A Section 8 Company is a special type of non-profit organization registered under the Companies Act, 2013, to promote charitable objectives such as social welfare, education, arts, science, sports, and environmental protection. Unlike other businesses, these companies do not distribute profits among members but reinvest them into their objectives.

Key Features of a Section 8 Company

• Non-Profit Objective – It must be formed for charitable, educational, scientific, or similar purposes.
• No Minimum Capital Requirement – There is no mandatory minimum capital, making it a cost-effective structure.
• Limited Liability – Members’ liabilities are limited, protecting personal assets.
• Exemption from “Limited” Name Requirement – Unlike other companies, it is not required to use “Private Limited” or “Limited” in its name.

Step-by-Step Registration Process

Step 1: Obtain Digital Signature Certificate (DSC)

Since company registration is an online process, all directors must obtain a Class 3 DSC, which is used for electronically signing the application.

Step 2: Apply for Director Identification Number (DIN)

A DIN is a unique number assigned to each director. It can be applied for via SPICe+ (Form INC-32) at the time of incorporation.

Step 3: Name Approval through RUN (Reserve Unique Name)

• A unique company name must be selected and approved by the Ministry of Corporate Affairs (MCA).
• The name should reflect the company’s charitable purpose.
• The name cannot be identical to an existing company or trademark.

Step 4: Draft the Memorandum (MOA) & Articles of Association (AOA)

• MOA defines the objectives and purpose of the company.
• AOA outlines internal rules, management structure, and governance policies.

Step 5: File SPICe+ Form for Incorporation

The SPICe+ (INC-32) form is used for company incorporation. It includes:

• SPICe+ Part A: Name reservation
• SPICe+ Part B: Incorporation, PAN, TAN, GST registration (if applicable)

Along with this, INC-12 (application for a license under Section 8) must be filed with the MCA.

Step 6: License Approval from the MCA

• The MCA verifies the application and grants a license under Section 8 of the Companies Act, 2013.
• This license allows the company to operate as a non-profit entity.

Step 7: Certificate of Incorporation (COI)

Upon approval, the Certificate of Incorporation (COI) is issued, confirming the company’s legal existence. The Corporate Identification Number (CIN) is also allocated.

Step 8: Post-Incorporation Compliance

After registration, the following steps must be completed:

• Open a bank account in the company’s name.
• Apply for 80G and 12A registration under the Income Tax Act to avail of tax benefits.
• Maintain proper accounting records and conduct annual audits.

Required Documents for Section 8 Company Registration

1. Directors’ Documents:

   • PAN Card and Aadhaar Card
   • Passport (for foreign nationals or NRIs)
   • Address Proof (Utility Bill/Bank Statement)
   • Passport-size photographs
   • DSC and DIN

2. Company Documents:

   • MOA & AOA
   • Declaration in Form INC-14 & INC-15 (stating compliance with legal provisions)
   • Address Proof of the Registered Office
   • NOC from the property owner (if applicable)

How ASK ASSOCIATES Simplifies Section 8 Company Registration

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