Overview of Section 8 Company Registration
A Section 8 company in India is an organization established for charitable or social purposes, where profits are used to support its objectives rather than being distributed to members. It operates under Section 8 of the Companies Act, 2013. The Ministry of Corporate Affairs (MCA) regulates these companies. 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 Jharkhand offers unique benefits for non-profits. These entities enjoy tax exemptions and fewer regulatory requirements. Jharkhand’s growing social sector makes it an ideal location for such organizations.
Section 8 companies in Jharkhand contribute to social causes like education, healthcare, and tribal welfare. The state’s policies encourage non-profit initiatives. For example, Jharkhand’s NGO ecosystem aligns with schemes like the Jharkhand Skill Development Mission and Mukhyamantri Sukanya Yojana. These programs support organizations focused on skill development and women’s empowerment. By registering a Section 8 company in Jharkhand, you tap into these opportunities.
Minimum Requirements for Section 8 Company Registration in Jharkhand
To start Section 8 Company Registration in Jharkhand, meet these requirements -
Two Directors - You need at least two directors for incorporation.
Two Members/shareholders - 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 Jharkhand.
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 Advantages of Registering a Section 8 Company in Jharkhand
Registering a Section 8 company in Jharkhand offers several benefits-
Tax Exemptions -
Section 8 companies are eligible for tax exemptions and benefits by obtaining registrations under Sections 80G and 12A of the Income Tax Act. Donors can claim deductions on contributions. This encourages funding for your NGO in Jharkhand. For example, donations to education-focused NGOs align with Jharkhand’s Sarva Shiksha Abhiyan initiatives.
Enhanced Reputation -
A Section 8 company boosts your organization’s credibility. In Jharkhand, non-profit organizations gain trust from stakeholders. The state’s tribal and rural communities value social initiatives, enhancing your NGO’s reputation.
Easier Fundraising -
Section 8 Company Registration in Jharkhand simplifies fundraising. Non-profits attract donations due to their social mission. Tax-deductible donations motivate donors. Jharkhand’s growing CSR initiatives, supported by companies in cities like Ranchi and Jamshedpur, provide funding opportunities.
Strong Governance -
Section 8 companies follow strict MCA regulations. This ensures transparency and accountability. In Jharkhand, compliance builds trust with local communities and government bodies.
Reputable Status -
Your NGO gains recognition as a credible entity. This helps in partnerships with state programs like Mukhyamantri Kanya Vivah Yojana.
Simple Incorporation -
The process for Section 8 Company Registration in Jharkhand is very simple. Online filing through the MCA portal of govt. saves time.
Grant Eligibility -
Section 8 companies access grants from government and private bodies. In Jharkhand, schemes like JOHAR support rural-focused NGOs.
Perpetual Existence -
Your company continues despite changes in directors or members. This ensures long-term impact in Jharkhand’s social sector.
List of Documents Needed for Section 8 Company Registration in Jharkhand
To register your Section 8 company in Jharkhand, 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 utility bill
For Registered Office -
Latest utility bill (electricity, water,telephone or gas) with Jharkhand address
NOC/Rent Agreement from the property owner
We draft additional documents like the Memorandum of Association (MOA) and Articles of Association (AOA). In Jharkhand, ensure the office address complies with local municipal rules. For example, properties in urban areas like Ranchi may require verification under the Jharkhand Municipal Act, 2011.
Steps for Section 8 Company Registration in Jharkhand
Follow these steps for Section 8 Company Registration in Jharkhand -
Obtain Digital Signature Certificate (DSC)
Obtain Digital Signature Certificates (DSCs) from MCA-approved vendors. You’ll need to provide your photograph, PAN, Aadhaar, email ID, and mobile number. DSCs are essential for secure submission of forms and documents online.
Reserve a Unique Company Name
Select a distinct and meaningful name for your NGO, ensuring it includes words like “Foundation,” “Association,” or similar. The name should not resemble any existing organization. To reserve the name, file Form SPICe+ Part A. For NGOs in Jharkhand, name approval is handled by the Central Registration Centre (CRC) at Manesar.
