Section 8 Company Registration in Punjab
A Section 8 Company is a non-profit entity in India governed by Section 8 of the Companies Act, 2013. It is regulated by the Ministry of Corporate Affairs (MCA) and operates with the principal objective of promoting charitable causes such as education, social welfare, healthcare, culture, and environmental protection. Unlike traditional companies, Section 8 companies do not distribute profits among their members; instead, they reinvest in the organization's social mission.
Punjab, with its dynamic agricultural economy, growing industrial sectors, and commitment to social development, offers a robust platform for NGOs and NPOs. The state encourages participation in schemes like Punjab Skill Development Mission, Mata Tripta Mahila Yojana, and Smart Village Campaign, making it an ideal place to establish a Section 8 Company.
Key Requirements for Section 8 Company Registration in Punjab
To register a Section 8 Company in Punjab, you need to meet the following criteria:
Minimum Two Directors: One director must be an Indian resident.
Minimum Two Shareholders: The directors can also act as shareholders.
No Capital Requirement: There is no prescribed minimum capital.
Registered Office in Punjab: A valid address proof such as an electricity bill is required.
No Objection Certificate (NOC): From the owner of the registered office premises.
Unique Name: Must not resemble any existing company or registered trademark.
Note: The office must comply with local Punjab Municipal Laws for verification during incorporation.
Benefits of Registering a Section 8 Company registration in Punjab
To register a Section 8 Company Registration in Punjab offers numerous advantages. Here’s a deep dive into the key benefits:
Tax Exemptions
Exemption under Sections 12A and 80G of the Income Tax Act allows donors to claim deductions, boosting fundraising efforts. This aligns with government-backed schemes like Sarbat Sehat Bima Yojana and Post Matric Scholarship Scheme.
Credibility and Recognition
Being governed by the Companies Act enhances transparency, governance, and public trust. NGOs registered as Section 8 companies are highly respected in Punjab's urban and rural societies.
Funding Access
Punjab-based NGOs can easily receive CSR funds, foreign grants (via FCRA), and state subsidies through programs like the Punjab State Social Welfare Board.
Structured Governance
Mandated board meetings and regulatory filings instil operational discipline and legitimacy.
Seamless Government Collaborations
Your NGO can work with state programs such as Punjab Backward Classes Land Development and Finance Corporation (BACKFINCO) and Mata Tripta Mahila Yojana with better access to grants and infrastructure.
Easy Online Filing
The MCA’s SPICe+ portal simplifies online registration without the need for physical submissions.
Documents Required for Section 8 Company Registration in Punjab
Here are the documents required for Section 8 Company Registration in Punjab:
For Directors and Members:
Passport-size Photograph
PAN Card Copy
Aadhaar Card / Voter ID / Driving License / Passport
Bank Statement / Utility Bill (Not older than 2 months)
For Registered Office:
Latest Electricity / Water / Gas Bill (With Punjab Address)
NOC from Property Owner
Rent Agreement (if applicable)
Our expert team helps you draft the MOA, AOA, INC-15 Declaration, and detailed financial projections tailored to your company’s objectives. We ensure all documents comply with MCA norms for a smooth registration process.
Step-by-Step Process for Section 8 Company Registration in Punjab
Follow these steps to complete Section 8 Company Registration in Punjab:
Obtain DSC (Digital Signature Certificate)
Get DSCs for all directors from MCA-approved vendors using KYC documents.
Name Reservation – SPICe+ Part A
Choose a unique name (e.g., “Foundation,” “Forum,” “Association”) and file SPICe+ Part A for approval. (Can be directly applied in Spice+ Part B)
Draft MOA and AOA
We help draft and file the Memorandum of Association (MOA) and Articles of Association (AOA) aligned with your social mission.
File SPICe+ Part B
File incorporation documents (including KYC, MOA, AOA, address proof, declarations, and utility bills) via the MCA portal.
Obtain License and Incorporation Certificate
On approval, you will receive:
- Section 8 License
- Certificate of Incorporation (COI)
- PAN and TAN
State-Specific Schemes Supporting Section 8 Company Registration in Punjab
Section 8 Companies in Punjab can align with these impactful state programs:
Punjab Skill Development Mission (PSDM)
This initiative focuses on providing vocational training and skill-building programs to youth and women, enabling them to become self-reliant and job-ready. Section 8 Companies can collaborate to implement training centers or community workshops.
Mata Tripta Mahila Yojana
A women-centric welfare scheme offering financial assistance, education, and livelihood support to underprivileged women across Punjab. NGOs working in women empowerment can benefit from government funding under this scheme.
Smart Village Campaign
This scheme promotes the development of rural infrastructure, sanitation, and digital inclusion. Section 8 Companies in Punjab can align their projects with this initiative for grants and CSR tie-ups.
Post Matric Scholarship Scheme
Offered to students belonging to SC/ST/OBC categories, this scheme encourages education by covering tuition fees and other expenses. Section 8 Companies involved in education can play a significant role in spreading awareness and facilitating enrollments.
