{"id":8887,"date":"2020-02-10T11:12:30","date_gmt":"2020-02-10T05:42:30","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=8887"},"modified":"2020-12-17T14:48:52","modified_gmt":"2020-12-17T09:18:52","slug":"procedure-for-section-8-company-registration","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/","title":{"rendered":"A Complete Procedure for Section 8 Company Registration"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The act of humanity has become a thing of the past. Nowadays, everyone is busy watering their dreams with an urge to earn more money. In such a materialistic world, Section 8 Companies seems to be an absolute blessing. Unlike, other organization of the corporate realm, Section 8 Company is the one that solely works for social welfare.&nbsp; If you also seek to establish a Section 8 Company and serve the nation, then it is essential to meet some criteria. This write-up will guide you about <strong><a href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\" class=\"text-primary\"><em>Section 8 Company Registration Procedure<\/em><\/a><\/strong>, eligibility, documentation and other related attributes.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-background\" href=\"https:\/\/swaritadvisors.com\/section-8-company-registration\" style=\"background-color:#0071a1\">Section 8 Company Registration &#8211; Register Not For Profit Entity<\/a><\/div>\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-6a3abde726da7\" 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-6a3abde726da7\"  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\/learning\/procedure-for-section-8-company-registration\/#A_brief_about_Section_8_Company\" title=\"A brief about Section 8 Company\">A brief about 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\/learning\/procedure-for-section-8-company-registration\/#Eligibility_criteria_to_register_a_Section_8_Company\" title=\"Eligibility criteria to register a Section 8 Company\">Eligibility criteria to register a Section 8 Company<\/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\/learning\/procedure-for-section-8-company-registration\/#Documents_Required_for_Section_8_Company_Registration\" title=\"Documents Required for Section 8 Company Registration\">Documents Required for 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-4\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Reasons_to_carry_Section_8_Company_Registration\" title=\"Reasons to carry Section 8 Company Registration\">Reasons to carry Section 8 Company Registration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#No_Minimum_Capital_Requirement\" title=\"No Minimum Capital Requirement\">No Minimum Capital Requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Immune_from_any_Title\" title=\"Immune from any Title\">Immune from any Title<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Zero_Stamp_Duty\" title=\"Zero Stamp Duty\">Zero Stamp Duty<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#A_Separate_Legal_Entity\" title=\"A Separate Legal Entity\">A Separate Legal Entity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Tax_Exemptions\" title=\"Tax Exemptions\">Tax Exemptions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Procedure_for_Section_8_Company_Registration\" title=\"Procedure for Section 8 Company Registration\">Procedure for Section 8 Company Registration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Attain_DSC_and_file_Form_DIR-3\" title=\"Attain DSC and file Form DIR-3\">Attain DSC and file Form DIR-3<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Allotment_of_DIN\" title=\"Allotment of DIN \">Allotment of DIN <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#File_INC_for_name_approval\" title=\"File INC for name approval\">File INC for name approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#File_Form_INC-12_for_grant_of_Section_8_License\" title=\"File Form INC-12 for grant of Section 8 License\">File Form INC-12 for grant of Section 8 License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#Issuance_of_Section_8_Company_License\" title=\"Issuance of Section 8 Company License\">Issuance of Section 8 Company License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-section-8-company-registration\/#File_SPICe_Form_with_the_ROC\" title=\"File SPICe Form with the ROC\">File SPICe Form with the ROC<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/learning\/procedure-for-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=\"A_brief_about_Section_8_Company\"><\/span>A brief about Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Companies Act, 2013 defines Section 8 Company as an organization that predominantly aims to promote the fields of Art, Education, Sports, Social Welfare, Commerce, Research, Charity, Environment, Science, Religion and other similar objects. Such companies are one of the most popular <strong><a href=\"https:\/\/swaritadvisors.com\/ngo-registration\" class=\"text-primary\">NGO\u2019s<\/a><\/strong> in India. The members of a Section 8 Company do not get a fair share of the company\u2019s profit; instead, it is only utilized to foster the original objective.<\/p>\n\n\n\n<p>These companies share similar characteristics of a Trust or a Society except that the Central Government conducts surveillance of Section 8 Company under Ministry of Corporate Affairs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_criteria_to_register_a_Section_8_Company\"><\/span>Eligibility criteria to register a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Here is the list of things that you must comply with before undertaking the Section 8 Company Registration procedure:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Minimum two shareholders are required to form a Section 8 Company;<\/li><li>Also, it must have at least two Directors (both Directors and shareholders can be the same in the case of Section 8 Company);<\/li><li>One of the Directors should be a resident of India for at least 182 days;<\/li><li>There is no minimum capital requirement for Section 8 Company Registration;<\/li><li>It is mandatory to possess PAN if the Section 8 applicant is an Indian.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_for_Section_8_Company_Registration\"><\/span>Documents Required for Section 8 Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The checklist of documents that an applicant must attach along with Section 8 Company Registration Form:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Identity proof of all Promoters or Directors (a self-attested copy of their PAN Card)<\/li><li>Residential proof of all the Directors or Promoters such Aadhar Card, Driving License, Voter ID, etc.<\/li><li>Utility Bill\/ Electricity of the Registered Office<\/li><li>Address proof of the Registered Office like Rent Agreement, Letter of Possession or Lease Agreement &nbsp;<\/li><li>Passport-size photograph of Directors<\/li><li>Memorandum of Association (MOA)<\/li><li>Articles of Association (AOA)<\/li><li>DIR-2 Form to act as Director<\/li><li>If the Director has previously served his part in any other company, then he must provide the details of being his Director previously<\/li><li>INC-9 declaration by Directors<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_to_carry_Section_8_Company_Registration\"><\/span>Reasons to carry Section 8 Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Following are the benefits of Section 8 Company registration procedure:<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"No_Minimum_Capital_Requirement\"><\/span>No Minimum Capital Requirement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The biggest advantage of setting a Section 8 Company is that it does not require any minimum capital, unlike other Limited Companies like One person, Public or Private. Moreover, the members of a Section 8 Company can directly access funds from public donations or subscriptions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Immune_from_any_Title\"><\/span>Immune from any Title<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Section 8 Companies do not have to add \u2018limited\u2019 in the suffix of its name. Thus, these companies can function without notifying the public about their limited liability status.