Section 8 Company Registration in Rajasthan
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 functions with the primary objective of promoting charitable causes such as education, social welfare, healthcare, environmental protection, and art and culture. Unlike traditional companies, Section 8 Companies do not distribute profits among their members but reinvest them in furthering their mission.
Rajasthan, with its deep-rooted culture and growing focus on inclusive development, offers a promising environment for NGOs and non-profit ventures. The state government supports a range of initiatives such as the Mukhyamantri Yuva Sambal Yojana, Rajasthan Social Security Pension Scheme, and Jal Swavlamban Abhiyan, which encourage social welfare and empowerment. These factors make Section 8 Company Registration in Rajasthan an ideal choice for individuals and groups committed to social impact and sustainable development.
Key Requirements for Section 8 Company Registration in Rajasthan
To proceed with Section 8 Company Registration in Rajasthan, the following key requirements must be fulfilled:
Minimum Two Directors: At least one director must be a resident of India.
Minimum Two Shareholders: The same individuals can act as both directors and shareholders.
No Capital Requirement:There is no mandatory minimum capital to register a Section 8 Company.
Registered Office in Rajasthan: You must provide a valid address proof, such as an electricity bill or property tax receipt.
No Objection Certificate (NOC): Required from the owner of the premises where the registered office will be located.
Unique Company Name:The name should be unique and must not resemble any existing company or registered trademark.
Note: The registered office address must comply with the local municipal regulations in Rajasthan for verification purposes during the incorporation process.
Benefits of Section 8 Company Registration in Rajasthan
Registering a Section 8 Company in Rajasthan offers numerous advantages for individuals and organizations aiming to create a meaningful social impact. Here’s a detailed overview of the key benefits:
Tax Exemptions
Organizations registered under Section 8 Company are eligible for tax exemptions under Sections 12A and 80G of the Income Tax Act. Donors to such companies can claim deductions, which enhances fundraising efforts. These exemptions align well with Rajasthan’s push for welfare through schemes like the Rajasthan Social Security Pension Scheme and Chief Minister Free Medicine Scheme.
Credibility and Recognition
Being incorporated under the Companies Act, 2013 ensures transparency, legal credibility, and structured compliance. Section 8 Companies in Rajasthan gain trust and recognition from stakeholders, donors, and government agencies alike.
Access to Diverse Funding
Section 8 Companies in Rajasthan can tap into CSR funds, foreign contributions (under FCRA), and government grants. Institutions such as Rajasthan State Industrial Development and Investment Corporation (RIICO) and Rajasthan Mission on Livelihoods (RMoL) often support such initiatives through grants and public-private partnerships.
Structured Governance
Under Section 8 Company Registration in Rajasthan, organizations are required to maintain proper governance through board meetings, regular filings, and audits. This ensures accountability and builds confidence among partners and funders.
Collaborations with State Government Initiatives
Section 8 Companies in Rajasthan can partner with government-backed welfare and development programs such as the Mukhyamantri Jal Swavlamban Abhiyan, Palanhar Yojana, and Rajasthan Grameen Ajeevika Vikas Parishad. These collaborations open doors to funding, training, and logistical support.
Seamless Online Incorporation
The Ministry of Corporate Affairs (MCA) enables hassle-free registration through the SPICe+ online portal. This simplifies the entire process of Section 8 Company Registration in Rajasthan, reducing the need for physical documentation and minimizing delays.
Documents Required for Section 8 Company Registration in Rajasthan
To initiate Section 8 Company Registration in Rajasthan, you must submit the following documents:
For Directors and Members:
Passport-size photographs
PAN card copy
Aadhaar Card / Voter ID / Driving License / Passport(any one)
Bank Statement / Utility Bill (Not older than 2 months)
For Registered Office in Rajasthan:
Latest Electricity / Water / Gas Bill (With Rajasthan Address)
No Objection Certificate (NOC) from the property owner
Rent Agreement (if the premises are rented)
Step-by-Step Process for Section 8 Company Registration in Rajasthan
Here’s a simplified breakdown of how to register a Section 8 Company in Rajasthan:
Obtain Digital Signature Certificate (DSC)
All proposed directors must acquire a DSC from an MCA-approved certifying authority using valid KYC documents.
