Key Features of Section 8 Company:

• Formed without profit motive

• No dividend distribution to members

• Profits must be used for charitable objectives

• Can be registered as a private or public company

• Enjoys tax and registration benefits

✅ Eligibility Criteria:

• Objective must be charitable or non-profit

• Profits must be reinvested in the company’s mission

• No dividend payment allowed

• Minimum:

  • 2 directors and 2 members – if private company

  • 3 directors and 7 members – if public company

• At least one director must be resident in India

📋 Documents Required:

For Directors/Members:

• PAN card

• Aadhaar card

• Passport-size photo

• Address proof (bank statement, electricity bill)

• Email ID and mobile number

For Registered Office:

• Rent agreement (if rented) or ownership proof

• Utility bill (not older than 2 months)

• NOC from owner

🛠️ Step-by-Step Registration Process:

1. Apply for Digital Signature Certificate (DSC)

Required for all proposed directors to digitally sign forms.

2. Reserve Company Name (SPICe+ Part A)

Use MCA portal; name must include words like Foundation, Association, Society, Council, etc., and should not resemble existing companies or trademarks.

3. Apply for Section 8 License (Form INC-12)

Includes:

• MOA and AOA drafts

• Project report or mission statement

• Estimated income & expenditure for 3 years

• List of promoters and board members

4. Incorporation Filing (SPICe+ Part B)

After license approval, file incorporation form:

• SPICe+ (Part B) + SPICe-MOA + SPICe-AOA

• Attach supporting documents

• PAN, TAN, EPFO, ESIC, Professional Tax (if applicable) also allotted together

5. Issue of Certificate of Incorporation

MCA issues Certificate of Incorporation along with Section 8 License under Form INC-16 or INC-17

💰 Govt Fees:

• Zero stamp duty in most states

• Concessional ROC fees for incorporation

• Professional charges vary depending on service provider

📑 Post-Incorporation Compliances:

• Open a bank account

• Apply for:

  • 80G and 12A Registration under Income Tax Act (for tax exemptions)

  • GST registration (if applicable)

  • NGO Darpan (for government grants)

• File annual returns with ROC and income tax department

⚖️ Benefits of Section 8 Company:

• Credibility and recognition

• Tax exemptions under 12A and 80G

• Limited liability for members

• No minimum capital requirement

• Perpetual succession and legal entity status

• Eligible to receive foreign donations (after FCRA registration)

⚠️ Restrictions:

• Cannot pay dividends to members

• Strict compliance requirements

• Profits can’t be used for personal or non-charitable purposes

• Prior approval required for major changes (e.g., MOA, AOA)