I. Section 8 Company Formation & Registration:

• Eligibility & Objectives Clarification:
  • Charitable Objects: Confirm that the client’s objectives align with the charitable purposes allowed for Section 8 companies under the Companies Act, 2013.
  • Non-Profit Nature: Ensure that the proposed activities are genuinely non-profit and for the benefit of society.
• Name Availability Search & Reservation:
  • Help clients choose a suitable name that reflects their objectives and complies with MCA naming guidelines.
  • Conduct a name availability search on the MCA portal and reserve the chosen name.
• Drafting of MOA & AOA:
  • Memorandum of Association (MOA): Draft the MOA clearly defining the company’s objects, powers, and limitations.
  • Articles of Association (AOA): Draft the AOA outlining the rules and regulations for the company’s internal management and governance.
• License Application & Incorporation:
  • Application to the Regional Director: Guide clients through the process of applying for a license from the Regional Director of the Ministry of Corporate Affairs (MCA).
  • Document Compilation: Assist in preparing and submitting all required documents, including:
    • MOA and AOA
    • Declaration from promoters
    • Estimated income and expenditure statement
    • Details of promoters and directors
• Incorporation & Certificate: Upon approval, obtain the Certificate of Incorporation from the ROC (Registrar of Companies).

II. Post-Registration Compliance & Support:

• PAN, TAN & Bank Account:
  • Assist in obtaining a Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the company.
  • Guide clients in opening a bank account in the name of the Section 8 company.
• Tax Exemption Applications:
  • 12A Registration: Help the company obtain a 12A certificate from the Income Tax Department for tax exemption on its income.
  • 80G Registration: Assist in obtaining 80G certification, allowing donors to claim tax deductions for their contributions to the company.
• FCRA Registration (If Applicable): If the company plans to receive foreign funding, guide them through the FCRA registration process with the Ministry of Home Affairs (MHA).
• Annual Compliance:
  • Annual Filings: Prepare and file the company’s annual returns and financial statements with the MCA, ensuring timely submission and compliance with accounting standards.
  • Board Meetings & AGM: Advise on conducting board meetings and the Annual General Meeting (AGM) in accordance with the Companies Act.
  • Other Statutory Compliances: Assist with other compliances, such as maintaining statutory registers, appointing auditors, and conducting secretarial audits (if applicable).

III. Other Services:

• Fundraising & Grant Writing:
  • Help the Section 8 company develop fundraising strategies and write grant proposals to secure funding for its charitable objectives.
• Project Management:
  • Assist with the planning, execution, and monitoring of the company’s projects or programs.
• Impact Assessment:
  • Guide the company in developing and implementing systems to measure and report on the impact of its activities.
• Legal & Regulatory Advisory:
  • Provide ongoing legal counsel and guidance on matters related to company law, taxation, FCRA, and other relevant regulations

 FAQs: Section 8 Companies: Your Guide to Non-Profit Incorporation & Compliance – The CauseConnect Team

1. What is a Section 8 Company?

A Section 8 company, as defined under the Companies Act, 2013, is a company registered for promoting charitable objectives like:

• Art, culture, education, science
• Sports, research, social welfare
• Religion, environmental protection
• Any other object of general public utility

It functions much like a company but operates on a non-profit basis, meaning profits are reinvested for its objectives, not distributed to members.

2. How is a Section 8 Company different from a Trust or Society?

While all three are non-profit structures, Section 8 companies:

• Have greater credibility due to the stricter regulatory framework of the Companies Act.
• Can more easily receive foreign funding if they comply with FCRA regulations.
• Offer limited liability to their members.

3. What are the benefits of registering a Section 8 Company?

• Separate Legal Entity: It has its own legal identity, distinct from its members.
• Limited Liability: Members are not personally liable for the company’s debts.
• Tax Benefits: Section 8 companies can get income tax exemptions (12A, 80G) and benefits under other tax laws.
• Credibility & Trust: Registration with the MCA enhances the company’s credibility with donors, partners, and the public.

4. What are the eligibility criteria for forming a Section 8 Company?

The company must:

• Be formed for promoting charitable objectives of general public utility.
• Intend to apply its profits (if any) or other income solely for promoting its objectives.
• Prohibit the payment of any dividend to its members.

5. What is the process for registering a Section 8 Company?

The key steps include:

• Name Reservation: Apply for a unique name that reflects the company’s objectives.
• Drafting MOA & AOA: These documents define the company’s objectives, powers, and rules.
• License Application: Apply to the Regional Director of the MCA for a license to operate as a Section 8 company.
• Incorporation: Upon approval, obtain a Certificate of Incorporation from the Registrar of Companies (ROC).

6. What are the essential documents required for registration?

• MOA (Memorandum of Association)
• AOA (Articles of Association)
• Declaration from promoters and directors
• Estimated income and expenditure statement
• Proof of address and identity of promoters and directors

7. How can The CauseConnect Team help me with forming a Section 8 Company?

We provide comprehensive assistance:

• Eligibility Assessment: We determine if your objectives are suitable for a Section 8 company.
• Name Reservation & MOA/AOA Drafting: We guide you through the naming process and draft legally sound MOA and AOA documents.
• License Application & Incorporation: We assist with compiling documents, filing the application, and obtaining the license and incorporation certificate.
• Post-Registration Compliance: We help with PAN, TAN, bank account opening, tax exemption applications (12A, 80G, etc.), FCRA registration (if needed), and annual compliance requirements (filings, meetings).

8. What are the ongoing compliance requirements for Section 8 Companies?

Key compliance obligations include:

• Holding annual general meetings (AGMs).
• Filing annual financial statements and returns with the MCA.
• Maintaining statutory registers.
• Complying with income tax regulations.
• Meeting FCRA requirements if receiving foreign funding.

We can help you stay compliant and avoid penalties.

9. What are the benefits of working with The CauseConnect Team?

• Expertise: Our team has in-depth knowledge of Section 8 company formation and compliance.
• Efficiency: We streamline the process, saving you time and effort.
• Peace of Mind: We ensure all legal requirements are met, minimizing your risk.

10. How much do your services cost?

We offer competitive and transparent pricing with tailored packages to suit different needs. Contact us for a free consultation and a personalized quote.

11. How do I get started with The CauseConnect Team?

Contact us today!

Contact us today!

Sincerely,

The CauseConnect Team
+91 8076222021

 WhatsApp: https://wa.me/918076222021

causeconnect@trustngoprojects.org

https://trustngoprojects.org/ngo-support/

https://trustngoprojects.org/professionals-support/
Trustngo Projects and Innovation
310, Wadhwa Business Center, D-288-289/10, Laxmi Nagar, Delhi – 110092 India