Section 8 Company Registration in Delhi NCR, India
Companies registered under Section 8 in Delhi NCR are a suitable legal structure for organizations that are mainly established for charitable activities, social welfare services, education, environmental protection, research, arts/sport/science, religious activities, or other non-profit objectives. Section 8 Company Incorporation is governed by the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA).
We need to understand here that an ordinary company and a Section 8 company have different purposes. A Section 8 company has no profit objective. Its whole revenue shall continue to be utilized for the company’s stated object. It would not give profits as dividends to members.
For new organizations in Delhi, Noida, Gurugram, Ghaziabad, and Faridabad, proper drafting of the company’s objectives, Memorandum of Association (MOA), Articles of Association (AOA), and incorporation documents plays a significant role during the registration process.
Section 8 Company Registration Questions Fast Answers
What is a Section 8 Company?
A Section 8 Company is a company formed for the purpose of charitable or non-profit objectives, which the MCA under the Companies Act, 2013, accepts as the company’s sole reason for existence. Such companies may work towards the promotion of commerce, education, art, science, sports, research, religion, and charity, as well as the protection of the environment. These are the kinds of object clauses that MCA recognizes for purposes of licensing under Section 8 of the Companies Act.
Can I register a Section 8 company in Delhi NCR?
Indeed. A Section 8 Licence is a part of SPICe+ (Single-window system) that the MCA facilitates. A separate registration form (INC-l2) for the license is therefore unnecessary. The registration will be done through an e-form by the MCA.
Does a Section 8 license have to be obtained separately before registration?
On the basis of the MCA regulations and the latest circulars, for a new Section 8 Company, the license will be issued at the same stage as the Companies Incorporation (SPICe+), with no extra filing required by the company (INC-12).
What papers will be needed?
The usual documents that need to be submitted by a Section 8 company are
- Proposed name and objects
- Memorandum of Association and Articles of Association
- PAN and identity address proofs of subscribers/directors
- Registered office documents
- Owner NoC and utility bill dated three months back
MCA’s incorporation FAQs clarify documentary requirements for a Section 8 incorporation.
Can Section 8 companies be operational all over India?
It depends entirely upon the company’s MOA, which will have to be very specific and clear about the purposes and the objects. However, the fact that the registered office of the company is in Delhi does not mean that the company cannot work in other states. It may be necessary to seek approvals and registerations for operations in some states depending on the nature of the company’s work.
How to Incorporate a Section 8 Company in Delhi NCR?
1. Identify the Company’s Purpose (Object)
A nonprofit organization aims at providing some social benefit without expecting any reward or return in cash or kind. The main purpose or object should be identified. For example, the common objects are
- Providing education and skill development
- Healthcare and medical awareness
- Providing help and support to women and children
- Protecting and conserving nature and the environment
- Reducing poverty by improving access to services and education
- Rural infrastructure and development
- Support and promotion of social welfare
- Research in science and technology fields
- Facilitating sports development programs
- Betterment of the art and culture of the society
- Encouraging and supporting the participation of the community in development work
The objects should be so worded that they can describe all the activities that the organization envisages undertaking in the future.
2. Think of the Name of the Company
The name that an organization chooses to associate itself with has to pass certain tests, like being easily recognizable, unique, etc.
MCA’s Incorporation FAQs mention that names used by a Section 8 company should include a suitable word like “foundation,” “forum,” “association,” “federation,” “chambers,” “confederation,” “council,” or any other permitted word.
For instance, a Delhi-based project focused on education could have names based on the “Foundation” or “Association” style, provided that no other organization has this name on the records and the name is MCA approved.
3. Prepare Company Documents
A memorandum of association is a document that is drawn up to set out the key elements of the constitution of the company. This document outlines the company’s principal objects.
The articles of association contain the company’s rules and regulations for day-to-day management and operations.
4. Arrange Directors and Subscribers
The proposed company must have the directors and shareholders as per requirement, and their documents for the incorporation should be ready.
DSC(s) may be requested from signatories of incorporation documents to submit via electronic means.
5. Arrange Registered Office Documents
Usual materials to be submitted as proof of the registered office:
- Certificate or any other document confirming the existence of a registered office;
- Utility bill (water or electricity) not older than the last month;
- Where applicable, lease/agreement
- No-objection certificate from the owner of the property
- Copies of ID and/or address of shareholders/directors
Along with this, the latest edition of the Companies Act, MCA’s incorporation FAQ, has listed all the registered office-related https://www.rahuljhaassociatelegal.com/multi-state-cooperative-society-registration-in-delhi-india/
documents, e.g., a rent agreement (notarized in case of landlord/tenant, if any), the owner’s NOC, https://www.rahuljhaassociatelegal.com/multi-state-cooperative-society-registration-in-delhi-india/
and a utility bill for the registered office not more than two months old.