Draft Registration Documents
Once the name is approved, we prepare key documents, including the Memorandum of Association (MOA), Articles of Association (AOA), projected income and expenditure statements, and required declarations. These documents must be signed by the proposed directors and members. While drafting the MOA, ensure it reflects Jharkhand’s development priorities, such as tribal welfare, education, healthcare, or other social welfare objectives.
File Form SPICe+ Part B
File Form SPICe+ Part B with the Ministry of Corporate Affairs (MCA), along with the required attachments — MOA, AOA, address proof for the registered office, NOC from the premises owner, KYC documents of directors, and Form INC-15 declaration. Our team takes care of this process on your behalf.
Receive License and Incorporation Certificate
The Central Registration Centre (CRC) in Manesar examines your application. Once they are satisfied with the documents and compliance, they issue the Section 8 License along with the Certificate of Incorporation. With this, your Section 8 Company Registration in Jharkhand is successfully completed.
Jharkhand-Specific Regulations and References
Section 8 Company Registration in Jharkhand aligns with state policies. The state encourages NGOs to support initiatives like -
Jharkhand Skill Development Mission -
NGOs focusing on vocational training can access state funding.
Mukhyamantri Sukanya Yojana -
Women empowerment programs offer grants for Section 8 companies.
JOHAR (Jharkhand Opportunities for Harnessing Rural Growth) -
Supports NGOs focused on rural development and livelihoods.
Detailed Comparison of Trust, Society, and Section 8 Company in Jharkhand.
| Particulars | Trust | Society | Section 8 company |
|---|---|---|---|
| Governing Legislation | Governed by the Indian Trust Act, 1882. Applies uniformly across India, including Jharkhand. | Governed by the Societies Registration Act, 1860, with Jharkhand-specific amendments under the Jharkhand Societies Registration Rules. | Governed by the Companies Act, 2013, regulated by the MCA and the Registrar of Companies (ROC) in Ranchi for Jharkhand. |
| Constitution Document | Trust Deed - Outlines the trust’s objectives, trustees, and rules. Registered with the Sub-Registrar in Jharkhand. | Bylaws - Defines the society’s objectives, membership, and governance. Filed with the Registrar of Societies in Ranchi. | MOA and AOA - Outline the company’s objectives and rules. Filed with the ROC, CRC, Manesar. |
| Registry Authority | Registrar of Trusts - Trusts are registered with the local Sub-Registrar in Jharkhand under the state’s revenue department. | Registrar of Societies - Located in Ranchi, overseeing society registrations and compliance in Jharkhand. | Registrar of Companies (ROC) - The Ranchi ROC handles Section 8 Company Registration in Jharkhand and related compliances. |
| Minimum Members Required | At least 2 trustees. No upper limit. | Minimum 7 members. No upper limit. | Minimum 2 directors/shareholders for Section 8 Company Registration in Jharkhand. No upper limit. |
| 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 Ranchi. | Mandatory MCA filings - Form MGT-7 (annual returns) and Form AOC-4 (financial statements). Ranchi 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 Jharkhand due to MCA oversight and transparency. |
| Transparency | Low - Minimal public disclosure reduces accountability unless 80G/12A registered. | Low - Filings are only accessible to the Registrar of Societies in Ranchi. | High - Public records filed with the MCA ensure transparency. Stakeholders in Jharkhand can access details online. |
| Online Filing Facility | Not available - Physical submissions at the Sub-Registrar’s office in Jharkhand are time-consuming. | Not available - Manual submissions to the Registrar of Societies in Ranchi are complex. | Available - Section 8 Company Registration in Jharkhand uses the MCA’s SPICe+ portal for streamlined filings. |
| Grants and Subsidies | Limited - Limited access to Jharkhand state grants unless aligned with schemes like JOHAR. | Limited - Societies face bureaucratic hurdles for state grants in Jharkhand. | Preferred - Prioritized for grants under Jharkhand schemes like Mukhyamantri Sukanya Yojana or Jharkhand Skill Development Mission. |
