Overview of Section 8 Company Registration in Bihar
A Section 8 Company is a non-profit organisation in India, formed under Section 8 of the Companies Act, 2013, to promote charitable and social objectives. They aim to promote arts, commerce, science, education, charity, or other public welfare activities. Any profits earned must support these objectives. Section 8 Company Registration in Bihar offers unique benefits for non-profits. These entities enjoy tax exemptions and fewer regulatory requirements. Bihar’s growing social sector makes it an ideal location for such organizations.
Section 8 companies in Bihar contribute to social causes like education, healthcare, and rural development. The state’s policies encourage non-profit initiatives. For example, Bihar’s NGO ecosystem aligns with schemes like the Bihar Skill Development Mission and Mukhyamantri Kanya Utthan Yojana. These programs support organizations focused on skill development and women’s empowerment. By registering a Section 8 company in Bihar, you tap into these opportunities.
Minimum Requirements for Section 8 Company Registration in Bihar
To start Section 8 Company Registration in Bihar, meet these basic requirements:
Two Directors: You need at least two directors for incorporation.
Two Members: A minimum of two members are required.
No Minimum Capital: No paid-up capital is necessary.
Registered Office Proof: Submit a recent utility bill for the office address in Bihar.
NOC for Office Premises: Provide a No Objection Certificate from the property owner.
Unique Name: Choose a distinct name not similar to existing companies or trademarks.
Key Benefits of Section 8 Company Registration in Bihar
Registering a Section 8 company in Bihar offers several important advantages:
Tax Exemptions:
Section 8 Companies can get tax benefits by registering under Sections 80G and 12A of the Income Tax Act. Donors can claim deductions on contributions. This encourages funding for your NGO in Bihar. For example, donations to education focused NGOs align with Bihar’s Student Credit Card Scheme.
Enhanced Reputation:
A Section 8 company boosts your organization’s credibility. In Bihar, non-profits gain trust from stakeholders. The state’s diverse population values social initiatives, enhancing your NGO’s reputation.
Easier Fundraising:
Section 8 Company Registration in Bihar simplifies fundraising. Non-profits attract donations due to their social mission. Tax-deductible donations motivate donors. Bihar’s growing CSR initiatives, supported by companies in cities like Patna and Gaya, provide funding opportunities.
Strong Governance:
Section 8 companies follow strict MCA regulations. This ensures transparency and accountability. In Bihar, compliance builds trust with local communities and government bodies.
Reputable Status:
Getting your NGO registered builds credibility, making it easier to collaborate with government schemes like the Mukhyamantri Balika Protsahan Yojana.
Simple Incorporation:
The process for Section 8 Company Registration in Bihar is very simple. Online filing through MCA portals saves time.
Grant Eligibility:
Section 8 companies access grants from government and private bodies. In Bihar, schemes like Jeevika support rural focused NGOs.
Perpetual Existence:
Your company continues despite changes in directors or members. This ensures long term impact in Bihar’s social sector.
Documents/Details Required for Section 8 Company Registration in Bihar
To register your Section 8 company in Bihar, submit these documents:
From Shareholders and Directors:
Passport-size photographs
PAN card copy
Aadhaar card, voter ID, driving license, or passport copy
Recent bank statement or any utility bill
For Registered Office:
Latest utility bill (electricity, water, telephone or gas) with Bihar address
Rent agreement/NOC from the property owner
Steps for Section 8 Company Registration in Bihar
One must Follow these steps for Section 8 Company Registration in Bihar:
Obtain Digital Signature Certificate (DSC)
Secure DSCs from MCA authorized vendors. Provide photographs, PAN, Aadhaar, email, and phone number. DSCs enable secure online filing.
Reserve a Unique Company Name
Choose a unique name for your NGO. It must include terms like “Foundation” or “Association.” Avoid names similar to existing entities. Use Form SPICe+ Part A to reserve the name. CRC, Manesar, Haryana office of the MCA processes name approvals for Bihar. (Name and incorporation both can be filed with SPice+ Part B form)
Draft Registration Documents
After name approval, we draft the MOA, AOA, projected income, expenditure statements, and declarations. Directors and members sign these documents. Ensure the MOA aligns with Bihar’s social welfare priorities, such as education or rural empowerment.
