SECTION 8 COMPANY REGISTRATION IN AGRA - RUCHI DAWAR

Section 8 Company registration in India is a structured legal process under the Companies Act, 2013, designed for organizations pursuing charitable, social, educational, or non-profit objectives. It offers credibility, tax benefits, and strong governance compared to trusts or societies, but requires strict compliance with MCA regulations.

 

What is a Section 8 Company?

• A Section 8 Company is a non-profit entity registered under Section 8 of the Companies Act, 2013.
• Its primary objectives include charitable, educational, religious, social, cultural, environmental, or philanthropic activities.
• Profits cannot be distributed among members; they must be reinvested to further the company’s objectives.
• It is regulated by the Ministry of Corporate Affairs (MCA) and enjoys higher credibility with donors, government agencies, and international organizations compared to trusts or societies.

 

Benefits of Registering a Section 8 Company

• Legal recognition & credibility: Stronger governance structure than trusts/societies.
• Tax exemptions: Eligible for 12A and 80G registration under the Income Tax Act.
• Foreign funding: Easier compliance with FCRA (Foreign Contribution Regulation Act).
• Limited liability: Members’ liability is restricted to their share capital.
• Perpetual succession: The company continues despite changes in membership.

 

Step-by-Step Registration Procedure

1. Digital Signature Certificate (DSC)

• Obtain DSC for all proposed directors.
• Required for filing electronic forms with MCA.

2. Director Identification Number (DIN)

• Apply for DIN through Form DIR-3.
• Each director must have a unique DIN.

3. Name Approval

• File Form INC-1 or use the RUN (Reserve Unique Name) service.
• The name must include words like Foundation, Association, Society, Council, Charitable, etc.

4. Drafting MOA & AOA

• Memorandum of Association (MOA) and Articles of Association (AOA) must clearly state charitable objectives.
• MOA should align with Section 8 requirements.

5. Application for License

• File Form INC-12 with the Registrar of Companies (ROC).
• Attach MOA, AOA, declarations, and financial projections.
• ROC scrutinizes documents before granting a license under Section 8.

6. Certificate of Incorporation

• Once approved, ROC issues a Certificate of Incorporation with a Company Identification Number (CIN).
• The company is now legally recognized as a Section 8 Company.

 

Post-Registration Compliance

• Maintain proper books of accounts.
• Annual filings: File Form AOC-4 (financial statements) and MGT-7 (annual return).
• Board meetings: Conduct regular meetings as per Companies Act.
• Tax registrations: Apply for 12A & 80G exemptions.
• FCRA registration: Mandatory for foreign donations.

 

Comparison: Section 8 Company vs Trust vs Society

Feature	Section 8 Company	Trust	Society
Governing Law	Companies Act, 2013	Indian Trusts Act, 1882	Societies Registration Act, 1860
Authority	MCA (Central Govt.)	State Registrar	State Registrar
Credibility	High	Moderate	Moderate
Tax Benefits	12A & 80G	12A & 80G	12A & 80G
Foreign Funding (FCRA)	Easier	Moderate	Moderate
Compliance	Strict	Less strict	Moderate
Suitable For	Large NGOs, foundations	Family-run charities	Community-based NGOs