{"id":1476,"date":"2021-01-19T12:06:37","date_gmt":"2021-01-19T12:06:37","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=1476"},"modified":"2021-01-19T12:06:39","modified_gmt":"2021-01-19T12:06:39","slug":"rules-and-regulations-under-section-8-company-registration","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/","title":{"rendered":"All you need to know about Rules and Regulations under Section 8 Company Registration"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Section 8 Company is a company licensed under Section 8 of the Indian Companies Act, 2013. It is a non-profit organization that is formed to promote science, commerce, arts, education, sports, research and etc. The profit generated out of the operations of the company can be used to meet the objectives of the company. Section 8 Company registration is important and it is registered for social welfare, charity and achieving objectives of the organization towards the society at large. This article will discuss about all you need to know about rules and regulations under Section 8 company registration. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3b7b15b8045\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3b7b15b8045\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#Objective_of_Section_8_Company\" title=\"Objective of Section 8 Company \">Objective of Section 8 Company <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#Rules_and_Regulations_under_Section_8_Company_Registration\" title=\"Rules and Regulations under Section 8 Company Registration\">Rules and Regulations under Section 8 Company Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#Last_name_to_be_added_to_Section_8_Company\" title=\"Last name to be added to\nSection 8 Company\">Last name to be added to\nSection 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#What_are_the_documents_required_for_Section_8_Company_registration\" title=\"What are the documents required\nfor Section 8 Company registration?\">What are the documents required\nfor Section 8 Company registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#Eligibility_criteria_Rules_and_Regulations_under_Section_8_Company_registration\" title=\"Eligibility criteria: Rules and\nRegulations under Section 8 Company registration\">Eligibility criteria: Rules and\nRegulations under Section 8 Company registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#Statutory_Obligations_Rules_and_Regulations_under_Section_8_Company_registration\" title=\"Statutory Obligations: Rules\nand Regulations under Section 8 Company registration\">Statutory Obligations: Rules\nand Regulations under Section 8 Company registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#What_is_the_Advantages_of_Section_8_Company\" title=\"What is the Advantages of\nSection 8 Company? \">What is the Advantages of\nSection 8 Company? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/rules-and-regulations-under-section-8-company-registration\/#Conclusion\" title=\"Conclusion \">Conclusion <\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objective_of_Section_8_Company\"><\/span>Objective of Section 8 Company <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The objective of section 8 company is:<\/p>\n\n\n\n<ul><li>To\npromote the art, science, commerce, education, research, social welfare,\ncharity, religion sports, medical aid, financial assistance or appropriate\nprotection of business or legal environment. <\/li><li>The\nprofit gained from such activities to be used to promote the objectives of the\nbusiness organization or to achieve the goals of the organization. <\/li><li>No\nportion of the profit to be paid to the members of the company. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rules_and_Regulations_under_Section_8_Company_Registration\"><\/span>Rules and Regulations under Section 8 Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To register a Section 8 Company in India, following rules and regulations are required to be followed:<\/p>\n\n\n\n<ul><li>The applicant is required to fill an online form available on the official website. <\/li><li>Next, obtain a Digital Signature Certificate (DSC) along with the Director Identification Number (DIN) within three working days. <\/li><li>The applicant is required to apply for the Section 8 Company name approval from the Ministry of Corporate Affairs. <\/li><li>Further, apply for the Section 8 License from the Director of the Ministry of Corporate Affairs. <\/li><li>Once the Section 8 license is issued by the applicant, then a SPICe+ Form has to be filed for final incorporation with the Registrar of Companies. <\/li><li>The applicant is required to E- file PAN and TAN application. <\/li><li>The PAN card of the applicant shall be delivered through courier. <strong><a href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\" class=\"text-primary\">Section 8 Company registration<\/a><\/strong> shall be complete. <\/li><li>The applicant can open a bank account within 30 working days<\/li><li>The Section 8 Company is then required to apply for 80G and 12A registration with the Income Tax Department to get the benefit of exemption from paying tax. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Last_name_to_be_added_to_Section_8_Company\"><\/span>Last name to be added to\nSection 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the Rule 8 (7) of the Companies act, the companies under section 8 of the act shall include the words:<\/p>\n\n\n\n<ul><li>Chambers<\/li><li>Federation<\/li><li>Confederation<\/li><li>Electoral trust<\/li><li>Council<\/li><li>Forum<\/li><li>Association<\/li><\/ul>\n\n\n\n<p>Also, the central government can allow the Section 8 company to be registered as a limited company without using the words- \u2018Limited or Private Limited\u2019 to its name. