Section 8 Company Registration in India:
Empower Your Social Impact with Musecorp Legal Solutions.
Hassle-free registration: Our experts handle everything, from name approval to getting your Certificate of Incorporation.
At Musecorp Legal Solutions, we understand the unique aspirations of organizations driven by social impact. Our mission is to simplify the legal complexities of Section 8 company registration so you can focus on what truly matters – creating positive change. Our expert team specializes in guiding non-profit organizations through the incorporation process, ensuring compliance and empowering you to make a meaningful difference.
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What is a Section 8 Company?
A Section 8 Company, as defined under the Companies Act, 2013, is a legal entity specifically designed for non-profit organizations (NPOs). These companies are formed to promote charitable causes, such as art, science, education, research, social welfare, religion, charity, environmental protection, and other similar objectives. Unlike for-profit companies, Section 8 Companies are prohibited from distributing dividends to their members and must reinvest any profits or income back into the organization to further its mission.
We help you decide the best option
Types of NGOs in India
Starting a non-profit organization in India? One of the crucial first steps is selecting the appropriate legal structure to establish your organization’s foundation. Each structure comes with its own advantages and considerations, and the right choice depends on your specific needs and goals.
1. Section 8 Company
Ideal for:
Organizations seeking a formal and credible structure, with limited liability protection for its members. Eligible for tax benefits and foreign funding.
Key Points:
- Registered under the Companies Act, 2013
- Strong legal standing and credibility
- More stringent regulatory compliance requirements
2. Society
Ideal for:
Organizations prioritizing ease of formation and operation with fewer compliance formalities.
Key Points:
- Registered under the Societies Registration Act, 1860
- Less formal structure with easier operational procedures
- Members may have unlimited liability
3. Trust
Ideal for:
Organizations valuing flexibility in structure and operations, and personalized decision-making.
Key Points:
- Formed under the Indian Trusts Act, 1882
- High degree of flexibility and autonomy
- Trustees may have unlimited liability
A Detailed Comparison To Help you Decide
Section 8 Company, Society, or Trust: Choosing the Ideal Legal Structure for Your Non-Profit
| Feature | Section 8 Company | Society | Trust |
|---|---|---|---|
| Legal Status | Separate legal entity | Separate legal entity | Not a separate legal entity |
| Liability of Members | Limited | Unlimited | Unlimited |
| Perpetual Existence | Yes | Yes | Depends on trust deed |
| Management | Board of Directors | Governing Council | Board of Trustees |
| Foreign Funding | Allowed (with FCRA registration) | Allowed (with FCRA registration) | Allowed (with FCRA registration) |
| Tax Benefits | Yes | Yes | Yes |
| Compliance Requirements | More stringent | Less stringent | Less stringent |
Which Structure is Right for You?
Consider these factors when making your decision:
- Purpose: What are the primary objectives and activities of your organization?
- Liability: How important is it to protect the personal assets of your members?
- Compliance: What level of regulatory oversight are you comfortable with?
- Credibility: How important is a formal and recognized legal structure to your stakeholders?
Let Us Help You
Decide!
At Musecorp Legal Solutions, we understand that choosing the right legal structure can be a complex process. Our team of experts can guide you through the different options, assess your unique needs, and help you make an informed decision that sets your non-profit up for success.
Contact us today to discuss your vision and explore the best legal pathway for your non-profit organization in India.
For Any Doubts or Queries:
Call +91 8447277497
Why Choose a Section 8 Company?
A Section 8 Company, also known as a Non-Profit Organization (NPO), is a legal structure designed for organizations with charitable objectives. It offers distinct advantages:
Credibility and Trust:
Establishes your organization as a legitimate entity dedicated to social welfare, enhancing trust among donors and beneficiaries.
Perpetual Existence
Ensures the continuity of your organization's work, even with changes in leadership.
Tax Benefits
Enjoy exemptions and deductions under the Income Tax Act, making it easier to allocate resources to your mission.
Foreign Funding
Eligible to receive foreign contributions under the Foreign Contribution Regulation Act (FCRA), subject to compliance.
Separate Legal Entity
Protects your personal assets from the organization's liabilities.
