Section 8 Company Registration at just ₹12,000/- (inclusive of all fees).
Take the first step towards establishing your Non-Profit Organization with Track Tax for hassle-free registration!
A Section 8 Company is incorporated with the objective of promoting various social, charitable, and educational causes, such as commerce, art, science, research, sports, education, religion, environmental protection, and charity. The key distinction is that these companies apply their income solely towards achieving their objectives, prohibiting any distribution of profits as dividends to members. Section 8 Companies can be registered either as a Private or Public Company.
Unlike Trusts or Societies, which are registered under state regulations, Section 8 Companies are governed by the Ministry of Corporate Affairs (MCA) under central government regulation. This gives Section 8 Companies, also referred to as Non-Profit Organizations (NPOs), higher credibility with stakeholders, donors, and grant-making organizations.
At Track Tax, we simplify the process of registering a Section 8 Company, guiding you through the steps to ensure seamless compliance. Get in touch with our expert team for Section 8 (Foundation) company registration and compliance services. Reach us at +91 072407-51000 or email admin@tracktax.in for assistance.
Similar to companies, the liability of each partner in an LLP is limited to the capital they have contributed. This structure reduces the financial risk and safeguards the personal assets of the partners, providing a sense of security.
Donors contributing to a Section 8 Company enjoy significant tax benefits under Section 12A and Section 80G of the Income Tax Act, 1961, encouraging further charitable contributions and support.
There is no mandatory minimum capital required for setting up a Section 8 Company. The capital structure can be adjusted as needed with the company’s growth and expansion over time.
Section 8 Companies are eligible for numerous tax exemptions and rebates under the Income Tax Act, 1961, which is a considerable advantage for not-for-profit entities.
In addition to individuals, firms can also become members of a Section 8 Company by subscribing to its shares, expanding the scope for collaboration and partnership.
Section 8 Companies benefit from relatively fewer procedural compliances under the Companies Act, 2013, compared to other types of companies. However, they are still closely monitored to ensure adherence to regulatory standards.
At Track Tax, we specialize in assisting with Section 8 Company registration and ongoing compliance. Contact us for guidance on how to leverage these advantages and establish your not-for-profit organization successfully.
A Section 8 Company must have at least two directors, with a maximum limit of fifteen directors at any given time.
Digital Signature Certificates (DSC) are required for all subscribers and directors during the registration process for signing electronic forms.
All directors must have a valid Director Identification Number (DIN). If the directors do not already have a DIN, it can be obtained during the registration process.
The company's objective must be aligned with a non-profit purpose, such as charity, education, environmental protection, research, or social welfare.
A Section 8 Company requires at least two members to be incorporated.
No specific minimum capital requirement for a Section 8 Company. The capital structure can be determined based on the company's need
To incorporate a Nidhi Company, the following documents are required:
Identity Proof of the Member and Directors of the proposed Company; (Aadhar /Voter ID/Driving License/Passport)
Address Proof of the Members and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)
A recent passport-sized photograph of all members and directors is required.
Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
Business Address Proof Rented/leased: Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)
PAN Card of the Member and Directors of the proposed Company
Passport in case of Foreign Nationals
At Track Tax, we make this process efficient and hassle-free, providing end-to-end assistance for Section 8 Company registration.
Begin by filling out a simple questionnaire provided by the expert team at Track Tax. This form will help us gather essential information required for the registration process.
Once the questionnaire is completed, the necessary documents must be provided according to the responses. Our team will arrange and process these documents to ensure they meet all legal requirements.
The Digital Signature Certificate (DSC) is required for the e-signatures of the directors and members. If the DSC has not already been prepared, this process will take around 1-2 days.
The next step is to check the availability of the proposed company name. The name must be unique and not similar to any existing registered entity. This process usually takes 1-2 days.
After name approval, an online application is filed using the SPICE+ form along with the requisite documents. The Memorandum of Association (MOA) and Articles of Association (AOA) will be carefully drafted to align with the non-profit objectives of the Section 8 Company. This process takes approximately 2-3 days.
After the successful approval of the application, a Certificate of Incorporation and a Section 8 License will be issued via email, marking the official incorporation of the company.
When selecting the name for your Section-8 Company, it’s essential to ensure that the name reflects the nature of your non-profit objectives. You can check the availability of the company name by logging into the MCA portal, keeping in mind two or three potential names along with the activity type of your organization. The name should ideally include terms like Association, Society, Council, Club, Charities, Foundation, Academy, Institute, Organization, or Federation to align with the non-profit objectives.
At Track Tax, our expert team will assist you in selecting an appropriate name for your company. We also check for trademark registration to ensure the name or logo you propose isn’t already registered, making your application more powerful. If you’d like to secure a trademark for your brand or logo, we can assist you with the trademark registration process.
If the proposed Director already has a DIN (Director Identification Number), it’s essential to verify whether DIR-3 KYC has been completed. Our team at Track Tax can assist in verifying this, and if not done, we can help complete the process.
Section-8 Companies can register under Section 12AA to claim tax exemptions. Additionally, under Section 80G, donors are eligible for tax exemptions when filing their income tax returns. The registration under 80G/12AA can be applied for after three years of incorporation.
A Section-8 Company is prohibited from distributing dividends to its members, ensuring that all profits or income are directed toward promoting the company’s non-profit objectives.
Section-8 Companies are not permitted to raise capital through deposits but can receive donations from the general public. Foreign donations are also allowed, but the company must comply with the regulations outlined in the FCRA (Foreign Contribution Regulation Act), which mandates that the company be at least three years old to qualify for FCRA registration.
Track Tax provides comprehensive support to help you navigate the regulations and successfully register and manage your Section-8 Company.
| S. No. | Basis | Section-8 | Trust | Society |
| 1. | Governed by | Companies Act, 2013 | Indian Trust Act, 1882 | Societies Registration Act, 1860 |
| 2. | Registration Document | The charter documents are MOA and Articles of Association | The main document is the Trust Deed | The Primary instrument for Registration of society its Memorandum of Society. |
| 3. | Minimum Requirement | Section-8 Company requires at least two people. | At least two trustees are required. | At least seven members are required to form an society. |
| 4. | Revocable/Irrevocable | It can be dissolved in accordance with the provisions of the Companies Act, 2013 and rules made there under | Public Trust are generally irrevocable | Society can be dissolved which shall be approved by at least 3/4 of the Members of the society. |
| 5. | Control | It is managed by the Board of Directors and resolutions are passed in accordance with the Companies Act, 2013 | Single man may control and prevail in a trust. | Decisions are democratically taken in societies |
| 6. | Area of operation | It can operate all over India | It can operate all over India | It can operate in the specific state only. |
| 7. | Bank Account Operations | Here, a person can be authorized to operate a Bank Account. | In trust it is controlled by one person mostly trustee | In case of society Bank operations are operated generally by the President and the treasurer. |
| 8. | Annual Compliance | Annual Accounts and return of Company are filed with ROC. | There is no requirement of annual filing, but the data has to be provided to the concerned department as per prescribed formats. | Societies are required to file annually with the Registrar of societies, a list of containing name. address and occupation of the managing committee members. |
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