Name Reservation - SPICe+ Part A
Select a unique name (preferably ending with “Foundation,” “Association,” or “Forum”) and file SPICe+ Part A via the MCA portal. Name reservation can also be done directly in SPICe+ Part B.
Draft MOA and AOA
We prepare a Memorandum of Association (MOA) and Articles of Association (AOA) that reflect your social and charitable objectives, as required under Section 8 Company Registration in Rajasthan.
File SPICe+ Part B
Submit incorporation documents including:
- KYC details of directors
- Proof of registered office
- MOA, AOA, declarations, and utility bills
- All submissions are made through the MCA portal.
Obtain License and Certificate of Incorporation
Upon approval by the Registrar of Companies (RoC), you will receive:
- Section 8 License
- Certificate of Incorporation (COI)
- PAN and TAN issued by the Income Tax Department
State-Specific Schemes Supporting Section 8 Company Registration in Rajasthan
Section 8 Company Registration in Rajasthan offers non-profit organizations the opportunity to engage with various state-sponsored welfare and development initiatives. Below are some key Rajasthan government programs that support NGOs and charitable ventures:
Mukhyamantri Yuva Sambal Yojana
This scheme provides unemployment allowances and skill training to educated youth. Section 8 Companies focusing on employment generation and vocational training can collaborate with the government for program delivery.
Rajasthan Social Security Pension Scheme
Offers financial assistance to the elderly, widows, and persons with disabilities. NGOs working for the welfare of vulnerable communities can partner for outreach and beneficiary identification.
Chief Minister Jal Swavlamban Abhiyan (CMJSY)
A massive water conservation initiative aimed at sustainable rural development. Section 8 Companies focused on environmental protection and water management can access grants and infrastructure support under this mission.
Palanhar Yojana
This scheme supports the upbringing of orphaned and vulnerable children in family-like environments. Section 8 Companies working in child welfare, education, or community care can collaborate with the Department of Social Justice.
Rajasthan Grameen Ajeevika Vikas Parishad (RGAVP)
Focused on promoting self-help groups (SHGs) and livelihood opportunities in rural areas. NGOs and Section 8 Companies can contribute to training, microfinance awareness, and SHG formation.
Schemes Supporting Section 8 Company Registration in Rajasthan
| Scheme Name | Objective |
|---|---|
| Mukhyamantri Yuva Sambal Yojana | Skill training and unemployment allowance |
| Rajasthan Social Security Pension Scheme | Financial aid for elderly, widows, and disabled individuals |
| CM Jal Swavlamban Abhiyan (CMJSY) | Water conservation and rural sustainability |
| Palanhar Yojana | Foster care and child support |
| RGAVP (Grameen Ajeevika Vikas Parishad) | Rural SHG development and livelihood promotion |
By strategically aligning your Section 8 Company Registration in Rajasthan with these welfare programs, you can gain access to government partnerships, CSR funding opportunities, and broader public impact.
