Understanding Section 8 Companies
A Section 8 Company is a not-for-profit entity registered under Section 8 of the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA). These organizations function solely for charitable and developmental objectives such as education, healthcare, environmental protection, rural upliftment, livelihood promotion, women empowerment, cultural preservation, and other welfare-oriented activities. Any surplus generated is reinvested in the company’s mission and cannot be distributed among its members.
Introduction to Section 8 Company Registration in Assam
Section 8 Company Registration in Assam offers several advantages, including tax benefits, enhanced public trust, and opportunities to collaborate with state-backed welfare programmes. Assam is known for its strong community-driven culture, expanding development initiatives, and government commitment toward social and economic upliftment.
Many Section 8 companies in Assam are actively working in areas like education, public health, rural development, skilling, environmental conservation, and women empowerment. The state’s welfare ecosystem is strengthened by prominent government schemes such as the Orunodoi Scheme, Arundhati Gold Scheme, Swami Vivekananda Assam Youth Empowerment Scheme (SVAYEM), Chief Minister’s Shishu Seva Scheme, Assam Micro Finance Incentive and Relief Scheme (AMFIRS), and the Pragyan Bharati Scheme. These initiatives focus on financial inclusion, education support, youth empowerment, livelihood creation, and welfare for vulnerable communities.
Establishing a Section 8 Company in Assam enables you to align with these impactful programmes and contribute meaningfully to the state’s inclusive and sustainable development agenda.
Essential Criteria for Section 8 Company Registration in Assam
Minimum Directors & Members
Minimum 2 directors and 2 shareholders are required where an individual can act as both director and shareholder and at least 1 director must be an Indian resident.
Charitable Objective
Objectives must be exclusively charitable, including education, healthcare, environment, rural development, social welfare, etc.
No Profit Distribution
Profits cannot be distributed to members and all surplus must be reinvested into charitable activities.
Digital Signatures (DSC)
All directors must have a valid DSC for filing MCA forms.
Director Identification Number (DIN)
Directors must hold a DIN or can apply during incorporation through SPICe+.
Name Requirements
Name must reflect charitable purpose and acceptable suffixes include Foundation, Forum, Association, Council, Welfare Society, Trust etc.
Registered Office in Assam
It must have a valid registered office address in Assam with address proof + NOC (if required).
Section 8 License Requirement
It must obtain a Section 8 License from MCA after submitting charitable intent, activity plan, and financial projections.
Advantages of Section 8 Company Registration in Assam
High Credibility
Section 8 Companies are recognized under the Companies Act, 2013. In Assam, they enjoy strong public trust, helping build partnerships and attract donors across the state.
Tax Benefits
Section 8 Companies are eligible for income tax exemptions, allowing more funds to be utilized for welfare and community development initiatives in Assam.
Limited Liability
Members’ liability is limited, protecting their personal assets while they support charitable and developmental activities.
No Minimum Capital Requirement
Section 8 Companies in Assam can be registered with no minimum capital, offering financial flexibility during initial operations.
Government & CSR Funding Eligibility
Assam’s active CSR ecosystem and welfare-driven state programmes make these companies suitable for grants, government schemes, and CSR collaborations.
Separate Legal Identity
The entity operates as an independent legal body, simplifying contracts, asset ownership, and compliance processes in Assam.
Exemption from “Company” Suffix
Section 8 Companies are allowed to use names like Foundation, Association, Forum, Council, Trust, etc., instead of “Pvt Ltd” or “Ltd.”
Strong Governance Framework
Mandatory compliance ensures transparency and accountability, improving long-term organizational stability and donor confidence.
Alignment with State Welfare Policies
Assam’s development-focused schemes in education, health, rural upliftment, women empowerment, agriculture, and tribal welfare offer rich collaboration opportunities.
Documents Required for Section 8 Company Registration in Assam
For Directors & Shareholders
Passport-size photographs: Recent coloured photograph of all proposed directors and members.
PAN Card: Mandatory identity proof for all Indian nationals.
Aadhaar Card / Voter ID / Driving Licence / Passport: Any one valid government-issued ID for identity and address verification.
Latest Bank Statement / Utility Bill: It should be recent (within 2 months) and used for verifying the residential address of directors.
For Registered Office in Assam
Electricity Bill / Water Bill / Property Tax Receipt: Current utility bill showing the Assam address of the proposed registered office.
NOC from Property Owner: Consent letter from the owner authorizing use of the premises as the registered office.
Rent Agreement / Lease Deed (if applicable): It is required if the office premises are rented or leased.
Additional Documents for Registration
Draft MOA & AOA: Memorandum and Articles of Association drafted as per Section 8 guidelines.
INC-15 Declaration: Declaration by promoters affirming the non-profit objectives of the company.
Digital Signature Certificate (DSC): Required for e-filing during Section 8 Company Registration in Assam.
Process for Section 8 Company Registration in Assam
Obtain Digital Signature Certificate (DSC)
The first step in Section 8 Company Registration in Assam is acquiring DSCs for all proposed directors. These are required for filing online forms on the MCA portal.
Reserve the Company Name
Apply for name approval through SPICe+ Part A. Choose a unique name ending with terms like Foundation, Association, Council, or Forum, ensuring it does not conflict with existing entities.
Draft MOA & AOA
Prepare the Memorandum of Association and Articles of Association outlining the charitable objectives. All documents must align with Section 8 norms and Assam state welfare priorities if applicable.
File SPICe+ Part B
Submit SPICe+ Part B along with the MOA, AOA, DSCs, INC-15 declaration, KYC documents, and registered office proofs to the Ministry of Corporate Affairs.
Verification by CRC
The Central Registration Centre reviews all documents and filings. Any clarification, if required, must be responded to promptly.