6. File SPICe+ and Linked Forms
The registration for an Section 8 company is done through the MCA’s SPICe+ system and related forms. The SPICe+ Part A, Part B, and other linked filing procedures are thoroughly elaborated in the current incorporation manual of MCA.
The MCA authorities review the application upon receipt. When an explanation is demanded for the documents / information to be supplied again, the applicant should amend the documents / information and submit again.
7. Receive the Certificate of Incorporation
Once the incorporation application is approved, the company gets the Certificate of Incorporation and becomes a registered company under the Companies Act, 2013.
Local Examples in Delhi NCR
For instance, an education/employment-support/vocational training-based non-profit organization located in East Delhi may choose to incorporate a Section 8 Company.
A company carrying out operations in Noida also has the scope of registering a Section 8 Company if the company aims at doing activities of health consciousness, community development, or environmental issues.
A local society in Gurugram may choose to do the work of the empowerment of the women, training, education, etc., of the community.
The incorporation of such bodies would typically fall under the MCA regulations irrespective of where they are located in Delhi NCR.
Section 8: Company Registration Services in Delhi NCR
Professional assistance in Section 8 company name registration can facilitate the entire registration process, which consists of the following elements:
- Consulting a lawyer for advice on business/activity Naming your company, finding a distinctive business name Verify the availability of the proposed company name MOA (Memorandum of Association) draft AOA (Articles of Association) draft Document DSC (Digital Signature Certificate) and directors Registered office DocumentSPI This (+) preparation and e-submission Linked MCA forms Registration filing: Cancelling/re-filing of documents after rejection by MCA Getting the incorporation certificate Filing incorporation formalities related to company PAN/TAN Post-registration compliance Registration of NGO/tax
The actual details of the requirements are based on your company business, your proposed company structure, and the documents you want to file.
Section 8: Nonprofit Company vs. Society: What Is Right for You?
The societies and companies under section 8 both can be used to achieve non-commercial purposes, but their operational rules are different.
A Section 8 Company is formed according to the Companies Act, 2013, and is run under the regulatory mechanism of the Ministry of Corporate Affairs (“MCA”). A society, on the other hand, is, in most cases, registered under the State Societies Act.
The best form of structure will depend on such considerations as the kind of governance you want, the nature of your activities, the type of funding you’re looking for, the kind of compliance you’re able to handle, and your strategic vision for the future.
Frequently Asked Questions
Is it permissible that a Section 8 Company receive donations?
documents, yes. A Section 8 company may legally obtain donations provided there are laws governing this area, the company’s governing body documents, and the donations’ funding sources themselves. Tax advantages to a donor or a receiving organization usually require their respective individual or separate registrations and approvals.
Is obtaining 12AB registration automatically the result of section 8 company incorporation?
12AB, not at all. Section 8 company incorporation and income tax registration, such as 12AB, are quite distinct. One should independently review the eligibility and application conditions for getting registration.
company. Is it permissible for a Section 8 company to obtain 80G approval?
If a Section 8 company satisfies the tax clearance conditions, it will be able to apply for tax approval, including 80G. The fact that a Section 8 Company has been incorporated alone is not a sufficient basis for the Company to have its application for 80G tax approval automatically accepted.
Can a Section 8 Company be jointly owned by a non-resident of India?
How long does Section 8 Company registration take?
The period of registration can vary a lot depending on name approval, document accuracy, MCA processing, resubmissions and any other circumstances at play. That is why, it is better to refrain from giving fixed periods of incorporation.
Contact Experts for Section 8 Company Registration at Delhi NCR
Besides filling out an incorporation form there is much more you must be able to do in order to begin a charitable organization. Getting an accurate MOA and AOA, setting out the right objectives, ensuring proper paperwork for a director, getting proof of registered-office and getting all these details correct for your MCA filing can go a long way in creating a strong structure and basis of the company.
If you plan to start a Section 8 Company in the NCR region Delhi, Noida, Gurgaon, Ghaziabad or Faridabad getting legal professionals on board can streamline the incorporation process and MCA filing based on the aims and objectives of the charity/non-profit you are intending to set up.
