Section 8 Company Registration in Bengaluru

Established under the Companies Act of 2013, a Section 8 company in India is a non-profit organization focused on promoting commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection. This type of business structure does not aim to generate profits, which means that the income of a non-profit organization cannot be distributed as dividends to its members. Instead, all income must be utilized for advancing its charitable objectives.

• Tax Exemptions:Section 8 companies based in Bengaluru can avail of tax exemptions under various sections of the Income Tax Act, provided they meet the eligibility criteria. These exemptions reduce the tax burden on the company and encourage donations by allowing donors to claim tax deductions.
• No Minimum Capital Requirement:Unlike other forms of companies, there is no minimum capital requirement for registering a Section 8 company. This offers flexibility and makes registering easier for startups or small NGOs.
• Exemptions and Operational Benefits:Section 8 companies benefit from several legal and procedural relaxations under the Companies Act.
• Separate Legal Entity: Upon registration, a Section 8 company attains a distinct legal identity. This means it can own assets, enter into contracts, sue, or be sued independently of its members.
• Limited Liability: Members and directors of a Section 8 company enjoy limited liability, meaning they are only liable up to their shareholding or guarantee amount.
• Non-Profit Objective: Section 8 companies are formed with a clear non-profit motive, primarily to promote activities that benefit society rather than provide personal or commercial gain.
• Prohibition on Profit Distribution: One of the defining characteristics of a Section 8 company is that any profits or income generated must be strictly reinvested into achieving the organization's objectives.
• High Credibility:Due to their regulation by the MCA and mandatory financial reporting, Section 8 companies are generally considered more credible than societies or trusts.
• High Compliance Requirements: Though a non-profit, a Section 8 company must adhere to strict compliance norms under the Companies Act, 2013, including maintaining annual filings, board meetings, audits, and regulatory disclosures.

• Private Limited Section 8 Company
• Public Limited Section 8 Company

• PAN card
• Aadhaar card
• Passport size photo
• Estimated Income & Expenditure proof
• Identity/address proof of directors and subscribers
• Proof of registered office

1. Obtain a Digital Signature Certificate (DSC)

   • Section 8 company registration process in Bengaluru requires all proposed directors and subscribers to acquire a Digital Signature Certificate (DSC). This is essential for signing electronic forms on the MCA portal. You can obtain a DSC from government-authorized certifying agencies like eMudhra, Sify, or others.

2. Apply for Director Identification Number (DIN)

   • A Director Identification Number (DIN) is mandatory for all individuals proposed to be company directors. When applying through the SPICe+ form during the incorporation process, the DIN is automatically allotted as part of the application.

3. Reserve a Company Name

   • Next, submit Form SPICe+ Part A to reserve your company name on the MCA portal. You can propose up to two names in order of preference. The name should reflect the non-profit nature of the organization and include terms like Foundation, Association, Society, Council, or Charities. It must not be identical to any existing company or violate naming guidelines in any case.

4. Draft MOA and AOA

   • Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) for Section 8 company registration online in Bengaluru. The MOA should clearly define the charitable objectives of the company, while the AOA outlines its governance structure and internal rules. Both documents must align with the not-for-profit nature of the organization.

5. File SPICe+ Part B with Attachments

   • Now, proceed to file SPICe+ Part B, and all required attachments on the MCA portal. Important documents such as Form INC-9, AGILE-PRO, and INC-12 must be included.

6. Receive License and Certificate of Incorporation

   • Once your application is verified, the Regional Director will issue the license under Section 8. Upon approval, the Registrar of Companies will issue the Certificate of Incorporation and the Company Identification Number. The PAN and TAN are also auto-generated by the MCA portal in coordination with the Income Tax Department.