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SECTION 8 COMPANY REGISTRATION


A section 8 company which earlier was known as section 25 company is a legal form for non profit organizations (NPO) or Non Governmental organizations (NGO). Section 8 company is licensed company which is authorized to work anywhere in the country.

Section 8 company is suitable for non-profit objective and it may a private limited or a public limited company. As per law in case the proposed section 8 company is a private limited then minimum two promoters is required, however in case it is a public limited section 8 company then minimum 7 person must be the promoters of the company. A ‘Section 8 Company’ is eligible for certain exemptions from provisions of law and a concessional rate of fees. The process of incorporation of a section 8 company is similar to that of any other company registration in India with an additional requirement of seeking a prior license from the central government under section 8 of the companies act, 2013.

Section 8 company registration process requires at-least 7 people to start with. Further, there is no limit for initial capital and hence, it may be started with Rs.10,000.

  BENEFITS OF SECTION 8 COMPANY


  • No minimum capital requirement
  • Income Tax exemption
  • Best form to start your NGO/NPO
  • Can accept donations

  SERVICE INCLUDES


  • Name Application Through RUN (Reserve Unique Name)
  • License For Section 8 Company
  • Digital Signature of Directors
  • DIN No Application
  • PAN & TAN
  • Drafting MOA & AOA
  • Incorporation Through Spice Forms
  • Share Certificates to Founder
  • Bank A/c Opening Guidance
  • Certificate of Commencement of Business

  DOCUMENTS REQUIRED


For Directors/Shareholders :


  • Passport size photos of directors
  • Address proof of directors ( Any one of electricity bill or bank statement or landline bill or mobile bill )
  • Self declaration about your directorship in other companies
  • Aadhaar card of directors
  • PAN card of Directors

For Registered Office :


  • Rent agreement / Electricity bill of your registered office
  • No objection certificate from the owner

  PROCESS


  FAQ (Frequently Asked Questions)


Section 8 company can be registered for many social factors like -
Education
Poverty
Disease
Blood bank
Environment protection
Other objects for general public utility
Yes, section 8 company is more costly than the simple trust registration. Section 8 company requires Central Government approval and many other additional requirements to start with.
On the other hand, the trust registration is done at the local SDM office and generally takes Rs.6000 to register. However, Section 8 company is more authentic and offers more satisfaction and trust to the general public.
There is no minimum capital requirement for Section 8 Company in India. If you are planning to register a section 8 Company, then you don’t need to worry about the capital required.
Yes, Foreign Direct Investment is allowed Section 8 Companies subject to the compliance of FEMA Regulations. However, in terms of the Foreign Contribution (Regulation) Act, 2010 [FCRA] read with the Frequently asked questions (FAQ) on the website of the ministry of the home of the union government of India, the infusion of capital in a section 8 company is a foreign contribution. In simple words, though FDI in section 8 companies is permissible, as the same is considered as a Foreign Contribution in terms of FCRA, it can be infused only with prior permission/registration from the central government.
  
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