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_documents_required_for_Section_8_Company_registration\"><\/span>What are the documents required\nfor Section 8 Company registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Identity Proof of the members of the company.<\/li><li>Passport size photograph.<\/li><li>List of the directors and promoters.<\/li><li>Address proof of the members.<\/li><li>If the property is on rent, Copy of rent agreement<\/li><li>No Objection Certificate (NOC) from the Landlord. <\/li><li>If the property is self-owned then the copy of the papers along with the electricity bill or water bill. <\/li><li>Signature of the members.<\/li><li>Memorandum of Association (MOA) and Articles of Association (AOA).<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_criteria_Rules_and_Regulations_under_Section_8_Company_registration\"><\/span>Eligibility criteria: Rules and\nRegulations under Section 8 Company registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The objective should be to promote social welfare, arts, education, science, commerce, sports, research, and financial assistance to the lower-income groups. <\/li><li>The entire surplus that is generated must be used for meeting the objectives of the company. <\/li><li>The profit generated should not be distributed between the members and directors of the company directly or indirectly. <\/li><li>Directors, members and founders of the company cannot withdraw any remuneration in any form, be it, in cash or kind. <\/li><li>The company must have a clear vision and project plan for the next <strong><em>3 years<\/em><\/strong>. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Statutory_Obligations_Rules_and_Regulations_under_Section_8_Company_registration\"><\/span>Statutory Obligations: Rules\nand Regulations under Section 8 Company registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The revenue and surplus generated from the operations of the company should exclusively be used for achieving the objectives of the company. <\/li><li>It is not mandatory to appoint a Company Secretary for the Section 8 Company. #<\/li><li>No incentives or commission is allowed in Section 8 Company. <\/li><li>There is no need to bring minimum share capital in a Section 8 Company. <\/li><li>The Directors of the company can take a position in more than 20 companies. <\/li><li>Annual General Meeting (AGM) can be conducted at a short period notice. <\/li><li>No portion of profits should be paid to the promoters or directors of the Section 8 Company. <\/li><li>The objective and purpose of Section 8 Company cannot be altered by the company without the prior permission of the Central Government of India. <\/li><li>The profit is 100% Tax-free if Section 8 Company has obtained<strong><a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/12a-and-80g-registration\"> 80G and 12A registration<\/a><\/strong> from the income tax department. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Advantages_of_Section_8_Company\"><\/span>What is the Advantages of\nSection 8 Company? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the advantages enjoyed by Section 8 Company are as follows:<\/p>\n\n\n\n<ul><li>Exemption from paying stamp duty. <\/li><li>Many privileged and exemptions under company law. <\/li><li>Donors of the company enjoy the benefit of tax exemption. <\/li><li>Section 8 Company can be incorporated without any share capital and the funds obtained are usually in the form of donations. <\/li><li>Shares of the Section 8 Company can be easily transferred. <\/li><li>Section 8 Company is exempted from keeping any suffix as titles. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 8 company is a non-profit organization which is formed to promote social welfare and for a charitable purpose. Its aim is to provide benefits and uplift the impoverished section of society. It works for the society. There is no profit sharing between the members of the Section 8 Company and the profits generated from the operations of the company are utilized for achieving the goals and objectives of the company. It is mandatory to follow all the rules and regulations under Section 8 company registration to get the company incorporated in India.<\/p>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/dissimilarities-between-trust-section-8-company-and-society\/\">What are the Dissimilarities between Trust, Section 8 Company &#038; Society?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section 8 Company is a company licensed under Section 8 of the Indian Companies Act, 2013. It is a non-profit organization that is formed to promote science, commerce, arts, education, sports, research and etc. The profit generated out of the operations of the company can be used to meet the objectives of the company. Section [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":1481,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[70],"tags":[192],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1476"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=1476"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1476\/revisions"}],"predecessor-version":[{"id":1484,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/1476\/revisions\/1484"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/1481"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=1476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=1476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=1476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}