What is Section 8 Company? Which company provides Section 8 Company Registration Online?

What is a Section 8 company? 

A company is a legal entity that is formed by an individual or a group of individuals to carry out business operations with the ultimate objective of making profits. It is not mandatory that all the companies should have profit-making as their ultimate goal, there are companies whose ultimate objective is not profit-making but have a charitable and non-profit objective. The company whose main objective is social welfare is known as a Section 8 company. These types of companies are known as section 8 companies because they get recognition under section 8 of the company act, 2013. These companies are involved in social welfare and their ultimate objective is to uplift society instead of maximizing their profits. The profits of a Section 8 company are used further to serve its cause and objectives. The profits are not distributed amongst its members. 


If we talk about India then 3 types of legal forms exist for a non-profit organization. These include your trust, society, and section 8 companies. The trusts do not have any central law whereas Societies have different legal and institutional frameworks from state to state. In the case of section 8 companies, there is one single law stating all the provisions, objectives, and guidelines which are mentioned in the company act, 2013 of India. Previously such non-profit companies were defined under section 25 of the company act, 1956, After the introduction of the company act, 2013, certain extra provisions and objectives are prescribed that a section 8 company can have. 

 

What makes section 8 companies different from other companies | Distinctive features of a section 8 company 


  • Objectives: Section 8 companies have different objectives from a normal company. A normal company focuses on profit-making while a section 8 company focuses on social and public welfare and has charitable objectives. 


  • Capital: Unlike other companies, there is no minimum requirement of paid-up share capital for section 8 companies. 


  • Licensing: Section 8 companies can only operate once they have obtained a license from the central government. The government also has the power to revoke the license of the company in case of any violation and contravention of the provisions of section 8. The government can also cancel the license if the company is involved in any fraudulent and unfair practices or violates the terms of the license. 


  • Benefits: These types of companies get certain benefits and exemptions since they are charitable firms and receive aid from the government as well. 


Section 8 company registration can be done online. It is an entirely online procedure that can be done easily with the comfort of sitting at home. Certain steps are required for Section 8 company registration which are as follows- 

 

Step 1 – Name approval: Application for approval of the name of the section 8 company must be made in the RUN facility. The name should include words like Foundation, Forum, Association, Federation, Chambers, Confederation, Council, etc. The company does not need to add the suffix limited after its name. 

Step 2 – DSC should be obtained to incorporate it with the Registrar of Company 

Step 3 – Drafting Memorandum of Association and Article of Association 

Step 4 – After these steps, one can move further and file for the SPICe 32 form. It is mandatory to file the MOA and AOA as pdf attachments to the SPICe 32 form. 


Society registration online in India 


Similar to section 8 companies, societies are also a type of NPO governed by the Society Registration Act of 1860 which was replaced by the Society Registration Act of 1986. Society registration is needed to promote art, science, literature, knowledge, etc.  


Process of Society registration online 


Step 1 – Selection of unique name 

Step 2 – Drafting MOA (Memorandum of Association) and rules and regulations 

Step 3 – Requirement of documents including PAN card, MOA, residence proof, etc. 

Step 4 – Submission of documents and registration 


There are various companies available both offline and online that provide section 8 company registration online services. LawgicalIndia is the top-most company that provides its fast, easy, and hassle-free section 8 company registration and society registration services. At LawgicalIndia the entire registration process is completed in a few days with the help of a team of experts who possess extensive experience in this field. LawgicalIndia is the right place if you are looking for contributing to society and real to do something for the welfare and upliftment of society as a whole.  


Seeking professional help is the right way to get your section 8 company registered. This will avoid any inaccuracy in the documentation of your company that might hinder the process of registration. With Lawgical India you can trust the experts with the entire process. It is cost-effective and not so heavy on the pocket.  

So get your section 8 company registered now! 

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