A company established under Section 8 of the Companies Act, 2013 is one

• which pertains to one established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’,
• the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.

A Section 8 Company is one registered for charitable or not-for-profit purposes.

A Section 8 Company is similar to a Trust or Society except a section 8 Company is registered under the Central Government’s Ministry of Corporate Affairs whereas Trusts and Societies are registered under State Government regulations. They have various comparative advantages like higher creditability amongst donors, Government departments and other stakeholders and better legal standing

HOW WE CAN HELP YOU TO START

• We will help you get your Digital Signature (DSC) and Director identification Number (DIN) for all directors (two/three)
• We will then help you pick a unique name using RUN (Reserve Unique Name) with MCA (Ministry of Company Affairs)
• We will help you draft the company MoA (Memorandum of Association) and AoA (Articles of Association)
• We will complete the SPICe form (Simplified Proforma for Incorporating Company Electronically)
• We will send in a request to the NSDL for company PAN & TAN

DOCUMENTS REQUIRED

 Identity Proof of directors

• Self-attested scanned copy of PAN Card of directors
• Notarised passport copy for foreign nationals

 Address Proof of directors

• Passport / Driving license /Aadhaar card
• Electricity bill / Bank statement (less than 2 months old)

Registered Office Address Proof:

• Rental Agreement OR sale/registration deed (if owned)
• Copy of recent utility bill (electricity/water) or property tax receipt
• No objection certificate from landlord for use of property as registered office (for rented offices)

Incorporation Documents

• Signed Digital Signature Application (hard copy)
• Other incorporation digitally signed and uploaded as soft copies

WHAT YOU HAVE NOW

• DIN for all the directors
• Digital signature token for all directors
• MoA & AoA (Memorandum of Association & Articles of Association)
• Incorporation Certificate from MCA with CIN
• Company PAN card
• Company TAN number
• All supporting documents for opening bank account

SUPPORTING YOUR ON-GOING ACTIVITY

• We can maintain your accounts and give you periodic progress reports at end of every month
• We can file your TDS returns
• We can compile and file your income-tax returns
• We can help you with all other compliances with RBI and other regulatory authorities

KEY FEATURES OF SECTION 8 COMPANY

Registration

Section 8 Companies are registered under the Companies Act, 2013. Hence, the process for registration and certificate of incorporation for a Section 8 Company is issued by the Ministry of Corporate Affairs, Government of India.

Name

Section 8 Companies can be registered with names that contain words like Association, Foundation, Society, Council, Club, Charities, Institute, Academy, Organisation, Federation, Chamber of Commerce, Development and more.

Management

A Section 8 Company does not have the concept of Trustees and is managed by the Board of Directors based on the MOA and AOA of the Section 8 Company.

Profits

Like a private limited company, a Section 8 Company will also have revenue, expenses, profits and losses. However the profits can be used only for the charitable or not-for-profit purposes mentioned in the MOA.

Transferability

The management of a Section 8 Company can be easily transferred from one person to another by altering the changing the composition of Board of Directors. Section 8 Company can also be controlled by shareholders.

Uninterrupted Existence

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time.

Formation & Operations

• A minimum of two people are required to register a section 8 company in India.
• The Director needs to be over 18 years of age and must be a natural person. There are no limitations in terms of citizenship or residency. Therefore, even foreign nationals can be Directors in a Indian Section 8 Company.
• Identity proof and address proof is mandatory for all the proposed Directors of the Section 8 Company. PAN Card is mandatory for Indian Nationals.
• An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / industrial / residential where communication from the MCA will be received.
• In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
• A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Section 8 Company.
• Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
• 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.