A Sectionâ¯8 Company is a non-profit entity established under the Companies Act, 2013, designed for charitable, educational, environmental, and social welfare activities. It combines the legal status of a company with the philanthropic mission of NGOs.
ð 1. Introduction
Sectionâ¯8 Companies must apply profits solely toward their objectives and cannot distribute dividends to members. They enjoy limited liability, perpetual succession, and enhanced credibility compared to trusts or societies.
ð 2. Types of Licenses / Registrations Available
- â New Sectionâ¯8 Company Incorporation via SPICe+ & INC-12
- ð Conversion of Societies/Trusts into Sectionâ¯8 Company
- ð Post-registration compliance: 12A/80G tax filings, share dematerialization
ð¥ 3. Who Needs These Services?
- NGOs & charities seeking company structure
- Education, health, arts, sports, environmental groups
- Foundations requiring strong legal recognition
- Organizations aiming for tax exemptions and grant eligibility
âï¸ 4. Why Choose a Registration Service Provider?
- ð Drafting compliant MOA/AOA and objective statements
- â Handling DSC, DIN, name reservation, and all filings (INCâ1, 32, 12, 13, 14, 16)
- ð¡ï¸ Ensuring publication of notices and legal legitimacy
- ð§ Filing for 12A/80G, share dematerialization, and compliance support
- ð Avoiding delays and procedural rejections
ð ï¸ 5. Sectionâ¯8 Company Registration Process
Step 1: DSC & DIN
Obtain digital signatures and DINs for prospective directors.
Step 2: Name Reservation (INC-1)
Reserve a unique name ending with âFoundation/Association/Institute/etc.â.
Step 3: File SPICe+ (INC-32, 33, 34)
Submit MOA, AOA, and DSC/KYC documents via MCA portal.
Step 4: Submit INC-12
Apply for the Sectionâ¯8 Company licence under Form INCâ12.
Step 5: Declaration of Compliance (INCâ14)
Obtain certification from a CA/CS/Advocate and file Form INCâ14.
Step 6: Certificate of Incorporation (INCâ16)
Once approved, MCA issues the licence and CoI with CIN.
ð 6. Required Documents
- Identity & address proofs of directors/subscribers
- MOA & AOA stating charitable objects
- Financial estimates & asset-liability statements
- Subscription declaration & compliance affidavits (INCâ9, 15)
- Utility bills or lease deed for registered office
- DSC & DIN proof
- Compliance certificate by professional
ð¸ 7. Cost Involved
Item | Estimate (â¹) |
DSC (per director) | 1,000â2,000 |
SPICe+ govt. fee & stamp duty | 5,000â15,000+ (capital-based) |
Professionally certified MOA/AOA | 5,000â15,000 |
License application (INCâ12) | 6,000â10,000 |
Compliance/Form filing fees | 2,000â5,000 |
â³ 8. Time Taken
Stage | Duration |
DSC & DIN issuance | 2â3 working days |
Name reservation & SPICe+ filing | 5â10 working days |
INC-12 and licence approval | 4â8 weeks |
Certificate issuance (INCâ16) | 2â3 working days |
Total time: ~6â10 weeks
â ï¸ 9. Common Mistakes to Avoid
- Choosing non-compliant names (no âFoundation/Societyâ)
- Delayed or incorrect filing of INCâ12/14
- Missing asset/expenditure estimates or professional declarations
- Lack of proper office proof documentation
- Not applying for post-registration approvals like 12A/80G or dematerialization
ð 10. Call-to-Action (CTA)
Want to set up your Sectionâ¯8 Company with zero hassle?
ð§ Email: opriyatrendingpvtltd@gmail.com
ð² WhatsApp: +91â¯75887â¯56518
ð Visit: opriyatrending.in
We ensure complete complianceâfrom licence to tax benefits and beyond.
â 11. FAQs
Q1. Minimum directors needed?
At least 2; no cap on maximum.
Q2. What are tax benefits?
Sectionâ¯8 Companies get exemptions under 12A/80G and donors receive deductions .
Q3. Is profit distribution allowed?
No. All income must serve the companyâs objectives.
Q4. Must shares be dematerialized?
Yesâas per new MCA mandate effective 30 Sept 2024.
Q5. Can it convert later?
Conversion to regular company requires NCLT approval and compliance.