Who can form a Section 8 Company?

Anyone to promotes social welfare, education, charity, or similar non-profit activities can form a Section 8 Company. Requires at least 2 members. Must have non-profit objectives and comply with regulations set by the Ministry of Corporate Affairs (MCA).

How long does it take to complete the Section 8 Company registration online?

The entire process for registering a Section 8 company online typically takes 10 to 15 days, depending on the approval process and document submission.

What are the minimum requirements for a Section 8 Company?

The minimum requirements for a Section 8 Company are as follows: Directors: At least 2, with one being a resident of India. Shareholders: A minimum of 2. Non-profit Objective: Should focus on charity, education, health, etc. Registered Office: A physical address in India.

How should I choose the name for my Section 8 Company?

The name should reflect the non-profit nature of the company. Avoid names similar to existing companies or trademarks. It's common to use terms like "Foundation", "Association", or "Society" to indicate the company's charitable purpose.

How many directors are required for a Section 8 Company?

A Section 8 company must have at least 2 directors, with one being a resident of India.

What is the role of the Regional Director (RD) in Section 8 Company registration?

The Regional Director (RD) plays a critical role in approving the Section 8 company’s formation after reviewing the documents submitted to the Ministry of Corporate Affairs (MCA).

Is a Physical Office Mandatory to Establish a Section 8 Company?

Yes, having a physical office address in India is a mandatory requirement for registering a Section 8 company.

What is the difference between a trust, a society, and a Section 8 company?

The differences are: Trust: Governed by the Indian Trusts Act, 1882, where property is managed for beneficiaries. Society: A group formed under the Societies Registration Act, 1860, to promote charitable activities. Section 8 Company: A formal, non-profit company registered under the Companies Act, 2013, offering a legal structure and governance under company law.

What is the difference between an NGO and a Section 8 Company?

The difference between an NGO and a Section 8 Company is : An NGO (Non-Governmental Organization) can be a trust, society, or Section 8 company. A Section 8 Company specifically refers to a company structure under the Companies Act that is non-profit by nature.

How to register a Section 8 Company?

The process involves obtaining a DSC/DIN, reserving a name, and filing the SPICe+ form. For a detailed guide, see our step-by-step process above.

How to Get a Registration Number for a Section 8 Company?

Once registered, the company receives a Corporate Identity Number (CIN), which serves as its registration number.

Is GST registration mandatory for a Section 8 company?

GST registration is mandatory only if the company’s annual turnover exceeds the prescribed limit: ₹20 Lakhs for service providers. ₹40 Lakhs for goods providers.

Is FDI allowed in a Section 8 company?

Foreign Direct Investment (FDI) is not allowed in Section 8 companies, but foreign donations or grants can be accepted under the Foreign Contribution (Regulation) Act (FCRA).

Can a Section 8 Company be converted into any other company?

Yes, a Section 8 company can be converted into another type of company (e.g., public or private), but it requires following legal procedures and obtaining approval from the Ministry of Corporate Affairs (MCA).

Is Section 8 Company tax-free?

While not entirely tax-free, Section 8 companies enjoy certain tax exemptions: Donations made to these companies may qualify for tax deductions under Section 80G of the Income Tax Act.

Can foreign nationals or NRIs become directors of a Section 8 Company in India?

Yes, foreign nationals or NRIs can become directors of a Section 8 company, provided at least one director is a resident of India.

How can I check if my Section 8 Company is registered or not?

You can check the registration status of your Section 8 company on the MCA website by searching with the company name or CIN (Corporate Identity Number).

Can a Section 8 company pay remuneration to its directors?

Yes, Section 8 companies can pay reasonable remuneration to directors, but it must not be excessive or contrary to the company’s non-profit nature.

Is IFC applicable to Section 8 companies?

Yes, the Internal Financial Controls (IFC) apply to all companies, including Section 8 companies, regulating financial practices and corporate governance.

Is CSR applicable to Section 8 companies?

A Section 8 company is typically a recipient of CSR funds. It is only required to spend on CSR activities if it meets the high turnover and profitability criteria set out in the Companies Act, which is uncommon for a non-profit.

Can the director of the Section 8 company draw a salary?

Yes, the director of a Section 8 company can draw a salary, but it should be reasonable and aligned with the company’s non-profit objectives.

Section 8 Company Registration Online in India

Register your NGO or non-profit as a Section 8 Company with RegisterKaro. Get expert guidance through the MCA registration process and ensure full legal and compliance readiness, without delays.

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