How to Register a Section 8 Company and FCRA Registration

If you're passionate about making a social impact through a non-profit organization, registering a Section 8 company could be your ideal path. Section 8 companies, under the Companies Act, 2013, are formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other object, provided the profits, if any, or other income is applied for promoting only the objectives of the company.

Understanding Section 8 Company Registration

What is a Section 8 Company?

A Section 8 company is a type of non-profit organization that can be formed with charitable objectives. Unlike other companies, it does not distribute profits to its members and utilizes its income for promoting its objectives.

Key Benefits of Section 8 Company Registration

Tax Exemption: Section 8 companies can enjoy exemptions under sections like 12a 80g registration of the Income Tax Act, making donations to them tax-deductible for donors.

Legal Recognition: They have legal recognition for carrying out charitable activities, which enhances credibility and trust among stakeholders.

Limited Liability: Members have limited liability, protecting their personal assets from the company's debts or liabilities.

Steps to Register a Section 8 Company

Step 1: Obtain Digital Signature Certificate (DSC)

The first step in company registration is to obtain DSCs for all proposed directors. This is essential for filing documents electronically with the Registrar of Companies section 8 company registration online.

Step 2: Apply for Director Identification Number (DIN)

Each director must apply for a DIN, which is a unique identification number issued by the Ministry of Corporate Affairs (MCA).

Step 3: Name Approval

Choose a unique name for your Section 8 company and apply to the MCA for name approval through the RUN (Reserve Unique Name) service.

Step 4: Drafting Memorandum and Articles

Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) outlining the company's objectives and rules for its operation.

Step 5: Incorporation Application

File SPICe (Simplified Proforma for Incorporating Company Electronically) form along with MoA, AoA, and other necessary documents like PAN, address proof, and identity proof of directors.

Step 6: Obtaining Section 8 License

After incorporation, apply for a Section 8 license by submitting Form INC-12 to the RoC, along with the required documents including a declaration of charitable objectives and details of the proposed activities.

Step 7: Applying for 12A and 80G Registration

Once incorporated, apply for registration under sections 12A and 80G of the Income Tax Act for tax exemptions on income and donations received.

Conclusion

Registering a FCRA Registration involves a structured process aimed at promoting social welfare and charitable activities. By following these steps and complying with regulatory requirements, you can establish a legally recognized entity dedicated to making a positive impact on society.

If you're ready to embark on this journey of social responsibility and wish to ensure your Section 8 company registration is handled with expertise and care, consider partnering with us at [NGO Company Name]. We specialize in guiding organizations through the complexities of FCRA Registration, ensuring compliance and facilitating your mission effectively.

This blog aims to provide a clear, actionable guide for anyone looking to register a Section 8 company, emphasizing the importance of legal compliance and the benefits of choosing this form of organization for charitable endeavors.

How to Register a Section 8 Company and FCRA Registration