All you need to know about Section 8 of companies act 2013

Section 8 company meaning it is a business registered with charitable purposes such as the advertising of arts, commerce, sports, science, education, protection of the environment, religion, charity, etc.
The charitable company is filed below Section 8 of the Companies Act, 2013, which provides its unique status due to its purposes. Compared to other kinds of companies, Section 8 companies enjoy several exceptions and relaxations.

Easy Process for Register Section 8 Company

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ABOUT

What is a Section 8 Company?

The term section 8 company applies to any company within the research, sports, charity, art, science, social welfare, education, religion, or environmental protection industries, provided it is operating as a charitable or a not-for-profit organization.In other words, the profits obtained by the company go towards enhancing their work. The Indian Companies Act, 2013 typically monitors a section 8 company.

While some people mix section 8 companies with Trusts, it’s essential to understand that even though the two may operate similarly, there is a significant difference that sets them apart – the company registration of a section 8 company comes under the Ministry of Corporate Affairs. In contrast, the company registration of a Trust comes below State Government regulations. 

Advantages of a Section 8 Company

If you’re pondering over whether to file the registration of the company as a section 8 company or a Trust, note that the former
has a range of advantages that you can benefit from. These include:

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Greater Credibility

There is no requirement to hold annual or Extra Ordinary Meeting. Only the resolution shall be communicated to the members.Only one Board Meeting is required to be done in each half of the calendar year. The provisions of Section 174 of the Companies Act, 2013 relating to quorum of meetings for Board is not applicable on OPC.

 
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Company Name

If you are not interested in the registration of a pvt. Ltd, then note that section 8 companies can be registered without the use of these words in the name.

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Easy registration process

Company registration in India can often be a tedious process, however this is not the case with section 8 companies. Company owners do not have to pay stamp duty or set aside a minimum paid-up capital. 

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Quick Registration

it can take as little as 30 days to register a company.

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Tax Deductions

Donors can enjoy tax deductions under u/s 12AA and u/s 80G of the Income Tax Act,which should make it easier to get stakeholders and donors involved. 

Registration Process Flow

With Pareek G, it is refreshingly simple to register your company online. Here’s what you need to do:

1-2 HOURS
Select Package

Start by selecting the appropriate one, fill out the required forms, or simply speak to our experts online for assistance.

2 WORKING DAYS
Get Your Name Approved

We will help you identify unique names, and get them approvedby filing the RUN form. 

 
2 WORKING DAYS
Fill the INC-13 form

We will fill INC-13 form which includes MOA and AOA.

1-2 HOURS
Obtain approval from the Central Government

We help you file the INC-12 form. Once this is approved, youwill obtain the section 8 company license. 

2 WORKING DAYS
Fill SPICe 32 form

This will conclude the process of company registration as asection 8 company 

DOCUMENTS REQUIRED

Minimum criteria

  • Minimum of two shareholders.
  • There must be a minimum of two Directors (Directors and shareholders can be the same person).
  • At least one of the Director shall be the resident in India.
  • There is No requirement of Minimum capital.

Documents for Directors

  • Self Attested Copy of Pan Card.
  • Self Attested copy of Aadhaar Card / Passport / Driving License / Voter Identity Card
  • Passport size photograph
  • Self Attested Copy of Telephone Bill / Mobile Bill
  • Self Attested Copy of Electricity Bill / Water Bill
  • Self Attested Copy of Bank Statement /Bank Passbook with the latest transaction

Document For Registered Office

  • No-Objection letter from the Owner of Address to use the
    address of the registered office of the Company.
  • Electricity Bill/Telephone Bill /Gas Bill/ Water Bill
    -To be signed by the of the Owner of Premises

PRICING

Basic Package

Save upto-10% cost on this package

₹ 14,999

(Inclusive All)

  • Name Search Report
  • Name approval in RUN (Reserve Your Unique Name)
  • DSC(2no) (Extra Dsc Per Director – Rs-1000)
  • Filing Spice Form
  • Issue of Incorporation certificate along with PAN & TAN
  • Include Government Fees & Stamp Duty for Authorized Capital Upto -1 Lakh except for the state of Punjab, MP and Kerala.
  • Msme Registration
  • Share Certificate (Soft Copy)
BUY NOW

Growth Package

Save upto-20% cost on this package

₹ 16,999

(Inclusive All)

  • Name Search Report
  • Name approval in RUN (Reserve Your Unique Name)
  • DSC(2no) (Extra Dsc Per Director – Rs-1000)
  • Filing Spice Form
  • Issue of Incorporation certificate along with PAN & TAN
  • Include Government Fees & Stamp Duty for Authorized Capital Upto -1 Lakh except for the state of Punjab, MP and Kerala.
  • Msme Registration
  • Share Certificate (Soft Copy)
  • GST Registration
  • Stamp and Company Seal
  • Bank – Current Account Opening
  • 10% Discount on Future Service
BUY NOW

Premium

Save upto-30% cost on this package

₹ 29,999

(Inclusive All)

    • Name Search Report
    • Name approval in RUN (Reserve Your Unique Name)
    • DSC(2no) (Extra Dsc Per Director – Rs-1000)
    • Filing Spice Form
    • Issue of Incorporation certificate along with PAN & TAN
    • Include Government Fees & Stamp Duty for Authorized Capital Upto -1 Lakh except for the state of Punjab, MP and Kerala.
    • Msme Registration
    • Share Certificate (Soft Copy)
    • GST Registration
    • Trademark Registration
    • 1month free GST filing
    • NDA
    • Guideline for Startup India Registration.
    • Stamp and Company Seal
    • Bank – Current Account Opening
    • 10% Discount on Future Service
BUY NOW

FAQs on Section 8 Company

A Section 8 company is a charitable or not-for-profit organization and is registered under the Indian Companies Act, 2013.
 
A section 8 company is regulated by the Central government, while a Trust falls under the purview of the state government. Due to this, section 8 companies are considered to be more credible, which makes it easier to attract donors.
There is no minimum capital required. It is up to the discretion of the shareholders and directors.
A section 8 company requires a minimum of two directors for company registration in India.
A section 8 company requires a minimum of two shareholders for company registration in India.
Individuals living outside India cannot form a section 8 company unless it is in partnership with an individual residing in India.
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a One Person Company,, if you are the sole owner of the company.
Yes. As per ‘rule 8(7) of the Companies (Incorporation) Rules, 2014’, for the Companies under ‘Section 8 of the Act’, the name should include the words like foundation.
 
Yes, a NRI or Foreign National can be a Director in a Section 8 Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident India.
 
Memorandum of association is the charter of the company and defines the scope of its activities.
 
An article of association of the company is a document that regulates the internal management of the company.
Incorporation of Section 8 Company can be done as a company limited by shares or by Guarantee (with or without share capital).
 
Below are some of the listed points:
• Better Credibility of the Companies.
• Avoid getting into any legal trouble
• To build trust amongst the customers.
• To avoid penalties.