Mission Tandarust Punjab
A public health mission promoting clean air, water, food safety, and fitness. NGOs working in healthcare, environment, or awareness campaigns can partner with the government for impactful outreach programs.
| Scheme Name | Objective |
|---|---|
| Punjab Skill Development Mission | Vocational training for youth and women |
| Mata Tripta Mahila Yojana | Women’s welfare and empowerment initiatives |
| Punjab Smart Village Campaign | Development of rural infrastructure and sanitation |
| Post Matric Scholarship Scheme | Financial aid for students from SC/ST/OBC communities |
| Mission Tandarust Punjab | Promotion of health and wellness across all districts |
Comparison: Trust vs Society vs Section 8 Company in Punjab
| Criteria | Trust | Society | Section 8 Company |
|---|---|---|---|
| Governing Law | Indian Trust Act, 1882 | Societies Registration Act, 1860 (Punjab amendment applies) | Companies Act, 2013 (national law) |
| Registration Authority | Sub-Registrar (under Revenue Dept., Punjab) | Registrar of Societies (Dept. of Industries & Commerce, Punjab) | MCA via Central Registration Centre (CRC), Manesar |
| Main Documents | Trust Deed | Memorandum and Rules & Regulations (Bylaws) | MOA and AOA |
| Minimum Members | 2 trustees | Minimum 7 managing committee members | Minimum 2 directors and shareholders |
| Legal Status | Not a separate legal entity | Not a complete legal entity, but recognized | Separate legal entity under Companies Act |
| Jurisdiction for Operations | Operates primarily within the state unless specified otherwise | Typically state-level unless registered nationally | Can operate across India from day one |
| Online Registration Facility | Physical submission only | Physical submission with Registrar in Punjab | Fully online via MCA SPICe+ |
| Ease of Formation | Simple and quick | Moderate | Detailed & MCA-regulated but efficient |
| Compliance Requirements | Low, mostly for tax benefits like 80G/12A | Moderate, includes annual meeting and statement filing | High – Annual return (MGT-7), Financials (AOC-4), DIN KYC, ITR |
| Tax Benefits (80G/12A) | Possible but harder to obtain due to lack of regulatory scrutiny | Possible with regular filings and inspections | Easily available, streamlined via MCA compliance |
| Audit Requirement | Mandatory if claiming 80G/12A or receiving government grants | Required for 80G/12A; optional otherwise | Mandatory audit annually under Companies Act |
| FCRA Eligibility | Rarely preferred due to low transparency | Possible but slow due to manual records | Highly preferred due to MCA registration and clear audit trails |
| Transparency Level | Low Limited public scrutiny | Medium -Registered documents available with Registrar | High -Public records on MCA portal ensure credibility |
| Perpetual Succession | Not assured unless clearly written in the Trust Deed | Exists but dependent on society rules | Guaranteed under Companies Act, continues irrespective of changes in members |
| Governance Structure | Trustees with discretionary power | Governing Body or Executive Committee elected by members | Board of Directors with defined responsibilities and reporting structure |
| Grants and State Funding Access | Limited - Often excluded due to lack of structured operations | Available but delayed due to bureaucratic approvals | Preferred - State and CSR bodies favor Section 8 companies |
| Public Perception | Informal - Suitable for small family-run or spiritual activities | Semi-formal -Better for community initiatives | Highly credible -Suitable for large-scale NGO operations |
| Conversion Possibility | Cannot convert into other forms easily | Can be converted into Section 8 Company with due process | Can convert to other companies with ROC approval |
| Ideal For | Spiritual, religious, family-run charities | Local clubs, cooperative groups, educational societies | Professional NGOs, large-scale CSR projects, social enterprises |
| Compliance Cost | Low | Moderate | Higher due to professional filing and audit requirements |
Post-Incorporation Compliance for Section 8 Company in Punjab
After Section 8 Company registration in Punjab, the following filings are mandatory:-
INC-20A
Declaration of commencement of business within 180 days. (Mandatory for Section 8 Companies with capital only)
MGT-7:
Annual return with company details (due 60 days after AGM).
AOC-4:
Financial statements (due 30 days after AGM).
DIN KYC:
Annual KYC of directors by Sept 30.
Income Tax Return (ITR):
File ITR annually to retain tax exemptions.
Some frequently Asked Questions About Section 8 Company Registration in Punjab
How long does it take for section 8 company registration in Punjab?
With proper documentation, Section 8 company registration in Punjab takes around 7–10 working days.
Do I need a physical office in Punjab?
Yes, a registered office address with proof is mandatory.
Can foreigners be directors in a Punjab-based Section 8 Company?
Yes, but at least one director must be an Indian resident.
What is the cost of registration?
The total cost for section 8 company registration in Punjab includes professional fees, DSC charges, and government filing fees. Our affordable packages cover all components.
Can a Section 8 Company in Punjab receive foreign donations?
Yes, after obtaining FCRA registration from the Ministry of Home Affairs.
Is it mandatory to have an office in Punjab to register a Section 8 Company there?
Yes, the registered office must be located in Punjab. You’ll need to submit utility bills and a NOC from the property owner during the incorporation process.
Can I convert my existing Society or Trust in Punjab into a Section 8 Company?
Yes, a Society can be converted into a Section 8 Company through legal procedures under section 8 company registration in Punjab. Trusts cannot be directly converted and must be freshly incorporated.
What are the advantages of getting 12A and 80G registration in Punjab?
Post section 8 company registration in Punjab, obtaining 12A provides tax exemption, while 80G helps attract donors by allowing tax deductions. This is especially useful for Punjab-based CSR initiatives.
Do I need to renew my Section 8 license or registration?
No, the Section 8 Company license is valid for life unless revoked due to non-compliance. However, 12A and 80G registrations must be renewed periodically (as per latest Income Tax rules).
Can a Section 8 Company in Punjab open multiple branches in other states?
Yes, once section 8 company registration in Punjab is completed, the company can expand and operate across India, subject to board resolutions and local laws.