To establish a Section 8 Company, certain documents need to be prepared and submitted. These include:

• Memorandum of Association (MoA): The MoA outlines the objectives, activities, and scope of the Section 8 Company.
• Articles of Association (AoA): The AoA defines the rules and regulations governing the internal management and operations of the company.
• Director Identification Number (DIN): The proposed directors of the Section 8 Company must obtain a unique DIN from the Ministry of Corporate Affairs (MCA).
• Digital Signature Certificate (DSC): Digital signatures are required for electronically signing various documents throughout the registration process.
• Address Proof: The company must provide address proof documents such as utility bills or rental agreements for the registered office address.

The process of forming a Section 8 Company involves the following steps:

• Obtaining Director Identification Number (DIN): Apply for DIN for all the proposed directors of the Section 8 Company.
• Digital Signature Certificate (DSC): Obtain DSC for all the proposed directors.
• Name Approval: Select a unique name for the Section 8 Company and apply for its approval with the Registrar of Companies (ROC).
• Drafting MoA and AoA: Prepare the MoA and AoA in compliance with the requirements of Section 8 of the Companies Act, 2013.
• Filing Incorporation Documents: Prepare and submit the necessary incorporation documents, including the MoA, AoA, and other prescribed forms, to the ROC.
• Payment of Fees: Pay the prescribed fees along with the incorporation documents.
• License Application: Apply for a license under Section 8 of the Companies Act, 2013, by submitting the required documents and declarations.
• Certificate of Incorporation: Upon successful review and verification, the ROC issues the Certificate of Incorporation, officially establishing the Section 8 Company.

To register a Section 8 Company, the following eligibility criteria must be met:

• The company must be formed for promoting art, science, commerce, charity, religion, or any other socially beneficial objective.
• The profits of the company must be applied towards promoting its objectives and not distributed to its members.

• Charitable Objectives: Section 8 Companies are formed with the primary aim of serving charitable or socially beneficial purposes, making a positive impact on society.
• Limited Liability: Members of a Section 8 Company enjoy limited liability, safeguarding their personal assets.
• Tax Exemptions: Section8 Companies are eligible for various tax exemptions, including income tax benefits, donations exemption under Section 80G, and exemption from stamp duty for certain transactions.
• Greater Credibility: Section 8 Companies are often perceived as more trustworthy and credible by donors, government bodies, and stakeholders due to their non-profit nature and commitment to social welfare.

• Stringent Compliance Requirements: Section 8 Companies are subject to strict compliance obligations, including filing annual financial statements, conducting regular board meetings, and maintaining proper accounting records.
• Restricted Profit Distribution: Section 8 Companies are prohibited from distributing profits among their members. All income generated must be utilized for achieving the company’s charitable objectives.
• Licensing Process: The process of obtaining a license under Section 8 of the Companies Act can be time-consuming and involves detailed scrutiny by regulatory authorities.
• Limited Fundraising Options: Section 8 Companies may face challenges in raising funds as they cannot issue shares or offer financial returns to investors. They heavily rely on donations and grants.