Section 8 Company Registration in India with YathraFin

Why Choose YathraFin for Section 8 Company Registration?

YathraFin is committed to supporting social causes by providing streamlined and affordable services for Section 8 Company registration. Here’s why you should choose us:

• Expert Guidance: Our team of professionals helps you navigate the legal requirements of setting up a Section 8 Company.
• End-to-End Support: From registration to post-registration compliance, we offer comprehensive support for your non-profit.
• Affordable Services: We provide budget-friendly services tailored for non-profit organizations to help you focus on your social mission.
• Regulatory Compliance: We ensure that your Section 8 Company complies with all necessary regulations, including income tax exemptions.

Key Features of a Section 8 Company

• Non-Profit Objective: The main purpose of the company must be to promote charity, education, art, culture, or other similar objectives.
• Limited Liability: Members and directors enjoy limited liability, ensuring that their personal assets are protected.
• No Profit Distribution: Unlike for-profit companies, Section 8 Companies cannot distribute profits to members, shareholders, or directors.
• Tax Exemptions: Section 8 Companies can avail tax exemptions on income under Section 12A of the Income Tax Act, provided they comply with applicable regulations.
• Grant and Funding Opportunities: Such companies can apply for government grants and funds for welfare and developmental activities.

Types of Section 8 Companies

Section 8 Companies are typically categorized based on their primary objective:

• Charitable Section 8 Companies: These companies focus on public welfare activities such as providing education, healthcare, or aid to underprivileged groups.
• Educational Section 8 Companies: Set up to promote education and learning, offering scholarships, free education, and similar activities.
• Environmental Section 8 Companies: Focus on environmental sustainability and eco-friendly initiatives like conservation, tree planting, and renewable energy projects.
• Sports and Cultural Section 8 Companies: Dedicated to promoting sports and cultural events, including organizing festivals, sports tournaments, and arts events.

Step-by-Step Registration Process with YathraFin

• Step 1

  Obtain Digital Signature Certificate (DSC)

  This is required to sign the company’s documents electronically.

• Step 2

  Apply for Director Identification Number (DIN)

  DIN is a mandatory requirement for all directors.

• Step 3

  Name Reservation

  The proposed name of the Section 8 Company must be approved by the Ministry of Corporate Affairs (MCA).

• Step 4

  Draft MOA and AOA

  The Memorandum and Articles of Association must clearly define the non-profit objectives and internal management.

• Step 5

  File SPICe+ Form

  Submit the SPICe+ form to the MCA for incorporation, including the details of the company, members, and directors.

• Step 6

  Certificate of Incorporation

  After MCA approval, you will receive a Certificate of Incorporation.

• Step 7

  PAN and TAN Application

  Apply for PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for the company.

• Step 8

  Comply with Tax Exemptions

  To avail of tax exemptions, the company must register with the Income Tax Department under Section 12A.

Rules and Regulations for Section 8 Companies

Section 8 Companies must comply with the following:

• Non-Profit Declaration: The company’s activities must be strictly non-profit, with all income used to further its objectives.
• Taxation and Exemptions: To avail of income tax exemptions, the company must file annual returns and ensure compliance with Section 12A of the Income Tax Act.
• Governance and Oversight: Section 8 Companies are subject to the Companies Act, 2013, and must adhere to corporate governance norms.
• Filing Annual Returns: Section 8 Companies are required to file annual financial statements and reports with the Registrar of Companies (ROC).

Compliance Requirements After Registration

After registration, a Section 8 Company needs to ensure the following compliance:

• Annual General Meetings (AGM): Conduct AGMs and file annual returns with the ROC.
• Tax Filings: Ensure timely filing of income tax returns and apply for any applicable tax exemptions.
• Maintain Statutory Registers: Maintain registers for directors, members, and other corporate records.
• Audit: Section 8 Companies must undergo annual audits to ensure financial transparency.
• Charitable Activities: The company must ensure that all income is used exclusively for the non-profit objectives.

Benefits and Government Schemes for Section 8 Companies

Section 8 Companies enjoy several benefits, such as:

• Tax Exemption: Section 8 Companies can avail tax exemptions under Section 12A and 80G of the Income Tax Act.
• Government Grants and Donations: These companies are eligible to receive government funding, grants, and donations for welfare purposes.
• Limited Liability Protection: Directors and members have limited liability, protecting their personal assets.
• Access to CSR Funding: Section 8 Companies can receive Corporate Social Responsibility (CSR) funding from corporate bodies.
• Public Trust: As a registered entity, Section 8 Companies gain credibility, making it easier to attract donors, investors, and volunteers.