Exemptions and Privileges
Section 8 Companies enjoy certain exemptions under the Companies Act, 2013, reducing compliance burdens.
Why Choose Musecorp for Your NGO Registration?
Specialization in Section 8 Companies
We have extensive experience and expertise in registering Section 8 Companies, understanding the unique needs and challenges of non-profit organizations.
Streamlined Process for NGOs
We navigate the intricacies of the registration process efficiently, ensuring a smooth and hassle-free experience tailored to your organization's specific requirements.
Commitment to Social Impact
We are passionate about supporting organizations that drive positive social change, aligning our values with those of our clients.
Transparent and Affordable Pricing
Our fees are competitive and transparent, with no hidden costs. We offer customized packages to fit your budget and requirements.
Post-Registration Support for NGOs
We provide ongoing support services tailored to the unique compliance needs of Section 8 Companies, such as assistance with FCRA registration and compliance with CSR regulations.
Your Section 8 Company Registration Journey with Musecorp
- Free Expert Consultation: We begin with a complimentary consultation to understand your organization’s mission, vision, and activities to determine the best approach for registration.
- Name Reservation: Our team assists you in selecting a unique and legally compliant name for your company. We conduct comprehensive searches to avoid conflicts with existing companies or trademarks and then utilize the RUN (Reserve Unique Name) service to secure your chosen name.
- Document Preparation and Filing: Our legal experts meticulously prepare all the necessary documents, including the Memorandum of Association (MoA) and Articles of Association (AoA), ensuring they reflect your charitable objectives and comply with regulations. We then file these documents electronically through the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) platform, streamlining the process and minimizing paperwork.
- DIN Acquisition: We help you obtain Director Identification Numbers (DIN) for all the directors of your company through the SPICe+ form.
- DSC Procurement: As an official partner of e-Mudhra, we facilitate the acquisition of Digital Signature Certificates (DSC), ensuring a secure and efficient process.
- Government Approval: We diligently track your application and ensure all requirements are met for swift government approval.
- License Issuance: Upon approval, you will receive a license from the Central Government, officially registering your Section 8 Company.
Throughout the entire process, our team is dedicated to providing you with expert guidance, transparent communication, and personalized support. We leverage our experience and knowledge to ensure a hassle-free and successful company registration experience, allowing you to focus on building and growing your business.
NGO Registration Made Easy: We Handle the Complexities
- SPICe+ PART A: Reserving your company name.
- SPICe+ PART B: Incorporating your company and applying for DIN allotment, PAN/TAN allocation, etc.
- RUN: Reserving a unique name or changing an existing company name (if needed).
- e-MoA (INC-33): Electronic Memorandum of Association.
- e-AoA (INC-31): Electronic Articles of Association.
- INC-9: Declaration by subscribers and first directors (if applicable).
- AGILE-PRO-S: Applying for GSTIN, ESIC, EPFO registration, professional tax registration, bank account opening, and Shops and Establishment registration (for Delhi).
- Other Relevant Forms: We handle any additional forms required based on your specific circumstances.
For Any Doubts or Queries: Call +91 8447277497
Documents Required
Documents Required for Section 8 Company Registration
Essential Documents for Section 8 Company Registration
- Proof of Identity and Address: PAN card, Aadhaar card, passport, voter ID, driver’s license, or utility bills for all directors and members.
- Proof of Registered Office Address: Recent utility bills (not older than two months), rent agreement, or property ownership documents.
- Digital Signature Certificate (DSC): For authorized signatories to sign electronic documents.
- Declaration by Professionals: A declaration from a practicing professional (Advocate, Chartered Accountant, Cost Accountant, or Company Secretary) certifying compliance with Section 8 requirements.
- Estimate of Income and Expenditure: A projection of your organization’s income and expenses for the next three years.
Basic Requirements for Section 8 Company Registration
Requirements for Name of Section 8 Company
The name of your Section 8 Company must include words like “Foundation,” “Association,” “Federation,” “Council,” etc., to indicate its non-profit nature. It should not violate any existing trademarks or be misleading in any way.
