Section 8

Section 8 Company is a specific legal structure in India, governed by Section 8 of the Companies Act, 2013. It is a type of non-profit organization (NPO) that is formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other charitable purpose. The key feature of a Section 8 Company is that it is established for promoting charitable objectives, and any profits generated are used for promoting those objectives. Here's an overview of the documentation required to establish a Section 8 Company in India:

Documentation for Section 8 Company:

Memorandum of Association (MOA): Draft a memorandum of association outlining the objectives of the Section 8 Company. This should clearly state that the profits or any income generated will be utilized solely for the promotion of charitable objectives.

Articles of Association (AOA): Prepare articles of association detailing the rules and regulations for the internal functioning of the Section 8 Company. This includes information on the management structure, meetings, voting rights, and other operational aspects.

Name Approval: Choose a unique name for the Section 8 Company and apply for name availability through the Ministry of Corporate Affairs (MCA) portal.

Declaration by Promoters: Obtain a declaration from the promoters confirming their intention to establish the Section 8 Company for charitable purposes and not for profit.

Director Identification Number (DIN) and Digital Signature Certificate (DSC):Obtain DIN for the proposed directors by filing Form DIR-3 online.

Obtain DSC for the proposed directors to digitally sign incorporation documents.

Address Proof and Identity Proof: Provide identity and address proofs of the proposed directors, such as Aadhaar card, Passport, Voter ID, etc.

Registered Office Proof: Submit proof of the registered office address, such as a utility bill or rental agreement.

Statement of Affairs: Prepare a statement of affairs disclosing the assets and liabilities of the company.

Board Resolution: Pass a board resolution approving the incorporation of the Section 8 Company and authorizing directors to act on behalf of the company.

Declaration of Compliance: File a declaration of compliance confirming that all requirements of the Companies Act for the incorporation of a Section 8 Company have been met.

License from the Charity Commissioner (if applicable): In some states, a license from the Charity Commissioner may be required for a Section 8 Company. This requirement varies, so it's important to check the local regulations.

Registration Process:

Application Filing: File an application for the incorporation of the Section 8 Company (Form INC-32) online through the MCA portal, providing the required details and attaching necessary documents.

Certificate of Incorporation: Upon successful processing and verification, the Registrar of Companies (RoC) will issue the Certificate of Incorporation, confirming the establishment of the Section 8 Company.

Apply for PAN and TAN: Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the newly incorporated Section 8 Company.

12A and 80G Registration (if seeking tax benefits): Apply for 12A registration for income tax exemption for the Section 8 Company. Additionally, apply for 80G registration to provide tax benefits to donors.