Are you interested in setting up a Section 8 company for your non-profit or social enterprise? This guide will walk you through the online registration process to get your company recognized, tax-exempt, and legally compliant.

What is a Section 8 Company?

A Section 8 company is a non-profit organization established to support causes like education, social welfare, or scientific advancement. The advantage? These companies don’t pay taxes on income, provided the funds go towards the company’s objectives.

Benefits of Section 8 Company Registration

1. Non-Profit Status: A Section 8 company reinvests all income for public benefit, rather than profit distribution.
2. Tax Exemptions: By obtaining 12A and 80G registration, your company can benefit from tax exemptions, making it easier to attract donations and grants.
3. Legal Recognition: Registering as a Section 8 company provides credibility, essential for partnerships and fundraising.

How to Register Your Section 8 Company Online

1. Choose a Name: Select a name that aligns with your company’s mission and isn’t already in use. Verify availability on the Ministry of Corporate Affairs (MCA) website.
2. Get a Director Identification Number (DIN): Directors need a DIN to complete the registration. Apply online through the MCA portal.
3. Obtain a Digital Signature Certificate (DSC): This certificate allows you to sign documents electronically for submission on the MCA portal.
4. Prepare Necessary Documents: Gather identity and address proofs for directors, the Memorandum of Association (MOA), Articles of Association (AOA), and proof of the registered office address.
5. Draft MOA and AOA: The MOA describes your company’s objectives, while the AOA details the governance structure. Both must support your non-profit’s goals.
6. Submit Documents: With everything prepared, submit your application forms (INC-12, INC-13, etc.) on the MCA portal, attaching all required documents.
7. Obtain the License: Upon review, the Registrar of Companies will issue a license, making your Section 8 company official.

Next Steps: Apply for 12A and 80G Registration

To claim tax benefits, apply for 12A and 80G registration with the Income Tax Filing Department. These registrations enable you to:

• Claim tax exemptions on generated income.
• Issue tax-deductible receipts to donors, boosting your fundraising appeal.

Income Tax Filing: Timely tax filing is essential to avoid penalties. Consult experts like Komal Ahuja, who can help your NGO with compliance and tax benefits.

Conclusion

Setting up a Section 8 company Ragistration can significantly enhance your organization’s impact. Complete the registration steps, then apply for 12A and 80G for tax advantages. Working with consultants like Komal Ahuja can help ensure you meet all legal and tax requirements smoothly.