Our Services

At AI Auditors, We Provide Section 8 Company Services.

Embark on a purpose-driven journey with AI Auditors, your reliable partner for Section 8 Company registration. As specialists in non-profit organizations, we offer a seamless experience tailored to your philanthropic aspirations.

Why Choose AI Auditors for Section 8 Company Registration?

1. Guided Expertise:

- Navigate the intricate process of Section 8 Company registration with the guidance of our seasoned experts.

2. Tailored Solutions:

- Enjoy personalized solutions crafted to address the unique requirements of your non-profit venture.

3. Compliance Commitment:

- Rest assured knowing that our commitment to compliance ensures adherence to all legal requisites for Section 8 Companies.

4. Efficiency Unleashed:

- Experience an efficient registration process that minimizes delays, facilitating the prompt establishment of your organization.

5. Transparent Communication:

- Stay well-informed throughout the registration journey with transparent and lucid communication from our dedicated team.

6. Holistic Support:

- Avail comprehensive support covering everything from document preparation to submission, making the entire process hassle-free.

AI Auditors invites you to embark on a purposeful journey, realizing your vision for positive change through the seamless establishment of your Section 8 Company. Trust us to handle the complexities while you focus on making a meaningful impact. Welcome to a purpose-driven partnership with AI Auditors!

What is Section 8 Company

A Section 8 Company, as per the Companies Act, 2013 in India, is a type of non-profit organization that operates for the promotion of charitable, scientific, or artistic purposes. Unlike other companies, the primary objective of a Section 8 Company is not to earn profits for its members but to apply its revenues for promoting its objectives.

Key features of a Section 8 Company:

1. Non-Profit Nature:

- The company's income and property are to be used solely for promoting its objectives, and any profits generated are ploughed back into the organization.

2. Charitable or Social Objectives:

- Section 8 Companies are typically established for purposes like promoting art, commerce, education, charity, religion, science, sports, social welfare, research, and protection of the environment.

3. No Dividends to Members:

- Members or shareholders of a Section 8 Company do not receive any dividends. Any surplus funds are reinvested in the organization's activities.

4. Limited Liability:

- The liability of the members is limited to the extent of their contributions, making it similar to a company limited by guarantee.

5. No Minimum Capital Requirement:

- Unlike other types of companies, there is no mandatory minimum capital requirement for establishing a Section 8 Company.

6. Regulatory Compliance:

- Section 8 Companies must comply with the regulations set forth by the Ministry of Corporate Affairs (MCA) in India.

7. Use of Profits:

- Profits generated by the organization must be utilized for the promotion of its objectives and cannot be distributed among its members.

8. Board Structure:

- The governance structure includes a board of directors, much like other companies, responsible for managing the affairs of the organization.

Key features and Benefits of Section 8 Company

Key Features of Section 8 Company:

1. Non-Profit Nature:

- A Section 8 Company is established for promoting charitable, scientific, or artistic purposes, ensuring that its primary objective is not profit generation for its members.

2. Charitable Objectives:

- The organization operates with the aim of promoting activities like art, commerce, education, charity, religion, science, sports, social welfare, research, and environmental protection.

3. Limited Liability:

- Members of a Section 8 Company enjoy limited liability, meaning their personal assets are protected, and their liability is restricted to the extent of their contributions.

4. No Dividends to Members:

- Unlike for-profit companies, Section 8 Companies do not distribute dividends to their members. Any surplus funds are reinvested in the organization's activities.

5. Utilization of Profits:

- Profits generated by the organization are directed towards promoting its objectives and cannot be distributed among its members.

6. Government Approval:

- To establish a Section 8 Company, approval from the central government is required, and the organization must adhere to the regulations set forth by the Ministry of Corporate Affairs (MCA).

7. Minimum Capital Requirement:

- There is no mandatory minimum capital requirement for forming a Section 8 Company, making it accessible for organizations with varying financial capacities.

Benefits of Section 8 Company:

1. Social Impact:

- Section 8 Companies play a vital role in contributing to social welfare, community development, education, healthcare, and various other noble causes.

2. Limited Liability:

- Members enjoy limited liability, providing personal asset protection and minimizing individual financial risk.

3. Tax Benefits:

- Section 8 Companies can avail themselves of tax exemptions and deductions, enhancing their financial sustainability.

4. Credibility and Recognition:

- Section 8 status lends credibility to the organization, instilling trust among donors, stakeholders, and the public.

5. Perpetual Succession:

- The organization enjoys perpetual succession, ensuring continuity of its activities despite changes in membership.

6. Access to Funding:

- Section 8 Companies can attract grants, donations, and other funding sources due to their non-profit nature and social objectives.

7. Legal Recognition:

- Section 8 Companies are legally recognized entities, providing a formal framework for governance and operations.

Duration For Section 8 Company

The duration for establishing a Section 8 Company in India can vary based on several factors, and the timeline generally depends on the efficiency of the registration process and the compliance with legal requirements. However, here is a general outline of the key steps and estimated timelines:

1. Approval of Name:

- The first step involves obtaining approval for the proposed name of the Section 8 Company from the Registrar of Companies (RoC). This process can typically take a few days to a week.

2. Application for License:

- Once the name is approved, the organization needs to submit an application to the central government for obtaining a license under Section 8 of the Companies Act, 2013. The time taken for the government to review and grant approval can range from a few weeks to a couple of months.

3. Incorporation Process:

- After obtaining the license, the Section 8 Company can proceed with the incorporation process. This involves preparing the Memorandum of Association (MOA) and Articles of Association (AOA), and filing the necessary documents with the RoC. The incorporation process may take a few weeks.

4. Issuance of Certificate of Incorporation:

- Once all documents are submitted and verified, the RoC issues the Certificate of Incorporation for the Section 8 Company. This marks the official establishment of the organization. The issuance of the certificate typically takes a few weeks.

5. Post-Incorporation Compliance:

- After incorporation, there are certain post-registration compliances that need to be addressed, such as obtaining a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and Goods and Services Tax (GST) registration, if applicable. The time for completing these processes may vary.

Documents Required For Section 8 Company

1. Identity Proof of Directors and Members:

- Aadhar card or Passport or Voter ID card or Driving License of all proposed directors and members.

2. Address Proof of Directors and Members:

- Recent utility bills (electricity bill, gas bill, water bill) or bank statements in the name of directors and members.

3. Passport-sized Photographs:

- Passport-sized photographs of all directors and members.

4. Proof of Registered Office:

- Rent agreement or ownership proof of the registered office premises. Utility bills like electricity bill or property tax receipt may also be required.

5. NOC from the Owner:

- No Objection Certificate (NOC) from the owner of the registered office premises.

6. Declaration from Directors and Members:

- A declaration stating their consent to act as directors and members in the Section 8 Company.

7. Proposed Company Name:

- The proposed name of the Section 8 Company along with an alternative name, if required.

8. Memorandum of Association (MOA):

- The MOA defines the objectives and scope of the Section 8 Company.

9. Articles of Association (AOA):

- The AOA contains the rules and regulations for the internal management of the Section 8 Company.

10. Declaration of Compliance:

- A declaration by professionals involved in the incorporation process, such as a Chartered Accountant, Company Secretary, or Advocate, affirming that all legal requirements have been met.

11. License Application Form:

- The application form for obtaining a license under Section 8 of the Companies Act, 2013.

12. Statement of Assets and Liabilities:

- A statement of the company's assets and liabilities, signed by all directors.