Section 8 Company Registration in Gurgaon

A Section 8 company in India is a non-profit organization dedicated to promoting commerce, art, science, sports, education, social welfare, religion, charity, and environmental protection. It does not aim to make profits, and any income earned must be reinvested to support its charitable objectives rather than distributed as dividends to members.

• Separate Legal Entity: A Section 8 company attains a distinct legal identity upon registration. 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 in Gurgaon 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 key characteristic of a Section 8 company is that any profits or income generated must be reinvested solely in achieving the organization's objectives.
• Legal Compliance: Regular board meetings, adherence to corporate governance principles, and statutory compliance requirements help maintain transparency and accountability.
• High Credibility: Section 8 companies, regulated by the MCA and required to submit financial reports, are generally seen as more credible than societies or trusts.
• Tax Exemptions: Section 8 companies in Gurgaon can apply for tax exemptions under Sections 12A and 80G of the Income Tax Act, reducing their tax burden and allowing donors to claim tax deductions.
• No Minimum Capital Requirement: Section 8 companies do not require a minimum paid-up capital, making them particularly accessible for small organizations, non-profits, and NGOs to register and start operations without the burden of initial capital.
• Exemptions and 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 Gurgaon, 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 Gurgaon. 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 Gurgaon 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 COI and CIN. Post-incorporation, the MCA portal will auto-generate the PAN & TAN from the Income Tax Department.