Section 8 Company Registration in Delhi

Established under the Companies Act 2013, A Section 8 company in India is a non-profit organization that aims to promote commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection. This business structure does not intend to make any profits hence, the income of an NPO cannot be used for paying out dividends to the company's members and has to be for the promotion of charitable objectives.

• 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.
• Governance by the Board of Directors: Regular board meetings, adherence to corporate governance principles, and statutory compliance requirements help maintain transparency and accountability.
• 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.
• Tax Exemptions:Section 8 companies based in Delhi can apply for tax exemptions under Sections 12A and 80G of the Income Tax Act. 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, Section 8 companies do not require a minimum paid-up capital. This feature makes it especially accessible for small organizations, non-profits, and NGOs to register and begin operations without the burden of initial capital.
• Exemptions and Operational Benefits:Section 8 companies benefit from several legal and procedural relaxations under the Companies Act.

• 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)

   • To begin with section 8 company registration in Delhi, all directors and subscribers need a DSC to sign online forms. To obtain a DSC, apply through government-approved agencies like eMudhra, Sify, etc.

2. Apply for Director Identification Number (DIN)

   • DIN is required for proposed directors of section 8 company registration online in Delhi. If you apply during incorporation, DIN is already included in the SPICe+ form.

3. Name Reservation

   • Propose two names in order of preference for the Section 8 company in Delhi using Form SPICe+ Part A on the MCA portal. It must include words like Foundation, Association, Society, Council, Charities, etc, and must not be undesirable or too similar to existing names.

4. Draft MOA & AOA

   • Prepare a Memorandum of Association (MOA) that outlines the Section 8 company’s objectives and Articles of Association (AOA) to define rules and regulations for Section 8 companies. These must reflect the non-profit purpose of the company.

5. File SPICe+ Part B

   • You must now file SPICe+ Part B with attachments on the MCA portal. Mandatorily include INC-9, AGILE-PRO, INC-12.

6. Get a License and COI

   • After submitting forms, the Regional Director issues the license under Section 8 if all documents are in order. Once approved, the Registrar of Companies will issue a Certificate of Incorporation (COI) and Company Identification Number (CIN). After incorporation, the MCA portal will auto-generate the PAN & TAN from the Income Tax Department.