Section 8 Company

Thirdeyed: Your Partner in Section 8 Company Registration

Introduction:
A Section 8 Company, as defined by the Companies Act, 2013, is a non-profit organization aiming to promote charitable activities, arts, science, education, and sports. At Thirdeyed, we offer end-to-end services for hassle-free Section 8 company registration in India. Our expert team ensures a smooth and efficient process, enabling you to establish your non-profit entity quickly. Contact us today for professional Section 8 company registration services.

Definition of Section 8 Company:
According to the Companies Act, 2013, a Section 8 company is an organization dedicated to promoting various activities for social welfare. These activities include arts, commerce, science, research, education, sports, charity, social welfare, religion, environmental protection, or similar objectives. Section 8 companies utilize their profits solely for mission fulfillment and do not distribute dividends to members.

Overview of Section 8 Company Registration:
A Section 8 Company is a corporate entity established to promote non-profit activities such as education, social welfare, environmental preservation, arts, sports, and more. This is in line with the provisions of the Companies Act, 2013. Key points to note:

• Minimum of two directors required.
• No minimum paid-up capital requirement.
• Utilizes profits for charitable objectives.
• No distribution of profits among shareholders.
• Similar to the erstwhile Section 25 Company under the Company Act, 1956.
• Mandatory compliance with the Companies Act, 2013, GST, and IT Act.

Benefits of Opening a Section 8 Company:
Incorporating a Section 8 company in India offers several advantages:

1. Tax Exemption: Eligible for 100% tax exemption under section 12AA of the Income Tax Act.
2. No Minimum Capital Requirement: Flexibility in adjusting capital structure.
3. Separate Legal Entity: Perpetual existence and separate legal identity.
4. Increased Credibility: Stringent legal compliance enhances trustworthiness.
5. No Title Required: Free to choose a name without the term “Section 8” affixed.

Eligibility Criteria for Incorporation:
To establish a Section 8 company in India, specific eligibility criteria must be met:

1. An Indian national or Hindu Undivided Family (HUF) can incorporate.
2. Requires at least one director.
3. Primary objective should be related to promoting social welfare activities.

Mandatory Legal Requirements for Section 8 Company:
Before applying for Section 8 company incorporation, fulfill these legal requisites:

1. Number of Directors: Minimum of two for private limited, minimum of three for public limited.
2. Number of Members: Capped at 200 for private limited, no limit for public limited.
3. Capital Requirement and Name: No minimum paid-up capital, no requirement to affix terms like private limited.
4. Company Objects: Objectives must align with non-profit goals and profit utilization for charitable purposes.

Documents Required for Section 8 Company Incorporation:
Essential documents needed for Section 8 company incorporation:

1. Articles of Association (AOA) and Memorandum of Association (MOA).
2. Declaration by the first director(s) and subscriber(s).
3. Proof of office address.
4. Certificate of incorporation (COI) of an overseas corporate body (if any).
5. Resolution passed by the promoter company.
6. Consent of Nominee (INC-3).
7. Residential and identity proof of nominees and subscribers.
8. Applicant’s identity and residential proof.
9. Digital Signature Certificate (DSC).
10. Declaration of unregistered companies.

Section 8 Company Incorporation Process:
The process involves the following steps:

1. Obtain Digital Signature Certificate (DSC):

• Form: DIR-3, DSC.

1. Obtain Director Identification Number (DIN):

• Form: DIR-3.

1. Reserve the Company Name:

• Form: INC-1.

1. File the Application for Incorporation:

• Forms: INC-32, MOA, AOA.

1. Obtain a License for Section 8 Company:

• Form: INC-12.

1. Obtain a Certificate of Incorporation:

• Form: INC-16.

Donations/Funding of Section 8 Company:

• Cannot collect capital through deposits.
• Accepts donations from the public.
• Methods include foreign donations, equity funding, and domestic donations.

Streamlining Section 8 Company Registration with Thirdeyed:
Thirdeyed is your trusted partner for seamless Section 8 company registration in India. With our expertise and user-friendly online platform, we simplify the complex registration process. Our dedicated team ensures compliance with all legal formalities, guiding you through documentation to approval. Contact us now to initiate your Section 8 company registration journey.