Section 8 Company

Section 8 Companies are formed primarily to do social or welfare activities on not for profit terms.

Digital Filings can help you in…:

 Arranging Digital Signature Certificate (DSC) and Director Identification Number (DIN);

 Finding a Unique Company Name and Getting it Registered;

 Drafting the Company’s Constitution – Memorandum of Association (MoA) and Article of Association (AoA);

 Obtaining RD Licence

 Getting the Company’s TAN and PAN Issued by the NSDL

From INR 29,899/- all-inclusive fees; 12 Months* EMI@INR 2,670/-

Understanding Section 8 Company

Companies Act, 2013 introduced Section 8 Company, primarily to undertake not-for-profit activities, including social, charity, education, or welfare tasks. Under this set-up the profits cannot be distributed as the dividend to its members. The Section 8 Company model is similar to Section 25 Company (Trust or Society), however, it is to be registered under the Central Government’s Ministry of Corporate Affairs (MCA).

To Register a Section 8 Company a separate license is to be obtained before applying for incorporation to the Central Government of India. In order to get the license, a statement of the objects of the company and projected statement of income, expenditure, assets and liabilities for three years is to be submitted to the regional director of the MCA.

Key-Advantages of Section 8 Company

Tax Benefits

No Business Title

More Credibility

Easy to Transfer

Effectively Managed

Legal Benefits

Profits Earning

More Credibility

As an incorporated entity, Section 8 Company considered being more reliable than any other form of charitable organization. Moreover, it is subject to strict reporting under Companies Act which requires mandatory annual accounts audit for Section 8 Companies.

Tax Benefits

Once registered under the section 12 of the income tax act, 1961, Section 8 Company enjoys complete income tax rebate, otherwise it is subject to tax@30%.

Profits Earning

Section 8 Company does also have revenues, expenses, profits and losses, however, the profits can be used only for the charitable or not-for-profit purposes as specified in the MoA.

No Business Title

Even it is incorporated under the Companies Act, Section 8 Company does not need to add any title, like Pvt. Ltd. or Limited after its name and can retain its identity in its own name containing words, such as Association, Foundation, Society, Charities, Club and others.

Effectively Managed

Unlike Trusts, which are managed by its Trustees, a Section 8 Company is managed and controlled by the Board of Directors as described in its MoA and AoA.

Easy to Transfer

Management of a Section 8 Company can be easily transferred from one person to another by simply modifying the structure of Board of Directors and it can also be controlled by shareholders.

Legal Benefits

After its incorporation, Section 8 Company enjoys distinct legal entity from its members and relishes the benefits of perpetual existence, which can be interfered only by law.

Required Documentation Chart

Indian Resident

To be Submitted by Director

  • Self Attested and Scanned copy of PAN Card or Passport
  • Self Attested and Scanned copy of Voter’s ID / Passport / Driver’s License
  • Scanned passport-sized photograph
  • Specimen signature (blank document with signature)

For the Registered Office

  • Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Utility Bills (Electricity / Water / Gas)
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of No-Objection Certificate from the property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Note: Registered office can be a commercial space or even a residence.
Non-Resident Indian / Foreign Resident

To be Submitted by Director

  • Notarized and Scanned copy of Passport*
  • Notarized and Scanned copy of Passport / Driver’s License*
  • Scanned passport-sized photograph
  • Specimen signature (blank document with signature)

*Documents to be apostilled if the director is from a Commonwealth country.

For the Registered Office

  • Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Utility Bills (Electricity / Water / Gas)
  • Scanned copy of Notarized Rental Agreement in English
  • Scanned copy of No-Objection Certificate from the property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
Note: Registered office can be a commercial space or even a residence.

Connect to Our Experts Today!

Seasoned team of our vendor partners can effectively get your Section 8 Company registered and timely make it operational…
…so that you can manage and control your business, focusing on your mission critical tasks and proudly watching it Grow!

What People Frequently Ask…

How many minimum persons required for a Section 8 Company?

Two persons are needed to become the shareholder / director of the company. However, the number of shareholders can’t exceed 200.

What is the minimum capital requirement?

No minimum capital requirement is prescribed, it must be based on the business requirements.

How much is the Registration fee in case of Section 8 Company?

The registration fee is based on the amount of capital.

What many Indian resident directors are required to form a Section 8 Company?

One director of the Section 8 Company must be resident in India. A person is said, resident, when he stays in India for at least 182 days in a Fiscal Year.

What are the criteria and guidelines to Name a Section 8 Company?

Name of Section 8 Company should be unique, and it must not be same or similar to the name of any existing company or a trademark.

Name of a Section 8 Company shall not include Pvt. Ltd. or Ltd at the end, and it shall end with words like Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust,  or others.

How the earned profits are utilized in a Section 8 Company?

Profits of section 8 company to be used only for the promotion of social welfare objective of the company for which it is formed and there is no dividend paid to its members.

What is Social Welfare Objective of a Section 8 Company?

The social welfare objective of a Section 8 Company shall be to promote Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity, Protection of Environment or any such other activities.

What are the prescribed Tax Benefits in Section 8 Company?

Section 8 Company is eligible for up-to 100% income tax rebate benefits once it is registered with the income tax department.

Pocket-Friendly Options

How we Do It…

Experienced partners at Digital Filings can assist you in registering and setting-up Section 8 Company in a maximum of 20-30 business days, depending on the time coordination with the government authorities and clients.

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Obtaining the Critical First

Partners at Digital Fillings will help you in getting the DSC and DIN for the proposed Directors of the Section 8 Company which can take upto 5-7 business days.

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Getting the Essential Credentials

Post getting the DSC and DIN approvals (of at-least two Directors), we search and apply for a unique Company name with the MCA, which takes nearly 3-5 working days. Once the name is reserved, we will obtain the required business license prior to incorporation.

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Viola! Here it is!

Once the business license is received, relevant registration documents will be submitted to the MCA along with application for registration. Subject to the required processing time, MCA will approve the incorporation application in 5-7 working days. Once approved, the Certificate of Incorporation will be mailed to your registered office address.

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All Those Numbers

Digital Filings will assist in opening the bank acccount for the Section 8 Company, after the PAN and TAN is issued. TAN is used for TDS payment and other Compliance.

Our Patrons’ Speak

team-3“Heartfelt thank you for proficiently taking care of all the registration related tasks and letting me focus on my business operation without any stress.”

Srinivasan

team-3“Highly impressed by the personal attention of the professional staff in getting the GST registration done and arranging the MSME certification for my business.”

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team-3“Thank you Digital Filings for all your professional and timely support in getting my company registered.”

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team-3“I never thought it would be so easy to get my proprietorship firm registered. Thank you team Digital Filings. I will refer your proficient services to my friends too.”

Pawan

team-3“Thank you for simplifying the so complicated filing and documentation and getting my business smoothly registered.”

Amit

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