A Section 8 company is a non-profit organization formed under the Companies Act, 2013, for charitable purposes such as education, social welfare, environmental protection, and other social causes. Unlike private limited company registration , Section 8 companies do not distribute profits to their members and enjoy various tax benefits.
In this article, we will guide you through the Section 8 company registration process, its benefits, compliance requirements, and tax exemptions. Additionally, we will cover GST registration online, required GST registration documents , and the GST cancellation process , including how to cancel GST registration if necessary.
What is a Section 8 Company
A Section 8 company is a legal entity that operates with a social or charitable objective rather than profit-making. These companies receive tax exemptions and other benefits, making them ideal for NGOs, trusts, and charitable institutions.
Key Features of a Section 8 Company:
•Operates without profit motive
• Enjoys tax exemptions under Section 12AA and 80G of the Income Tax Act
• Requires at least two directors (for a private Section 8 company)
• Governed by the Companies Act, 2013
• Can receive donations and grants
Benefits of Section 8 Company Registration
Registering a Section 8 company provides several advantages:
Legal Recognition – Enhances credibility for receiving donations and grants.
Tax Benefits – Eligible for exemptions under Income Tax Act, 1961.
Limited Liability – Directors' personal assets are protected.
Separate Legal Entity – Independent from its members.
Exemption from Stamp Duty – Lower registration costs than other entities.
No Minimum Capital Requirement – Can be registered with any capital amount.
Section 8 Company Registration Process
The Section 8 company registration process is online and can be completed through the Ministry of Corporate Affairs (MCA) portal.
Step 1: Obtain Digital Signature Certificate (DSC)
• All directors must obtain a DSC from government-approved agencies.
• Used for digitally signing incorporation documents.
Step 2: Apply for Director Identification Number (DIN)
• Each director must apply for DIN via Spice+ (Simplified Proforma for Incorporating a Company Electronically) on the MCA portal.
Step 3: Name Reservation (RUN Form)
• Apply for name approval using the Reserve Unique Name (RUN) service.
• The company name should end with "Foundation," "Association," "Forum," or "Council."
Step 4: Draft Memorandum of Association (MOA) & Articles of Association (AOA)
• MOA defines the objectives and charitable purpose.
• AOA outlines the operational rules and regulations.
Step 5: File INC-12 for License Approval
• Submit INC-12 to the Registrar of Companies (ROC) for approval.
• Provide Section 8 company registration documents, including MOA, AOA, and income tax exemption details.
Step 6: File Spice+ Form for Incorporation
•Submit Spice+ with MOA, AOA, and GST registration online application (if required)
• Upon approval, the ROC issues a Certificate of Incorporation (COI).
Step 7: Apply for PAN, TAN & GST Registration
• Obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
• If turnover exceeds the GST threshold, apply for GST registration online.
Documents Required for Section 8 Company Registration
The following GST registration documents and incorporation papers are required:
For Directors & Shareholders:
PAN Card & Aadhaar Card
Passport-size photographs
Address proof (Electricity bill, Bank statement)
For Registered Office:
Rent Agreement & No Objection Certificate (NOC)
Utility Bill (Electricity, Water, Gas)
For Company Registration:
MOA & AOA
Declaration under INC-14 and INC-15
Estimated Income & Expenditure Statement
GST Registration for Section 8 Companies
A Section 8 company must register for GST if:
• Annual turnover exceeds ?20 lakh (for services) or ?40 lakh (for goods).
• It engages in interstate supply or e-commerce activities.
How to Apply for GST Registration Online?
1.Visit the GST portal – gst.gov.in
2.Click New Registration and fill out business details.
3.Upload required GST registration documents.
4. Submit the application and get GSTIN approval.
How to Check GST Registration Status?
After applying, you can check your GST registration status:
1.Go to the GST portal and click on "Track Application Status."
2.Enter your ARN (Application Reference Number).
3.View the status – Pending, Approved, or Rejected.
GST Cancellation Process for Section 8 Companies
If a Section 8 company no longer requires GST, it can apply for GST cancellation.
How to Cancel GST Registration?
Log in to the GST portal.
Direct to "Services" > "Registration" > "Application for Cancellation."
Choose the reason for cancellation of GST registration.
Upload necessary documents and submit the application.
After submission, the GST officer reviews and approves the cancellation within 30 days.
One Person Company Registration Process
1.Obtain DSC & DIN for the owner.
2.Reserve company name via SPICe+ Form.
3.Draft MOA & AOA.
4.File incorporation documents with MCA.
5.Obtain Certificate of Incorporation.
6.Apply for GST registration online if required.
Conclusion
Registering a Section 8 company is a great way to establish a non-profit organization with legal recognition and tax benefits. Whether you need to complete GST registration online, check GST registration status, or identify the GST cancellation process, it is essential to stay compliant with tax laws.
For those planning to start a One Person Company , the OPC registration process is also simplified, allowing individuals to establish a legally recognized business entity.
Need expert guidance on Section 8 company registration, GST registration, or company incorporation? Contact professionals to streamline the process.
FAQs
1.Can a Section 8 company be converted into a private limited company?
ANS. Yes, but it requires MCA approval and compliance with company conversion rules.
2.Is GST registration mandatory for all Section 8 companies?
ANS Only if the turnover exceeds the GST threshold or engages in interstate trade.
3.What is the time required for Section 8 company registration?
ANS It usually takes 15-20 days, depending on MCA approval.
4.Can a One Person Company be converted into a Section 8 company?
ANS No, as an OPC is a for-profit entity, while Section 8 companies are non-profit.
5.How long does it take for GST cancellation approval?
ANS Typically, 30 days, depending on the GST officer's verification