Section 8 Company Registration in Noida

A Section 8 company in India is a non-profit organization established under Section 8 of the Companies Act 2013. This structure aims to promote commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection. They do 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.

The following are the benefits of integrating a Section 8 company over other modes of NGO registration.

• Non-Profit Objective: Section 8 companies are established with non-profit motives to promote charitable activities such as education, art, science, culture, social welfare, environmental protection, etc.
• Prohibition on Profit Distribution: Any profits or income earned must be reinvested into the company’s mission. Dividends cannot be distributed to members or directors.
• Separate Legal Entity: A company registered as a Section 8 company earns a distinct legal identity, meaning it can own property, enter into contracts, sue, or be sued in its name.
• 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 Noida can apply for tax exemptions under Section 12A and 80G of the Income Tax Act, which allows donors to claim tax benefits on donations.
• No Minimum Capital Requirement: Unlike private or public companies, there is no requirement for minimum paid-up capital. This makes it easier for NGOs or small organizations to be registered as a Section 8 company.
• Governance by the Board of Directors: Section 8 companies in Noida 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.
• 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.

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

Section 8 Company Registration online in Noida requires several identity and address proofs along with other documents.

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

There are three main steps required for forming a section 8 company besides collecting, preparing, and drafting the documents. These are as under:

1. Obtain a Digital Signature Certificate (DSC)

   • 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. 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 Noida 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.