property in their name.
• No Minimum Capital Requirement: Unlike Pvt Ltd Company Registration, Section 8 companies do not have a minimum capital requirement, making it easier to get started.

Steps for Section 8 Company Registration

Step 1: Obtain Digital Signature Certificate (DSC)

To begin the registration process, you need a Digital Signature Certificate (DSC) for the proposed directors of the company. This certificate is used to sign documents electronically.

Step 2: Apply for Director Identification Number (DIN)

Next, you must apply for a Director Identification Number (DIN) for the directors. This is essential for registering any company under the Companies Act, 2013, whether it’s a Section 8 Company, Pvt Ltd Company, or even a Sole Proprietorship Registration.

Step 3: Name Approval

The company name must be unique and relevant to the purpose of the Section 8 organization. You need to submit an application to the Ministry of Corporate Affairs (MCA) for name approval. The name should reflect the activities of the company, such as social welfare or educational services.

Step 4: Drafting the Memorandum and Articles of Association

You need to draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company’s objectives, rules, and regulations. It’s crucial that the objectives align with the Section 8 Company’s charitable or social purpose.

Step 5: File for Incorporation

After completing the above steps, file for incorporation with the Registrar of Companies (RoC). The documents required include:

• MOA and AOA
• DIN and DSC of directors
• Identity proof and address proof of directors
• A declaration stating the company’s objectives

Step 6: Get License from MCA

After submitting the incorporation documents, the MCA will issue a license to operate as a Section 8 Company if all requirements are met. This license allows the company to operate as a non-profit entity.

Documents Required for Section 8 Company Registration

To register a Section 8 Company, you need the following documents:

• PAN card of directors
• Aadhar card or voter ID as address proof
• Passport-sized photographs of directors
• Rental agreement or ownership proof of the registered office
• NOC from the property owner

Difference Between Section 8 Company and Pvt Ltd Company

While both Section 8 Companies and Pvt Ltd Company Registrations are governed by the Companies Act, 2013, the key difference lies in their objectives. A Pvt Ltd Company aims to earn profits for its shareholders, while a Section 8 Company operates for charitable purposes. Additionally, Section 8 companies enjoy tax benefits and do not have a minimum capital requirement.

Difference Between Section 8 Company and Sole Proprietorship

A Sole Proprietorship is owned and managed by a single individual and is not a separate legal entity. Unlike a Section 8 Company, which is recognized as a legal entity, a sole proprietorship doesn’t provide limited liability protection. This means the owner is personally responsible for all debts and liabilities of the business. Also, Section 8 companies are eligible for tax exemptions, whereas sole proprietorships are not.

Why Choose Taxlegit for Section 8 Company Registration?

At Taxlegit, I specialize in making the Section 8 Company Registration process simple and stress-free. With years of experience in corporate tax and legal compliance, I ensure that your registration is completed quickly and efficiently. From preparing documents to handling MCA filings, I take care of everything, so you can focus on your social or charitable mission.

Conclusion

Registering a Section 8 Company is an excellent option for those looking to contribute to social causes. With benefits like tax exemptions and limited liability, it’s a suitable structure for non-profit organizations. At Taxlegit, I am committed to providing you with the best consulting services for Section 8 Company Registration, ensuring compliance with all legal procedures. Reach out today to get started!

Author: Deeksha Khurana

I’m Deeksha Khurana, a tax consultant at Taxlegit, specializing in MSME Registration services. I help small and medium enterprises (SMEs) streamline the process of registering under the Micro, Small, and Medium Enterprises (MSME) Act. With my expertise, I ensure your business enjoys the benefits and incentives provided by the government, including subsidies and easier access to credit. My goal is to make MSME registration simple and stress-free by providing end-to-end support. At Taxlegit, I’m dedicated to delivering personalized and efficient registration services, ensuring your business complies with regulations while maximizing growth opportunities.