File Form SPICe+ Part B
Submit Form SPICe+ Part B to the MCA. Attach the MOA, AOA, office address proof, NOC, KYC documents, and Form INC-15. We handle this step for you.
Receive License and Incorporation Certificate
Central Registration Center, Manesar reviews your application. If satisfied, they issue a Section 8 license and Certificate of Incorporation. This completes your Section 8 Company Registration in Bihar.
Bihar Specific Regulations and References
In Bihar, Section 8 Company Registration in Bihar aligns with state policies. The state encourages NGOs to support initiatives like:
Bihar Skill Development Mission:
NGOs focusing on vocational training can access state funding.
Mukhyamantri Kanya Utthan Yojana:
Women and girls education and empowerment programs offer grants for Section 8 companies.
Smart City Projects:
Cities like Patna, Gaya, Samastipur and Bhagalpur support NGOs in urban development.
Comparison of Trust, Society, and Section 8 Company in Bihar in Detail.
| Particulars | Trust | Society | Section 8 company |
|---|---|---|---|
| Governing Legislation | Governed by the Indian Trust Act, 1882. Applies uniformly across India, including Bihar. | Governed by the Societies Registration Act, 1860, with Bihar-specific amendments under the Bihar Societies Registration Rules. | Governed by the Companies Act, 2013, regulated by the MCA and the Registrar of Companies (ROC) in Patna for Bihar. |
| Constitution Document | Trust Deed: Outlines the trust’s objectives, Name and details of trustees, and rules. Registered with the Sub-Registrar in Bihar. | Bylaws: Defines the society’s objectives, membership, and governance. Filed with the Registrar of Societies in Patna. | MOA and AOA: Outline the company’s objectives and rules and regulations. Filed with the ROC, CRC, Manesar. |
| Registry Authority | Registrar of Trusts: Trusts are registered with the local Sub-Registrar office in Bihar under the state’s revenue department. | Registrar of Societies: Located in Patna, overseeing society registrations and compliance in Bihar. | Registrar of Companies (ROC): CRC, Manesar handles Section 8 Company Registration in Bihar and ROC patna handles compliances related matters. |
| Minimum Members Required | At least 2 trustees. No upper limit. | Minimum 7 members. No upper limit. | Minimum 2 directors/shareholders are Required for Section 8 Company Registration in Bihar. |
| Annual Compliance | No mandatory annual return filing. Audits required for 80G/12A exemptions. | Annual statements of affairs, including financials, filed with the Registrar of Societies in Patna. | Mandatory MCA filings: Form MGT-7 (annual returns) and Form AOC-4 (financial statements). Patna ROC enforces compliance. |
| Preference in FCRA Registration | Low: Trusts face strict scrutiny for FCRA approval due to limited transparency. | Low: Societies face challenges in obtaining FCRA approval due to manual processes. | High: Section 8 companies are preferred for FCRA registration in Bihar due to MCA oversight and transparency. |
| Transparency | Low: Minimal public disclosure reduces accountability. | Low: Filings are only accessible to the Registrar of Societies in Patna. | High: Section 8 Company files Public records filed with the MCA ensure transparency. Stakeholders in Bihar can access details online. |
| Online Filing Facility | Not available: Physical submissions at the Sub-Registrar’s office in Bihar are time-consuming. | Not available: Manual submissions to the Registrar of Societies in Patna are complex. | Available: Section 8 Company Registration in Bihar uses the MCA’s portal for streamlined filings. |
| Grants and Subsidies | Limited: Limited access to Bihar state grants unless aligned with schemes like Jeevika. | Limited: Societies face bureaucratic hurdles for state grants in Bihar. | Preferred: Prioritized for grants under Bihar schemes like Mukhyamantri Kanya Utthan Yojana or Bihar Skill Development Mission. |
| 80G and 12A Registration | Possible: Application possible with the Income Tax Department in Bihar, but rigorous. | Possible: Approval depends on compliance with societies act and income tax regulations. | Possible: Easily secure 80G/12A exemptions, enhancing donor appeal in Bihar. |
