Section 8 Company Registration in Just 15 Days—Start Now!

According to the Companies Act of 2013, both organizations and individuals can qualify to establish a Section 8 company registration in India. However, the Section 8 companies in India are treated as non-profit organizations.

Are you motivated to contribute to the nation by encouraging social welfare, education, or art?

Yes, now every passionate social helper can build an organization without the burden of profit motives. For such motivated organizations, establishing a organization can prove beneficial.

It provides a legal framework that covers the surroundings of a company. But the business registration online is the primary step. This can only be done with the right guidance and preparation. Well, in just 15 days, you can complete the Section 8 registration. Let’s explore this blog to learn about the importance of Section 8 company registration, the application fee, the required documents, and much more. 

Also Read This: NGO and Non-Profit Company Registration Under Section 8 

What Exactly is a Section 8 Company Registration?

In India, the Section 8 company acts as a unique non-profit organization. Such organizations follow the rules and regulations under the Companies Act, 2013. Unlike LLP, Pvt Ltd, or Nidhi companies, Section company registration is the gateway to gaining profits. It was introduced to encourage education, research, social welfare, charity, and many other things. But here is the catch: the Section 8 organizations are restricted from distributing the profits. However, the profit can be used for further development or social welfare.

The directors and members of the incorporated non-profit organization are prohibited from utilizing any portion of the income or profits. The unique and different rules make the non-profit company an ideal vehicle for social good. 

Why Choose Section 8 Company Registration- Gateway of benefits

Establishing your company as a Section 8 can prove beneficial as it offers several advantages. Those who are dedicated to social causes can go with this legal framework:

Benefits	Explanation
Enhanced Credibility and Trust	The activities of a registered Section 8 company are governed by strict rules and regulations. The robust legal framework significantly contributes to enhancing credibility. The stringent regulations protect the company’s image and also boost the trust of clients and investors.  Yes, the Section 8 registration steps create a safe path for operators so that the donors and the government bodies can trust them. For the operators, it becomes easier to attract the attention of funders.
Tax Exemptions	The tax exemption is another factor that encourages businesses to register for a Section 8 company. Under the Income Tax, 1961, Section 8 can utilize the services of the tax.  12A Registration: If a company is registered as a non-profit and established for charitable objectives, it is exempt from income tax.   80G Registration: The donors who offer donations to a registered Section 8 company are exempt from income tax. It marks one of the most beneficial incentives for donors.
No Minimum Capital Requirement	Compared to other legal business registration online companies, a registered Section 8 business is not required to share capital. It means there is no need for a minimum share capital to build a non-profit company in India. The individuals who seek to start the social impact journey to contribute to the nation can go with the Section 8 legal framework.
Limited Liability Protection	Like other companies, the Section 8 company registration online in India also offers the benefit of limited liability. It explains that the personal assets, like a car, home, or savings, are safe from nonprofit directors and members. In case of financial risks or legal challenges, the personal assets will not be affected. The limited liability acts as a sense of security for the members or directors.
Perpetual Succession	The demise or departure of members or directors of a nonprofit company does not impact the continuity of the business. This indicates that a Section 8 company provides the benefit of perpetual succession. The company will still work as it was working before the departure or death of a member. There is no need to worry about long-term sustainability for social welfare objectives.

The 15-Day Sprint: Company Registration Online

To register your company as a Section 8 in 15 days, you need accurate document preparation, guidance from an expert, and more. But the registration process can be more lengthy, as it depends on the document preparation and the efficiency. Here are the steps for online company registration in India: 

Days 1-2: (DSC) & (DIN) 

Currently, the registration of any company in India is conducted through an online process. Yes, the company incorporation steps are done digitally. That’s where the DSC (Digital Signature Certificates) and DIN (Director Identification Numbers) play an instrumental role. The directors of a Section 8 company are required to obtain the DSC and DIN to sign the papers digitally. It offers a sense of security. Typically, this procedure takes between 1 to 2 days.

The required documents for DSC and DIN are:

• PAN Card 
• Aadhaar Card
• Passport-size photographs
• Proof of address 
• Mobile number and Email ID

Days 3-5: Name Approval 

The approval of the company name is a crucial process in the online business registration process in India. It is mandatory to choose a distinct and appropriate name for your organization.  The chosen company name must not exist and also reflect the company’s working nature. 

To register the company officially, the business requires name approval. Well, the business can apply for name approval through Reserve Unique Name. It is a ministry service on the MCA portal. Nevertheless, the name approval process requires 2 to 3 days. It is crucial that the chosen name needs to be approved by the ROC.

Days 6-10: Application for Section 8 License (Form INC-12) 

To operate a Section 8 registration company in India, it is necessary to register with the Regional Director. This is a crucial procedure in obtaining the company license. Registration with the ROC under the Companies Act 2013 is done using Form INC-12. Before issuing the Section 8 company license, the objectives and plans of the company will be reviewed by the ROC officials. The steps for the license application take 6 to 10 working days. 

The important documents needed with Form INC-12 are

• Draft Memorandum of Association (MoA) 
• Draft Articles of Association (AoA) 
• Declaration by the designated members
• professional (CA/CS/Cost Accountant) 
• A declaration in Form INC-15 

Days 11-13: Filing of Incorporation Documents  

After the successful Section 8 license approval, fill out the SPICe+ form. Attach the main organization incorporation documents with this form. The SPICe+ form contains the various applications. 

The required documents to attach to the SPICe+ form are 

• Name reservation
• Incorporation of the company
•  Application for DIN, PAN, TAN 
• EPFO and ESIC registration (If applicable)
• GSTIN registration 

Days 14-15: Certificate of Incorporation

Upon approval of the license and completion of the verification process for the submitted documents, the ROC will provide the Certificate of Incorporation. The issuance of the CoI signifies that the business is officially registered as a Section 8. Additionally, the PAN and TAN will be issued by the ROC along with the incorporation certificate.

Congratulations!! Your company is now officially registered in accordance with the Companies Act, 2013.

Also Read This: Online Company Registration Types India 2025

Final Words | Section 8 Company Registration online in India

In the last, by navigating the online business registration steps, you can form a company. The transparent legal structure of a Section 8 company in India offers several advantages. Through this, the non-profit businesses are eligible to operate and pursue their charitable goals without legal risks. 

FAQ

1. Can a Section 8 company earn money?

Ans. Yes, the Section 8 company can earn a profit, but the difference is that it cannot use the earned money. The profits are used for charitable objectives. 

2. Is a Section 8 company exempt from Tax?

Ans. Yes, under Section 12A, the non-profit company is exempt from income tax. In case the company uses the profit personally, it comes under the income tax rules. 

3. What is the tax rate for a non-profit company?

Ans. In case the Section 8 incorporation gains profit and does not use it for charitable objectives, it needs to pay a 30% rate on the profit. 

4. Is a Section 8 company allowed to give a loan/

Ans. Yes, the registered company incorporation is allowed to support people financially by offering a loan. 

5. How to check the Section 8 company name availability?

Ans. The operators can check company incorporation name availability through the MCA service online portal.