Formation of Section 8 Company​

Overview of Section 8 Company

A Section 8 Company is a legal entity established under the Companies Act, 2013, dedicated to promoting charitable objectives such as education, social welfare, research, and protection of the environment. The registration of a Section 8 Company is overseen by the Ministry of Corporate Affairs (MCA), distinguishing it from other non-profit structures governed by state authorities. At E Accountax Manager, we specialize in the formation of Section 8 Companies, ensuring compliance with all legal requirements.

Key Feature of Section 8 Company

Understanding the critical aspects of Section 8 Company registration is essential for establishing your NGO successfully in India:

• Legal Compliance: Section 8 Companies must adhere to strict regulations under the Companies Act, 2013, including filing Income Tax returns with the Registrar of Companies (ROC), maintaining accurate books of accounts, and complying with GST and Income Tax Act requirements.

• Profit Utilization: Profits generated by a Section 8 Company must be used solely for its charitable objectives and cannot be distributed among shareholders or members.

• Government Approval: Any modifications to the company's Memorandum of Association (MoA) or Articles of Association (AoA) require prior approval from the government, ensuring the integrity of the company's objectives.

• Continuity and Recognition: Section 8 Companies, previously known as Section 25 Companies under the Companies Act of 1956, continue to be recognized under the current legal framework.

Why Choose Section 8 Company Registration in India?

Registering a Section 8 Company offers numerous benefits, including:

• Separate Legal Entity: As a separate legal entity, your Section 8 Company can own property, enter into contracts, and engage in legal actions in its name.

• Enhanced Credibility: Section 8 Companies are widely regarded as more credible and trustworthy due to their non-profit nature, attracting more support from donors and government agencies.

• Nil Stamp Duty: Enjoy the benefit of exemption from stamp duty on registration documents, reducing overall costs.

• No Minimum Capital Requirement: Section 8 Companies do not require a minimum paid-up capital, offering flexibility to adjust capital structure as needed.

• Tax Benefits: Donations received by a Section 8 Company can qualify for tax exemptions under Sections 12A and 80G of the Income Tax Act, making it easier to attract donations.

Requirement for Section 8 Company Registration

To register a Section 8 Company with E Accountax Manager, the following criteria must be met:

• Minimum Directors: At least two directors are required, with one being a resident of India.

• Charitable Objectives: The company must aim to advance fields such as education, science, art, sports, or social welfare.

• Non-Profit Structure: The company must operate with a non-profit motive, with no profits distributed among members.

• Flexible Capital Structure: No fixed minimum capital requirement, providing greater financial flexibility.

• Compliance with Companies Act: Directors and members must comply with all legal requirements under the Companies Act, 2013.

Documents Required for Section 8 Company Registration

The following documents are necessary for the registration process:

Director and Shareholder Documents:

• Passport-sized photographs.

• Copies of Voter ID, Aadhaar Card, or Driver’s License.

• Recent bank statement or utility bill for address proof.

Registered Office Proof:

• Latest electricity or water bill (within the last 2 months).

• Rent Agreement and NOC from the property owner if the office is rented.

Additional Documents:

• Memorandum of Association (MoA) and Articles of Association (AoA).

• Digital Signature Certificates (DSC).

• Relevant resolutions and declarations for any foreign entities or unregistered companies.

Annual Compliances for Section 8 Companies

After registration, Section 8 Companies must fulfill the following annual compliances:

• Mandatory Audits: Conduct and file audit reports.

• Financial Statements: Maintain and file financial statements in Form AOC-4.

• Board Meetings: Hold at least two board meetings annually.

• Annual Returns: File annual returns, including MGT-7 and other forms as required.

• Additional Registrations: Comply with additional requirements like 12AA and 80G registrations.

Why Choose E Accountax Manager?

• Expert Team: Over 250+ professionals guiding you through every step.

• Top-Rated Service: Highly rated by our clients with a 4.5* Google rating.

• 24/7 Support: Around-the-clock assistance to address your concerns.

• Efficient Process: A quick, easy, and entirely online process to get your Section 8 Company registered.