| Registration Period | 15–20 days: Physical document verification delays the process in Bihar. | 15–20 days: Manual processes in Patna office of Registrar slow down society registration. | 5–7 days: Section 8 Company Registration in Bihar is faster via the Ministry of Corporate Affairs’s online portal. |
| Management Structure | Managed by trustees, no mandatory board meetings. Governance may lack formality. | Managed by a governing body, elected by members. Regular meetings required. | Managed by a board of directors of the company, adhering to MCA Rules and Regulations. Regular board meetings are mandatory. |
| Perpetual Existence | Perpetual unless dissolved by trustees or court order. Depends on trust deed. | Perpetual but may face dissolution if non-compliance with the provisions of Societies Act. | Perpetual existence ensured under the Companies Act, 2013, despite changes in directors or members. |
| Compliance Costs | Low, but audits for tax exemptions may incur costs. | Moderate, due to annual filings and legal fees for compliance in Bihar. | Higher, due to mandatory MCA filings, audits, and professional fees. |
| Public Perception | Seen as less formal, suitable for small-scale charitable activities in Bihar. | Community-driven but less professional. Common for local welfare groups in Bihar. | Highly credible and professional, ideal for large-scale NGOs in Bihar, especially for CSR and government partnerships. |
| State-Specific Considerations | Must align with Bihar’s revenue department rules. Limited access to state schemes. | Face delays in Patna’s Registrar office. Less preferred for state-funded projects. | Section 8 Company Registration in Bihar aligns with initiatives like Jeevika and Smart City Projects, ensuring better funding access. |
Compliances for Section 8 Companies in Bihar
After Section 8 Company Registration in Bihar, one must adhere to these compliances:
Form INC-20A (Mandatory only in case of Limited by shares company):
File within 180 days of incorporation to confirm business commencement. Submit to the Patna ROC.
Form MGT-7:
File annual returns with mca within 60 days of the Annual General Meeting (AGM). Include share capital and member details.
Form AOC-4:
Need to submit financial statements of the company within 30 days of the AGM. Include balance sheet, Income expenditure and cash flow statements.
DIN KYC:
All Directors of the Section 8 company must submit their KYC details by September 30 each year. Non-compliance leads to deactivation of the DIN, requiring a ₹5,000 late fee.
Income Tax Return (ITR):
File ITR annually to avoid penalties. Bihar based NGOs must align ITRs with 80G/12A benefits.
Frequently Asked Questions About Section 8 Company Registration in Bihar
What is a Section 8 company in Bihar?
A Section 8 Company works for social welfare activities like education, healthcare, or charity. It is registered under the Companies Act, 2013, and is a suitable option for NGOs operating in Bihar.
How many members are needed for Section 8 Company Registration in Bihar?
You need at least two members to register a section 8 company in bihar.
Why should you register a Section 8 Company in Bihar?
Benefits include tax exemptions, credibility, and access to state grants like Mukhyamantri Kanya Utthan Yojana.
Who issues licenses for Section 8 companies in Bihar?
The Registrar of Companies, CRC, Manesar issues licenses.
Must the company name include specific words?
Yes, include terms like “Foundation” or “Council” as per the Companies (Incorporation) Rules, 2014.
Can a Section 8 company in Bihar raise public funds?
Yes, through donations and grants, subject to compliance with MCA and Income tax and FCRA regulations.
Can an OPC be converted into a Section 8 company in Bihar?
A one-person company is not allowed to be converted into a Section 8 company.
Can a Section 8 company change its objects?
Yes, with shareholder and ROC approval.
What is the notice period for member meetings?
A minimum of 14 days’ notice is required for meetings.
How does My Legal Business LLP assist with Section 8 Company Registration in Bihar?
We handle registration, document drafting, and compliance. Our expert team ensures a smooth process from registration to compliance after registration.