Section 8 Company Registration
Ideal business structure for NGO’s and Non Profit Organizations
Starting At Rs. 25,250
SAVE 60% COST…!!!
(Takes < 20 days)
What is Section 8 Company Registration ?
Section 8 Company is named Section 8 of the Companies Act, 2013, which pertains to a established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided 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. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.
A Section 8 Company is similar to a Trust or Society; expect, a section 8 Company is registered under the Central Government’s Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments and other stakeholders.
Donations / Funding of NGO / NPO or Section 8 Company
Section 8 company are not allowed to raise funds by way of deposits but they can accept donations from the general public. Let us discuss the ways by which it can raise funding:
- Foreign Donations : Foreign donations are allowed only when FCRA registration has been taken. FCRA license can only be applied after three years from the date of registration. However, if it is really urgent to receive foreign donations, then you may apply for prior permission from commissioner.
Equity Funding : Section 8 company can also raise funding by issuing new equity shares at a higher value.
Domestic donations: There is no restriction on the domestic donations, however a proper check must be kept in order to avoid the money laundering cases.
Documents Required for Section 8 Company Registration
- Copy of PAN Card
- Aadhar Card
- Address Proof (Bank Statement, Mobile bill, Telephone bill)
- Passport Size Photo
For Registered Office
- Ownership Proof (Electricity Bill etc)
- Utility Bill (Gas Bill, Electricity Bill)
- NOC (Download format)
Procedure for Section 8 Company Registration
Factors to Consider in Section 8 Company Name Selection
The name of your Section 8 Company is very important. Your Section 8 Company’s name is the first impression to your buyers, suppliers and stakeholders. It should therefore be attractive, relevant and suggestive. There are several factors that you should keep in mind while choosing a name for your company.
Eligibility for Section 8 Company Registration
- Object must be Charitable or to promote arts, science, commerce etc
- Intends to apply all its profit in promoting the objectives
Assures the prohibiting of the payment of dividends to any of its members
Frequently Asked Questions
Indus can incorporate a section 8 Company in less than 20 days. The time taken also depends on relevant documents provided by the applicant and speed of approvals from government. To ensure speedy registration, please pick a unique name for the proposed Company and make sure you have all the required documents prior to starting the registration process.
The life span of the company is not dependent on or related to the life of any particular person(s) or individual(s). It could go on indefinitely until it accomplishes its objective, merges with another such company, or goes bankrupt.
Indus provides Section 8 Company incorporation services across India in all cities. We have done Section 8 company registration in Mumbai, Delhi, Gurgaon, Noida, Bangalore, Chennai, Hyderabad, Ahmedabad, Kolkata, Surat, Pune, Jaipur, Lucknow, Kanpur, Nagpur and other Indian cities.
Indus is one of the best online service portals to help register Section 8 Companies in India. We have 10 years of experience in application of Section 8 Company registration. Indus has 30+ regional offices in India and expand its network in India with 2000+ customers for Section 8 Company.