Section 8 Company Registration in Faridabad

A Section 8 company in India, established under the Companies Act of 2013, is a non-profit organization focused on promoting commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection. This structure of the company does not aim to generate profits, which means that the income of a non-profit association cannot be distributed as dividends to its partners. Instead, all earnings must be employed for extending its charitable pursuits.

• Non-Profit Objective: Section 8 companies in Faridabad are established by individuals who are willing to contribute to the society by promoting education, art, science, culture, social welfare, environmental protection, etc.
• No Minimum Capital Requirement: Unlike private or public companies, there is no requirement for minimum paid-up capital for section 8 company registration online in Faridabad. This makes it easier for NGOs or small organizations to be registered as a Section 8 company.
• Exemptions and benefits: Section 8 companies get relaxations in several legal compliances under the Companies Act, like reduced stamp duty, exemption from using “Limited” or “Private Limited” in their name, and concessions in filing requirements.
• Prohibition on Profit Distribution: Any profits or income earned must be reinvested into the company’s mission of promoting charitable activities. Dividends cannot be distributed to members or directors.
• Separate Legal Entity: A company after Section 8 company registration in Faridabad earns a distinct legal identity, meaning it can own property, enter into contracts, sue, or be sued in its name.
• Governance by the Board of Directors: Section 8 companies in Faridabad are managed by a Board of Directors, just like private limited companies. Corporate governance rules and board meetings apply.
• High Credibility: Being regulated by the Ministry of Corporate Affairs (MCA) and following structured financial reporting, Section 8 companies are often considered more credible than trusts or societies, especially by foreign donors and institutions.
• Limited Liability: Members' and directors' liability is limited to the extent of their shareholding or guarantee. Personal assets are protected in case of legal disputes.
• Tax Exemptions: Section 8 companies in Faridabad can apply for tax exemptions under Section 12A and 80G of the Income Tax Act, which allows donors to claim tax benefits on donations.

• 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 online in Faridabad , 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 Faridabad . If you apply during incorporation, DIN is already included in the SPICe+ form.

3. Name Reservation

   • To reserve a name during Section 8 company registration online in Faridabad, you must propose two names in order of preference using Form SPICe+ Part A on the MCA portal. The name must necessarily include words like Foundation, Association, Society, Council, Charities, etc, and must not be undesirable or too similar to existing names of the registered companies.

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.