Section 8 Company Registration Online: How To Go About It

section 8 company registration online in india for charitable and social purposes, and other not-for-profit activities is among the most efficient and legally viable ways of achieving that goal. It is described in the Companies Act of 2013, and is formed to promote commerce, the arts, education, research, charity, environmental conservation and other related activities without profit-making objectives. All the profits are not distributed among the members, instead, they are invested back to achieve the companymission.

At Lawgical India, we focus in ensuring Section 8 company registration online is done without delay, and in a simple and straightforward way for the social entrepreneurs, charitable entities, and NGOS. Starting from the benefits and Company Section 8 registration eligibility, this blog covers all the important aspects and solutions to the most asked questions related to the registration process.

What is a Section 8 Company?

A not-for-profit company formed under the Companies Act of 2013 is a Section 8 Company. This type of company is different from other business organizations, the primary aim is not profit, but pursuing social and philanthropic goals.

Prominent aspects entail:

·       Any generated profit and revenue is used for charitable purposes.

·       No dividends are offered to the members.

·       A business with greater legal recognition than trusts and societies.

·       Limited liability exposure for its members.

This structural form is widely supported among charities, research institutions, and foundations and NGOs for its legal reputation and credibility.

Why Select Online Registration for Section 8 Companies? 

In the past, section 8 company registration relied on extensive paperwork, but the MCA Digital Initiative has streamlined the registration procedure. Organizations opt for this form of registration due to the following reason. 

1.       Recognition Across the Country - Unlike societies and trusts, a Section 8 Company has legal recognition all over India and does not have to worry about varying restrictions in different states. 

2.       Exemption from Tax - Companies of this nature can avail of various exemptions provided in the Income Tax Act, such as 80G and 12A registration. 

3.       FCRA for Foreign Donations - Section 8 Companies can apply for FCRA registration, thus easing the process of obtaining foreign funds. 

4.       Enhanced Trust from Stakeholders – Unlike other companies, a Section 8 Company is likely to gain the trust of its stakeholders and donors easily due to the high compliance and transparency standard expected from them. 

5.       Registration procedure online- MCA's digital platform allows for the entire registration procedure to be completed online, eliminating the requirement for physical paperwork.

Eligibility Criteria for Section 8 Company

To apply, the applicant must fulfill the following criteria:

·       Members: A minimum of 2 members and 2 directors (who can be the same people).

·       Purpose: The primary purpose must be for a charitable or for the benefit of the community.

·       Company Name: The name must be in accordance to the MCA and must reflect the company’s not for profit activities.

·       Capital Requirement: No minimum capital.

Documents Required for Section 8 Company Registration

To register the company online, you are required to upload:

1.       PAN card and Aadhaar card of directors and members.

2.       Passport size photographs.

3.       Current address proof (latest utility bill or bank statement)

4.       Registered office proof address (rent agreement or ownership document).

5.       Landlord NOC (No Objection Certificate) if the property is rented.

6.       MOA and AOA.

Step by Step Process for Section 8 Company Registration Online

Lawgical India has worked to make the entire process as simple and transparent as possible. Here’s what to expect.

1.       Obtain Digital Signature Certificates (DSC) – Each of the directors will be required to sign documents electronically so must acquire a DSC.2. Director Identification Number (DIN) – Fill out the SPICe+ form to request the DIN from the relevant authority.

2.       Name Approval – Apply to the Incorporating Ministry and request to approve the name to which they will provide the service named RUN ‘Reserve Unique Name.’ The name will serve the objectives of the company.

3.       Drafting MOA & AOA – Take the step of filing the company’s Memorandum of Association and Articles of Association.

4.       Filing SPICe+ Form – The Incorporation form must be submitted along with the relevant documents in the MCA portal.

5.       License under Section 8 – The objectives and documents will be checked and verified to issue the appropriate objectives set. The relevant Director will provide the document.

6.       Certificate of Incorporation – The MCA now issues the Certificate of Incorporation, thus the company exists after the Certificate of Incorporation is granted and in effect supported. 

Benefits of section 8 company registration

·       Limited Liability – The personal properties of the members are safe from company’s debts. 

·       Separate Legal Entity – The company is registered under law as a different entity. 

·       Perpetual Succession – The company still exist even if the members change. 

·       Government Support – The company can receive numerous government grants and initiatives. 

·       Donor Confidence – The trust of donors or other financial institutions is easily acquired.

Why do you prefer Lawgical India with regard to the registration of a section 8 company?

The section 8 company registration is best guided by experts to minimize mistakes and delays. At Lawgical India we guarantee:

·       Vervel the company in section 8 company registration online.

·       Professionals with experience who understand MCA compliance

·       No surprise costs after the initial quote

·       MOA, AOA and other required documents filed and registered

·       Other than above, FCRA, post registration assistance including exemption compliance and tax management, FCRA registration, and compliance management

The ease of registration coupled with the online process makes achieving your foundation goals so much easier than in the past.

Conclusion

In India, a section 8 company registration online is the best option for individuals and groups seeking to establish a reputable non-profit organization.

A foundation, a charitable trust, or a new NGO can be launched with confidence, knowing our dedicated and highly skilled professionals will provide full support.

With Lawgical India, take the next step and streamline the registration process for section 8 companies with confidence.

Start with Lawgical India today and take steps to establish a non-profit organization.