Issue of License & Incorporation Certificate
Upon approval, MCA issues the Section 8 license and Certificate of Incorporation. This completes the Section 8 Company Registration in Assam, enabling the NGO to begin its operations legally.
Compliance Requirements for Section 8 Companies in Assam
| Compliance | Requirement | Description |
|---|---|---|
| Form INC-20A | Commencement of Business | Must be filed within 180 days of incorporation to confirm that the company has commenced operations (applicable if the company is limited by shares). |
| Form MGT-7 | Annual Return Filing | Section 8 Companies in Assam must file an annual return within 60 days of conducting the Annual General Meeting, detailing members, directors, and governance information. |
| Form AOC-4 | Financial Statement Filing | File financial statements (Balance Sheet, Income & Expenditure, Cash Flow, Notes to Accounts) within 30 days of the AGM. |
| DIR-3 | Annual Director KYC | Each director must complete DIN KYC every year by September 30. Failure results in DIN deactivation and a penalty of ₹5,000 for reactivation. |
| Income Tax Return (ITR) | Annual Filing | Section 8 Companies must file their annual ITR on time to maintain compliance and preserve tax-exemption benefits (including 12A/80G, if obtained). |
| CSR Reporting (If Applicable) | CSR Compliance | If the company receives or contributes CSR funds, it must comply with CSR reporting norms under the Companies Act. |
| Board Meetings & AGM | Statutory Meetings | Conduct minimum board meetings, maintain minutes, and hold an Annual General Meeting as per the Companies Act requirements. |
| Maintenance of Books & Records | Statutory Registers | Maintain proper books of accounts, member registers, financial records, and statutory documents at the registered office in Assam. |
Frequently Asked Questions
What is a Section 8 company?
A Section 8 company promotes social good, such as education, healthcare, or philanthropy, under the Companies Act, 2013, making Section 8 Company registration in Assam ideal for NGOs.
How many persons are required for Section 8 Company registration in Assam ?
A minimum of two members are required for Section 8 Company registration in Assam.
What are the key benefits of Section 8 Company registration in Assam?
Section 8 Company registration in Assam offers benefits including tax exemptions under Sections 80G and 12A, enhanced trustworthiness, simplified fundraising, and access to government grants like the Assam Skill Development Mission and Chief Minister's Samagra Gramya Unnayan Yojana schemes.
Who is authorized to issue licenses to Section 8 companies?
The Central Registration Centre (CRC) in Manesar issues licenses for Section 8 Company registration in Assam.
What words must be included in the name of a Section 8 company?
Yes, for Section 8 Company registration in Assam, terms like Foundation, Association, Federation, or Council must be included in the company name, as per the Companies (Incorporation) Rules, 2014.
Can a Section 8 company raise funds from the public?
Yes, after Section 8 Company registration in Assam, the company can raise funds through donations and grants, subject to MCA, Income Tax, and FCRA regulations.
Can an OPC be converted into a Section 8 Company?
No, an OPC cannot be converted in to a Section 8 company as both serve different purposes - OPCs are for profit-making while Section 8 Company registration in Assam focuses on non-profit activities.
Can a Section 8 company alter its objectives?
Yes, after Section 8 Company registration in Assam, the company can alter its objectives with prior approval from the Regional Director and by filing necessary forms with the ROC, ensuring the amended objectives remain charitable in nature.
What is the notice period required for conducting meetings?
A minimum of 14 days' notice is required for conducting meetings in a Section 8 Company after completing Section 8 Company registration in Assam.
Can a Section 8 Company in Assam receive foreign funding?
Yes, after Section 8 Company registration in Assam, the company can receive foreign contributions after obtaining FCRA (Foreign Contribution Regulation Act) registration. Due to their MCA-regulated structure and transparency, Section 8 Companies are preferred for FCRA approval compared to trusts or societies in Assam.
Can a Section 8 Company in Assam collaborate with local government schemes?
Absolutely. After Section 8 Company registration in Assam, companies can partner with state initiatives like the Assam Skill Development Mission, Pradhan Mantri Awaas Yojana-Gramin, and Jal Jeevan Mission. These collaborations provide funding opportunities and enable NGOs to contribute to Assam's skill development, rural housing, and water supply sectors.
Can founders of a Section 8 Company in Assam draw salaries?
Yes, after Section 8 Company registration in Assam, directors and employees can receive reasonable remuneration for services rendered, as per MCA guidelines. However, profits cannot be distributed as dividends and must be reinvested into the organization's charitable objectives in Assam.
Can a Section 8 Company registered in Assam operate across other cities in the state?
Yes, after Section 8 Company registration in Assam, the company can operate throughout the state and across India. While the registered office remains in Assam under the respective ROC jurisdiction, the company can establish branch offices in Guwahati, Dibrugarh, Silchar, Jorhat, or any other location to expand its social welfare activities.
Can educational institutions in Assam convert into Section 8 Companies?
Yes, existing educational trusts or societies in Assam can undergo Section 8 Company registration in Assam with proper approvals from the Registrar of Societies and the Assam ROC. This conversion enhances credibility, improves access to CSR funding from Assam's thriving tea, oil, and tourism sectors, and ensures better compliance with MCA regulations for educational NGOs.
How does My Legal Business LLP assist with Section 8 Company registration in Assam?
My Legal Business LLP is your trusted partner for Section 8 Company registration in Assam. Our experienced team ensures a hassle-free process, handling everything from DSC procurement and name approval to MCA filings, ROC compliance, and tax exemption applications. We manage all documentation, government liaison, and post-registration compliance for Section 8 Company registration in Assam, allowing you to focus on your non-profit mission while we take care of the legal formalities.