Who Can Register a Section 8 Company?
Any person or association of persons can register a Section 8 Company, provided they meet the eligibility criteria and comply with the legal requirements. This includes individuals, groups of individuals, existing companies, and even foreign companies.
Time Required for Formation
The time required for Section 8 Company registration can vary depending on the complexity of the application and government processing times. However, with Musecorp’s expertise and streamlined process, we strive to complete the registration within a reasonable timeframe.
Pricing for Section 8 NGO Company Registration
Basic
Plan
INR 7,999
Ideal for: Startups and small businesses with basic registration needs.
Inclusions:
- DIN for 2 Directors
- MOA
- AOA
- Certificate of Incorporation
- PAN
- TAN
- EPFO and ESIC Registration *
- 2 Digital Signature Certificates (Class 3) From E-mudhra
Professional
Plan
INR 11,999
Ideal for businesses seeking comprehensive support.
Inclusions:
- DIN for 2 Directors
- MOA
- AOA
- Certificate of Incorporation
- PAN
- TAN
- EPFO and ESIC Registration *
- 2 Digital Signature Certificates (Class 3) From E-mudhra
Custom Plan
Tailor your company registration to your exact needs.
Choose the services you require, and we’ll provide a personalized quote.
Contact us today for a free consultation and a personalized quote tailored to your specific requirements.
Get in Touch
+91 8448277497
The line is open 24/7, 365 days a year.
FAQ Section
Have Questions? We've Got Answers!
Q: Can a foreign company register as a Section 8 Company in India?
A: No, a foreign company cannot directly register as a Section 8 Company. However, a foreign company can establish a subsidiary in India and register it as a Section 8 Company, subject to compliance with the Companies Act and Foreign Contribution (Regulation) Act (FCRA).
Q: Can a Section 8 Company be converted into a different type of company?
Q: What are the consequences of non-compliance with Section 8 regulations?
Q: How does Musecorp ensure the confidentiality of my information?
Q: What if an applicant for allotment of Director Identification Number (DIN) has been identified as a potential duplicate in SPICe+?
Q: Is registration for Profession Tax through SPICe+ mandatory all over India?
Q: Is it mandatory for newly registered companies to open a Bank Account?
A: All new companies incorporated through SPICe+ (w.e.f 23rd February 2020) would also be mandatorily required to apply for opening the company’s Bank account through the AGILE-PRO-S linked web form.
Q: Whether a Section 8 Company can contain Micro Finance/Credit words in its name or object at the time of incorporation?
A: No.
Q: Whether filing INC-12 is mandatory to incorporate Section 8/Part I Section 8 Company?
A: No, as substituted by the Companies (Incorporation) Amendment Rules, 2020 w.e.f. 15th February, 2020, license for Section 8/ Part I Section 8 Company shall be issued through SPICe+ form. Form INC-12 shall not be filed for obtaining a license for a new Section 8 company.
Q: Which words are mandatorily to be used in the name of section 8 Company?
A: The proposed name of Section 8 company shall include any one of the words i.e. Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, etc.
Have more questions? Contact us today for a free consultation and personalized assistance.
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See Why Businesses Trust Musecorp for Company Registration
About Musecorp Legal Solutions Private Limited
Musecorp Legal Solutions is your trusted partner for navigating the complexities of Indian company law. We are a team of experienced legal professionals (CA and CS) dedicated to providing efficient, affordable, and personalized solutions for businesses of all sizes. Our mission is to empower entrepreneurs and businesses to achieve their goals by simplifying legal processes and ensuring compliance.
Our Expertise
We specialize in a wide range of legal and business services, including:
- Private Limited Company Registration
- Limited Liability Partnership (LLP) Registration
- One Person Company (OPC) Registration
- Section 8 Company (NGO) Registration
- Trademark Registration
- GST Registration & Filing
- Accounting and Bookkeeping
- Legal Documentation
- Compliance Management
Our Commitment
We are committed to providing our clients with the highest level of service and support. We understand that every business is unique, and we tailor our solutions to meet your specific needs. Our transparent pricing and dedication to client satisfaction set us apart.
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Shashank Sachan
Director