How to Register a Section 8 Company Online in India

How to Register a Section 8 Company Online in India

The digital revolution has transformed many aspects of business and governance in India, and company registration is no exception. The online registration process for a Section 8 Company in India has simplified the procedure, making it more accessible for aspiring entrepreneurs and philanthropists. In this blog post, we will provide a step-by-step guide on how to register a Section 8 Company online.

What is a Section 8 Company?

A Section 8 Company, as per the Companies Act, 2013, is a non-profit organization established with the primary objective of promoting arts, commerce, science, research, education, sports, social welfare, religion, charity, and protection of the environment or any other charitable purpose. Unlike other types of companies, the profits generated by a Section 8 Company are reinvested for promoting its objectives, and no dividends are distributed to its members.

Advantages of Section 8 Company Registration

1. Tax Benefits: Section 8 Companies enjoy various tax exemptions under the Income Tax Act, 1961.
2. Limited Liability: Members have limited liability, ensuring the safety of personal assets.
3. Perpetual Succession: The company continues to exist even if its members change.
4. Credibility: Registration under the Companies Act enhances the credibility and trustworthiness of the organization.

Step-by-Step Guide to Online Registration of Section 8 Company

Step 1: Obtain Digital Signature Certificate (DSC)

• Purpose: For signing the electronic incorporation documents.
• Procedure: Apply for a DSC for the proposed directors of the company through a certified agency.

Step 2: Obtain Director Identification Number (DIN)

• Purpose: Unique identification number for directors.
• Procedure: Apply for DIN for the proposed directors through the Ministry of Corporate Affairs (MCA) portal.

Step 3: Name Approval

• Purpose: To reserve a unique name for the company.
• Procedure: Apply for name approval through the MCA's RUN (Reserve Unique Name) web service. Ensure the name reflects the charitable objectives of the company and is not similar to any existing company or trademark.

Step 4: Prepare and Submit Documents

• Purpose: To provide necessary information and declarations.
• Documents Required:
  • Memorandum of Association (MOA)
  • Articles of Association (AOA)
  • Declaration by Directors
  • Affidavits and declarations as prescribed
  • Other necessary documents
• Procedure: Prepare the required documents as per the prescribed format and submit them through the MCA portal.

Step 5: Pay Registration Fees

• Purpose: To cover the cost of registration.
• Procedure: Pay the requisite registration fees online through the MCA portal. The fee structure depends on the authorized capital of the company.

Step 6: Certificate of Incorporation

• Purpose: Confirmation of company formation.
• Procedure: Upon successful verification of documents and payment of fees, the Registrar of Companies (ROC) will issue the Certificate of Incorporation.

Step 7: Apply for PAN and TAN

• Purpose: Tax registration.
• Procedure: After obtaining the Certificate of Incorporation, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the Section 8 Company.

Also Read: Definition of NGO And its Role in Civil Society

Registering a Section 8 Company online in India is a systematic and straightforward process, thanks to the digital initiatives by the government. By following the steps mentioned above and ensuring compliance with the regulatory requirements, you can establish a non-profit organization that aims to make a positive impact on society. Whether you are passionate about education, healthcare, environment, or any other charitable cause, a Section 8 Company provides a robust legal framework to realize your philanthropic objectives. So, don't wait any longer—embark on your journey to make a difference today!