Section 8 Company Registration

Section 8 Company Registration Registration in India - An Overview

YOU CAN NOW REGISTER A Section 8 Company IN INDIA AT JUST RS. 9,999 (ALL INCLUSIVE)*

Check out details with the procedure for registration of section 8 with companies Act, 2013

The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc. To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company. In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013. The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders. A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.

Why register Section 8 Company - Benefits

The following are the advantages of incorporating a Section 8 company over other modes of registering an NGO:

  • It has organised operations and greater flexibility.
  • Avoids meticulous registration process and no physical presence required.
  • No requirement of a minimum paid-up capital.
  • Seamless procurement of tax benefits under section 12AA and 80G of the Income Tax Act.
  • Any partnership firm can be a member in its individual capacity.
  • Can be registered with only 2 members as against the requirement of 7 persons for registration of the society.
  • More creditworthiness and goodwill as it is registered with the Central Government of India.
  • No other NGO can be registered in India with a similar name.
  • All filings including the filing of the balance sheet with ROC and other activities such as name change, office address change or all other kinds of change is done online.
  • Most preferred from the point of view of grants by Government.
  • Most preferred from the point of view of CSR funding.
  • Easy to transfer ownership in comparison to trust and societies.
  • Can be verified online on the website of the Government.
  • Voting rights are in percentage and hence only 1 person can hold 99.99% voting rights and thus it is easy to take policy decisions.
  • It is a national level NGO.
  • It can be converted into a normal Private Limited or Public Limited Company anytime.

    • Checklist for Registering a Section 8 Company in India

    As defined under the Companies Act 2013, we have to ensure the requirements of the following checklist

    Two Directors

    A private limited company must have at least two directors and at most, there can be 15 directors. Among all the directors in the company, at least one must be a resident of India. A private limited company can also be registered with only 1 director but that is called one person company (OPC).

    Unique Name

    The name of your business must be unique. The suggested name should not match with any existing companies or trademarks in India.

    Minimum Capital Contribution

    There is no minimum capital amount for a company. A company can be registered even with a capital of Rs. 1,000/-

    Registered Office

    The registered office of a company does not have to be a commercial space. Even a rented home can be the registered office.