If you're looking to start a non-profit organization in India, Section 8 company registration is the ideal choice. A Section 8 company is similar to a trust or society but offers more credibility and recognition. Here, I'll guide you through the process of registering a Section 8 company, with insights from Deeksha Khurana, a renowned tax consultant at Taxlegit.

What is a Section 8 Company?

A section 8 company registration is formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or any other useful object. These companies do not distribute profits to their members. Instead, they reinvest the earnings to further their objectives.

Steps to Register a Section 8 Company

1. Obtain DSC and DIN

First, get a Digital Signature Certificate (DSC) for the proposed directors. Then, apply for Director Identification Number (DIN). This step is essential for signing documents electronically.

2. Name Approval

Choose a unique name for your company and get it approved by the Ministry of Corporate Affairs (MCA). Make sure the name aligns with the objectives of your company.

3. Drafting Memorandum and Articles of Association

Draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents outline the company's objectives and the rules governing its operation.

4. File Form INC-12

Fill out Form INC-12 to apply for a license under Section 8. Attach the MOA, AOA, a declaration by professionals, and other required documents.

5. Obtain License

Once the application is reviewed and approved, the MCA will issue a license under Section 8. This license signifies that the company is authorized to operate as a non-profit organization.

6. Incorporation

After obtaining the license, file SPICe Form (INC-32) along with the license to complete the incorporation process. Attach the necessary documents like MOA, AOA, and a declaration by the directors.

7. PAN and TAN

Apply for PAN and TAN for your company. These are crucial for all financial transactions and compliance.

8. Bank Account

Open a bank account in the name of your company. You'll need this for all financial transactions and funding purposes.

Benefits of Section 8 Company

1. Credibility: Section 8 companies have higher credibility compared to trusts and societies.

2. Tax Benefits: These companies are eligible for various tax exemptions.

3. Startup India Certificate: Section 8 companies can also avail benefits under the Startup India initiative.

Why Choose Taxlegit for Section 8 Company Registration?

At Taxlegit, Deeksha Khurana and her team provide the best Section 8 company registration services. They handle all the paperwork and ensure a smooth registration process. Their expertise also extends to sole proprietorship registration and obtaining a Startup India certificate.

Common Queries

What is the cost of registering a Section 8 company?

The cost can vary based on professional fees and other charges. Consulting with Taxlegit can give you a clear estimate.

How long does it take to register a Section 8 company?

The process typically takes 15-20 days, depending on the approval from MCA.

Can a Section 8 company convert into a private limited company?

No, a Section 8 company cannot convert into a private limited company due to its non-profit nature.

Conclusion

Registering a Section 8 company is a straightforward process when guided by experts like Deeksha Khurana from Taxlegit. With proper documentation and compliance, you can start your non-profit organization and contribute to society effectively. For more information on Section 8 company registration, sole proprietorship registration, or obtaining a Startup India certificate, contact Taxlegit. They provide comprehensive support to ensure your venture is set up seamlessly.