Guide to Section 8 Company Registration in India from Licit 360's blog

If you’re passionate about promoting education, charity, or other social causes, registering a Section 8 company in India could be your ideal pathway. Known for its not-for-profit nature, a Section 8 company provides a formal structure to engage in philanthropic activities while enjoying tax exemptions. At Licit360 , we specialize in simplifying the registration process to help your vision take flight and give the best legal services in India .

A Section 8 company is a legal entity established under the Companies Act, 2013, with the primary objective of promoting fields like:

• Education

• Science

• Arts

• Sports

• Charity

• Environmental protection

Unlike other companies, a Section 8 company does not distribute its profits to its members. Instead, all earnings are reinvested to further its objectives.

1. Tax Benefits: Section 8 companies are eligible for various tax exemptions under the Income Tax Act.

2. Credibility: Registration enhances credibility, especially when dealing with donors and government agencies.

3. Limited Liability: Members enjoy limited liability protection.

4. Exemption from Stamp Duty: No stamp duty is required during incorporation.

5. Ease of Fundraising: A formal structure makes it easier to attract funds from donors and international organizations.

Every director must acquire a Digital Signature Certificate to sign electronic forms during the registration process.

All proposed directors must obtain a DIN by filing Form DIR-3 on the MCA portal.

Submit a name approval application using the RUN (Reserve Unique Name) facility on the MCA portal. Ensure the name reflects the company’s objectives.

These documents must clearly outline the company’s mission, objectives, and operational guidelines.

Apply for a license to operate as a Section 8 company by filing Form INC-12 along with supporting documents, including:

• MoA and AoA

• Directors’ and subscribers’ declarations

• Financial projections for three years

• Identity and address proof of directors

Once the application is approved, the Registrar of Companies (RoC) issues the Certificate of Incorporation along with the license under Section 8.

Navigating legal procedures can be daunting, but with Licit360 you’re in safe hands. Here’s why clients trust us:

• Expert Guidance: Our team of professionals ensures compliance with all regulatory requirements.

• Transparent Process: No hidden charges; just honest advice and prompt services.

• Tailored Solutions: We understand that each client’s needs are unique, and we customize our services accordingly.

1. Can a Section 8 company make a profit? Yes, but the profit must be reinvested in the company’s objectives and cannot be distributed as dividends.

2. What is the minimum number of directors required? A Section 8 company requires at least two directors.

3. Is an office address mandatory for registration? Yes, a registered office address is mandatory and must be supported by valid address proof.

Turn your vision into reality with the help of Licit360 . Contact us to learn more about Section 8 company registration and how we can assist you in bringing positive change to society.