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Zero_Stamp_Duty\"><\/span>Zero Stamp Duty<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Section 8 Companies are free of the Stamp Duty payment that Private or Public Limited companies pay during Registration.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Separate_Legal_Entity\"><\/span>A Separate Legal Entity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies registered under Section 8 have a distinct legal entity. It implies that such a company will keep on existing even after the death or insolvency of its members.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Exemptions\"><\/span>Tax Exemptions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Being a non-profit organization, Section 8 Companies avails the tax exemption. These companies also leverage several other tax benefits, deductions under Section 80G of Income Tax Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Section_8_Company_Registration\"><\/span>Procedure for Section 8 Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>The process of Section 8 Company Registration is demonstrated below:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Attain Digital Signature Certificate and File Form DIR-3<\/li><li>Allotment of DIN<\/li><li>File INC for Name Approval<\/li><li>File Form INC-12 for Grant of Section 8 License<\/li><li>Issuance of Section 8 Company License<\/li><li>File SPICe Form with ROC<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Attain_DSC_and_file_Form_DIR-3\"><\/span>Attain DSC and file Form DIR-3<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The first step for Section 8 Company incorporation is to attain a Digital Signature Certificate (DSC) of all the proposed Directors. Therefore file Form DIR-3 with the Registrar of Companies to obtain Director Identification Number (DIN). Attach ID and Address proof along with the form.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Allotment_of_DIN\"><\/span>Allotment of DIN <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If the Registrar of Companies (ROC) approves the validity of the provided information, it will then offer DIN to the proposed Directors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_INC_for_name_approval\"><\/span>File INC for name approval<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Name is the identity of a company so now you need to file a RUN Form name approval with the ROC. The applicant must propose at least two names in the preferential order. Therefore, the ROC will approve one of the names based on the availability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_Form_INC-12_for_grant_of_Section_8_License\"><\/span>File Form INC-12 for grant of Section 8 License<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>Once the name of the company gets approved, it\u2019s time to file Form INC-12 with Registrar of Companies. It is an application for the permit of operations as a Section 8 Company. Affix the documents given below with Form INC-12:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Memorandum of Association (MOA) &amp; Articles of Association (AOA);<\/li><li>Declaration attested by a practising Chartered Accountant;<\/li><li>A declaration from each member filing the application;<\/li><li>Evaluated income and expenditure of the succeeding three years.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issuance_of_Section_8_Company_License\"><\/span>Issuance of Section 8 Company License<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After an extensive examination of the documents and form, ROC will give approval if it finds it to be valid and authentic. Thus, ROC will issue Section 8 Company License in Form INC-16.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_SPICe_Form_with_the_ROC\"><\/span>File SPICe Form with the ROC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><em>Lastly, file SPICe INC-32 with ROC for Section 8 Company incorporation and attach the prescribed documents such as:<\/em><\/strong><\/p>\n\n\n\n<ul><li>An affidavit from every Director\/Promoter;<\/li><li>KYC and Consent Letter of each Director;<\/li><li>Form DIR-2 with ID and Address proof;<\/li><li>Utility bills as a proof of Registered Office (it must not be older than two months);<\/li><li>No Objection Certificate (NOC) from the landlord in case the office premise is on rent;<\/li><li>MOA &amp; AOA;<\/li><li>Declaration in regards to deposits;<\/li><\/ul>\n\n\n\n<p>If the Registrar of Companies affirms to the documentation, he will issue a Certification of Incorporation and grant a unique Corporate Identity Number to the newly formed Section 8 Company.<\/p>\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 Registration is a lengthy procedure that takes about 15-20 days. Since a layman cannot draft the documentation singlehandedly, it is wise to seek professional assistance from a legal firm.<\/p>\n\n\n\n<p>One such reputed legal consultant is Swarit Advisors. We provide end-to-end assistance in Section 8 Company Registration.&nbsp; &nbsp;<\/p>\n\n\n\n<div class=\"shadow6\"><strong>Read our Articles:<\/strong><ul><li><a href=\"https:\/\/swaritadvisors.com\/learning\/tax-exemption-to-section-8-company\/\">Tax Exemption to Section 8 Company<\/a><\/li><li><a href=\"https:\/\/swaritadvisors.com\/learning\/what-are-the-advantages-and-disadvantages-of-section-8-company\/\">Advantages and Disadvantages of Section 8 Company<\/a><\/li><\/ul><\/div>\n\n\n\n<p><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/how-to-check-society-registration-online\/\">How to check Society Registration online?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The act of humanity has become a thing of the past. Nowadays, everyone is busy watering their dreams with an urge to earn more money. In such a materialistic world, Section 8 Companies seems to be an absolute blessing. Unlike, other organization of the corporate realm, Section 8 Company is the one that solely works [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":8888,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[101,492],"tags":[842],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8887"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=8887"}],"version-history":[{"count":16,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8887\/revisions"}],"predecessor-version":[{"id":17948,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/8887\/revisions\/17948"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/8888"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=8887"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=8887"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=8887"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}