What Section 8 Companies Mean
A Section 8 company is a corporation created to further the arts, commerce, science, research, education, sports, charity, social welfare, religion, or environmental conservation under the Companies Act of 2013. These businesses don't pay dividends to shareholders; instead, they reinvest their earnings to further their goals. This structure is perfect for anyone looking to start a legally recognized non-profit business if they're looking for Section 8 company registration in Delhi.
The rationale behind establishing a Section 8 company
Emphasizing social welfare, education, the arts, and environmental sustainability, the Companies Act of 2013 defines a Section 8 company as one for people or organizations with a non-profit goal. For those starting charitable or community-oriented projects, Section 8 company registration in Delhi is an excellent option since it just calls for two directors and has no minimum paid-up capital requirements.Characteristics of Section 8 Businesses
Key Features of Section 8 Companies
Section 8 companies are commonly structured as NGOs and must comply with the Companies Act, 2013. Key features include:
- Profits cannot be distributed among members.
- All earnings must be used to advance the company’s non-profit goals.
- High transparency and accountability, supported by strict compliance.
- Evolved from Section 25 companies of the earlier Companies Act, 1956.
These features make Section 8 company registration in Delhi highly suitable for anyone committed to long-term, impactful social work.
Documentation and Procedure for Incorporation of a Section 8 Company
The incorporation process includes:
- Obtaining Digital Signature Certificates (DSC) and Director Identification Numbers (DIN)
- Filing necessary forms on the MCA portal
- Submitting core documents like:
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Identity and address proof of directors and subscribers
If you're planning a Section 8 company registration in Delhi, having these documents ready can significantly speed up the process.
Section 8 Company Fundraising
Although these companies cannot distribute profits, they can raise funds through:
- Public donations
- Domestic and foreign contributions (with FCRA registration)
- Equity or grant-based funding
This makes Section 8 company registration in Delhi financially sustainable for charitable activities without compromising the non-profit status.
Why Choose E-Filing Buddy for Your Section 8 Company Registration?
If you want to register a Section 8 company in Delhi, you can trust E-Filing Buddy. We offer full help, from paperwork to following the law, through an easy and dependable online process. Our skilled staff makes sure you follow all the rules set by the law, so you can focus on your goal while we take care of the paperwork.