Section 8 Company Registration establishes corporations for non-profit endeavors under the Companies Act 2013. It supports various causes like education, social welfare, and more. Eligibility requires a focus on non-profit goals, a minimum number of directors, and no profit distribution among members.
Brief About Section 8 Company Registration
Non-profit Company Registration under Companies Act 2013 in Delhi
A Section 8 Company is a type of corporation established to promote non-profit activities, such as education, social welfare, environment preservation, arts, sports, charity, and more. This follows the provisions of the Companies Act 2013.
The essential purpose of registering a Section 8 Company is to encourage non-profitable goals, including but not limited to trade, arts, commerce, education, charity, environmental protection, sports research, and social welfare.
| Eligibility Criteria | ||
|---|---|---|
| i | Purpose Restriction | Section 8 company should only be formed for fulfilling the object of the promotion of commerce, art, science, sports, education, religion, research, charity, social welfare or any such other object. |
| ii | Director and Member Requirements | Two directors are required if the Section 8 company is to be incorporated as a private limited company, and a minimum of three directors in case of incorporation as a public limited company. The maximum number of members is 200 in the case of a private limited company, whereas for a public limited company, there is no such limit. |
| iii | Indian Resident Director | There must be at least one director who should be a resident of India in the Section 8 company. |
| iv | Non-profit Distribution | No profit should be distributed among the members and directors of the company directly or indirectly. |
Key Benefits of Section 8 Company Registration in Delhi
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- Limited Liability
Members, directors, and officers of Section 8 companies enjoy limited liability, shielding them from personal financial liability in case of debts or legal obligations incurred by the organization. This encourages participation and investment without the fear of personal risk. - Perpetual Succession
Section 8 companies have perpetual succession, meaning they continue to exist regardless of changes in membership or leadership. This provides stability and ensures continuity in pursuing the organization’s charitable or social objectives. - Tax Exemptions
Section 8 companies are eligible for tax exemptions on income generated from their charitable or social activities under Section 12AA of the Income Tax Act, 1961. Additionally, donors to such organizations may benefit from tax deductions under Section 80G of the Income Tax Act. - Access to Funding
Being registered under the Companies Act lends credibility to Section 8 companies, making them more attractive to donors, philanthropists, and institutional funders. They can also access various grants, subsidies, and government schemes earmarked for non-profit entities.
Your Guide to Compliance and Business Success in MSME Sector
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Step 1
Director Identification Number (DIN) Acquisition
Obtain a DSC of the proposed Directors of the Section 8 Company. Once a DSC is received, file Form DIR-3 with the ROC for getting a DIN. The Proof of Identity and Address Proof needs to be attached for obtaining DSC.
Step 2
DIN Allotment Confirmation
Once the DIR-3 is approved, the ROC will allot a DIN to the proposed directors.
Step 3
License Application Submission
File Form INC-12 with the ROC to apply for a licence for the Section 8 company along with the attachment of the required documents as mentioned above.
Step 4
Section 8 License Issuance
Once the form is approved, a license under section 8 will be issued in Form INC 16.
Step 5
Incorporation Application Filing
After obtaining the license, file the SPICe+ Form with the ROC for incorporation along with the required attachments as mentioned above.
Step 6
Certificate of Incorporation Acquisition
If the ROC is satisfied with the forms submitted, he issues a Certificate of Incorporation along with a unique Company Identification Number (CIN).
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Documents required for Section 8 Company Registration in Delhi
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
- Articles of Association (AOA) and Memorandum of Association (MOA)
- Declaration by the first director(s) and subscriber(s) (an affidavit is not required)
- Proof of office address, such as a copy of utility bills like electricity, water, or gas bill
Consent of Nominee (INC-3) - Residential and identity proof of nominees and subscribers
- Applicant’s identity and residential proof
- Digital Signature Certificate (DSC)
Documents required for Section 8 Company Registration in Delhi
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