| 80G and 12A Registration | Possible - Application possible with the Income Tax Department in Jharkhand, but rigorous. | Possible - Approval depends on compliance with Jharkhand regulations. | Possible - Easily secure 80G/12A exemptions, enhancing donor appeal in Jharkhand. |
| Registration Period | 15–20 days - Physical document verification delays the process in Jharkhand. | 15–20 days - Manual processes in Ranchi slow down society registration. | 5–7 days - Section 8 Company Registration in Jharkhand is faster via the MCA’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, adhering to MCA standards. Regular board meetings mandatory. |
| Perpetual Existence | Perpetual unless dissolved by trustees or court order. Depends on trust deed. | Perpetual but may face dissolution if non-compliant with Jharkhand’s Societies Act. | Perpetual existence ensured under the Companies Act, 2013, despite changes in directors or members. |
| Conversion Flexibility | Cannot be directly converted to a society or Section 8 company. Requires dissolution and re-registration. | Can be converted to a Section 8 company with Registrar and MCA approval. | Can be converted to other company types under the Companies Act, 2013, with ROC approval. |
| Geographical Scope | Can operate across India but requires local registration in Jharkhand for state-specific activities. | Limited to Jharkhand unless registered as a national society. Multi-state operations need approvals. | Can operate across India with a single registration in Jharkhand, managed by the Ranchi ROC. |
| Compliance Costs | Low, but audits for tax exemptions may incur costs. | Moderate, due to annual filings and legal fees for compliance in Jharkhand. | Higher, due to mandatory MCA filings, audits, and professional fees. |
| Public Perception | Seen as less formal, suitable for small-scale charitable activities in Jharkhand. | Community-driven but less professional. Common for local welfare groups in Jharkhand. | Highly credible and professional, ideal for large-scale NGOs in Jharkhand, especially for CSR and government partnerships. |
| State-Specific Considerations | Must align with Jharkhand’s revenue department rules. Limited access to state schemes. | Face delays in Ranchi’s Registrar office. Less preferred for state-funded projects. | Section 8 Company Registration in Jharkhand aligns with initiatives like JOHAR and Smart City Projects, ensuring better funding access. |
Compliances for Section 8 Companies in Jharkhand
After Section 8 Company Registration in Jharkhand, adhere to these compliances -
Form INC-20A (Mandatory for those companies only which registered as limited by shares):
File within 180 days of incorporation to confirm business commencement. Submit to the Ranchi ROC.
Form MGT-7:
File annual returns within 60 days of the Annual General Meeting (AGM). Include share capital and member details.
Form AOC-4:
Submit financial statements within 30 days of the AGM. Include balance sheet, profit and loss, and cash flow statements.
DIN KYC:
Directors must submit KYC details by September 30 annually. Non-compliance deactivates the DIN, requiring a ₹5,000 late fee.
Income Tax Return (ITR):
File ITR annually to avoid penalties. Jharkhand NGOs must align ITRs with 80G/12A benefits.
Frequently Asked Questions About Section 8 Company Registration in Jharkhand
What is a Section 8 company in Jharkhand?
A Section 8 company promotes public welfare, such as education or charity. It operates under the Companies Act, 2013, and is ideal for NGOs in Jharkhand.
How many members are needed for Section 8 Company Registration in Jharkhand?
You need at least two members to register.
What are the benefits of Section 8 Company Registration in Jharkhand?
Benefits include tax exemptions, credibility, and access to state grants like Mukhyamantri Sukanya Yojana.
Who issues licenses for Section 8 companies in Jharkhand?
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 Jharkhand raise public funds?
Yes, through donations and grants, subject to compliance with MCA and FCRA regulations.
Can an OPC become a Section 8 company in Jharkhand?
No, a one-person company cannot 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 Jharkhand?
My Legal Business LLP is a trusted consultant for Section 8 Company Registration in Jharkhand. Our dedicated team streamlines the process. We ensure compliance with MCA and Jharkhand regulations. From DSC acquisition to ROC filings, we manage every step. Start your non-profit journey with us today!