Section 8 Company Registration in India

  • Issue DSCs for proposed directors to sign MCA forms digitally.
  • Apply DIN through DIR-3 for all new directors.
  • Help you choose and reserve a unique company name under INC-1.
  • File license application with objectives, AOA, MOA, declarations & documents.
  • Prepare and submit complete incorporation documents including MOA, AOA, and declarations.

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What is a Section 8 Company?

A Section 8 Company is a non-profit organization registered under the Companies Act 2013 to promote arts, science, education, sports, charity, or environmental causes. Profits are reinvested into these objectives—never distributed to members. Unlike trusts/societies, it offers limited liability protection and enhanced credibility while operating as a separate legal entity. CA Vakeel simplifies registration for NGOs, foundations, and social enterprises.


Legal Framework & Unique Attributes

FeatureDetails
Profit Utilization100% reinvested in charitable objectives.
Minimum CapitalNo requirement (unlike private companies).
Name FlexibilityNo "Section 8" suffix needed (e.g., "ABC Education Foundation").
GovernanceManaged by directors; min. 2 for private structure, 3 for public.
ComplianceMust file annual returns with ROC + maintain statutory registers.

Advantages of Choosing Section 8 Structure

  • 100% Tax Exemption: Under Section 12AA of Income Tax Act.
  • Credibility Boost: Stringent compliance builds donor trust.
  • Limited Liability: Directors’ personal assets protected.
  • Perpetual Existence: Survives beyond founders’ lifetimes.
  • Funding Access: Eligible for CSR grants, foreign donations (FCRA).
  • No Stamp Duty: Exempt during registration.

Who Can Register & Prerequisites

Founders must be:

  • Indian citizens/HUFs or entities with charitable objectives. Key requirements:
  1. Directors: Min. 2 (private) or 3 (public).
  2. Members: Max. 200 for private structure; no limit for public.
  3. MOA/AOA: Must state non-profit objectives clearly.
  4. Profit Restriction: Zero distribution to members.

Essential Registration Papers

  1. Director Documents: PAN, Aadhaar, address proof.
  2. Office Proof: Lease agreement + utility bill.
  3. MOA & AOA: Drafted for charitable objectives.
  4. Digital Signatures (DSC): For all directors.
  5. Consent Forms: INC-3 (nominee consent), DIR-2 (director consent).
  6. Declaration: Unregistered entity status (if applicable).

CA Vakeel drafts MOA/AOA and verifies document compliance.

6-Step Incorporation Guide

Step 1: Obtain DSC & DIN

  • Secure Digital Signatures + Director Identification Numbers (Form DIR-3).

Step 2: Name Reservation

  • File INC-1 for unique name approval (e.g., "Green Earth Initiative").

Step 3: Draft MOA/AOA

  • Define charitable objectives, governance rules, and profit-usage clauses.

Step 4: File SPICe+ Form (INC-32)

  • Submit with MOA/AOA, director details, and office proof.

Step 5: Apply for License (INC-12)

  • ROC issues license after verifying charitable intent.

Step 6: Receive Incorporation Certificate (INC-16)

  • MCA grants Certificate + PAN/TAN within 15–20 days.

Managing Donations & Compliance

  • Donations:
    • Domestic: No restrictions.
    • Foreign: Require FCRA registration (after 3 years of operation).
  • Tax Benefits:
    • Section 12AA: Income tax exemption (applies within 1 year of incorporation).
    • Section 80G: Donors claim a 50% tax deduction on contributions (renew by March 2025).

*CA Vakeel handles 12AA/80G applications and FCRA compliance.*

Ongoing Legal Obligations

Content:

  • Annual Filings: Financial statements (AOC-4) + annual returns (MGT-7).
  • Director KYC: Form DIR-3 KYC yearly.
  • GST Registration: Mandatory if turnover >₹20 lakh.
  • Statutory Registers: Maintain member/director records.
  • Changes Approval: ROC/government nod needed for MOA/AOA amendments.

*Penalties: ₹1,000/day for delayed filings.

Your Partner for Social Impact

CA Vakeel delivers: End-to-End Registration: DSC to INC-16 certificate. MOA/AOA Drafting: Mission-aligned clauses for compliance. Tax Exemption Support: 12AA + 80G applications. FCRA Advisory: Foreign donation compliance. Annual Compliance Package: Filings, registers, amendments.

*Transparent pricing • 30-day registration guarantee • Free post-incorporation consultation.*

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