Detailed Comparison of Trust, Society, and Section 8 Company in Uttar Pradesh
| Criteria | Trust | Society | Section 8 company |
|---|---|---|---|
| Governing Law | Indian Trust Act, 1882 | Societies Act, 1860 | Companies Act, 2013 (Central Law) |
| Registration Authority | Sub-Registrar (Revenue Dept., Rajasthan) | Registrar of Societies (Department of Cooperation, Rajasthan) | MCA via Central Registration Centre (CRC), Manesar |
| Main Documents | Trust Deed | Memorandum and Rules & Regulations (Byelaws) | MOA and AOA |
| Minimum Members | 2 trustees | Minimum 7 governing body members | Minimum 2 directors and shareholders |
| Legal Status | Not a separate legal entity | Semi-recognized; limited legal status | Fully recognized legal entity under Companies Act |
| Jurisdiction for Operations | Generally operates within Rajasthan unless stated | Typically state-bound unless nationally registered | Nationwide jurisdiction from day one |
| Online Registration Facility | Physical submission only | Physical filing with Registrar in Rajasthan | Fully online via MCA’s SPICe+ portal |
| Ease of Formation | Simple and quick | Moderate effort, state-level processing | Detailed but efficient via MCA - ideal for Section 8 Company Registration in Rajasthan |
| Compliance Requirements | Low - mainly for tax exemptions | Moderate - includes meetings, filing of accounts | High - mandatory filings: MGT-7, AOC-4, DIN KYC, ITR |
| Tax Benefits (80G/12A) | Possible, but involves long scrutiny | Possible with proper record keeping and filings | Easily available with streamlined MCA processes |
| Audit Requirement | Mandatory if availing tax exemption or grants | Required if applying for 80G/12A | Mandatory annual audit under Companies Act |
| FCRA Eligibility | Not preferred due to transparency issues | Possible, but slow and document-heavy | Highly preferred due to transparency, regulation, and audit trail |
| Transparency Level | Low - limited to internal records | Medium - some public accessibility via registrar | High - all filings visible on MCA portal, enhancing public trust |
| Perpetual Succession | Not guaranteed unless stated | Exists but subject to society rules | Guaranteed under Companies Act |
| Governance Structure | Trustees with discretionary authority | Governing Body elected by members | Board of Directors with defined roles and accountability |
| Grants and State Funding Access | Limited -often excluded from official support | Available, but can be delayed | Preferred for grants, CSR funding, and state collaborations under Section 8 Company Registration in Rajasthan |
| Public Perception | Difficult to convert into other structures | Convertible into Section 8 Company with due process | Convertible to other company types with ROC approval |
| Conversion Possibility | Difficult to convert into other structures | Convertible into Section 8 Company with due process | Convertible to other company types with ROC approval |
| Ideal For | religious, family-run charities | Clubs, educational societies, cooperatives | Professional NGOs, large CSR-driven initiatives, social enterprises |
| Compliance Cost | Low | Moderate | Higher - requires professional compliance services, but ensures greater benefits |
Post-Incorporation Compliance for Section 8 Company in Rajasthan
After successful incorporation, every company undergoing Section 8 Company Registration in Rajasthan must fulfill certain statutory post-registration compliances to maintain active status and avail tax and CSR benefits. Below are the essential filings and formalities:
INC-20A -Declaration of Commencement of Business
Must be filed within 180 days of incorporation. (Applicable only if the Section 8 Company is registered with share capital.)
MGT-7 - Annual Return
To be filed within 60 days from the date of the Annual General Meeting (AGM), detailing shareholding structure, compliance status, and directorship information.
AOC-4 - Filing of Financial Statements
Due within 30 days of the AGM. This includes the balance sheet, income & expenditure statement, auditor's report, and director’s report.
DIN KYC - Director KYC Filing
All directors must file their annual DIN KYC by September 30 each year to avoid deactivation and penalties.
Income Tax Return (ITR):
Annual ITR filing is mandatory to retain tax exemptions under Section 12A and 80G and to maintain compliance with the Income Tax Act.
Frequently Asked Questions about Section 8 Company Registration in Rajasthan
How long does it take for Section 8 Company registration in Rajasthan?
With complete and accurate documentation, Section 8 Company Registration in Rajasthan typically takes around 7-10 working days through the MCA portal.
Do I need a physical office in Rajasthan?
Yes, to proceed with Section 8 Company Registration in Rajasthan, you must have a registered office address within the state. Valid address proof, such as a utility bill and a No Objection Certificate (NOC) from the owner, is required.
Can foreigners be directors in a Rajasthan-based Section 8 Company?
Yes, foreign nationals can be appointed as directors, but at least one director must be an Indian resident, in accordance with MCA norms.
Can a Section 8 Company in Rajasthan receive foreign donations?
Yes, after obtaining FCRA registration from the Ministry of Home Affairs, your Section 8 Company can legally accept foreign contributions.
Is it mandatory to have an office in Rajasthan to register a Section 8 Company?
Yes, a registered office located in Rajasthan is mandatory for the registration process. You'll need to submit a recent utility bill and a NOC from the property owner.
Can I convert my existing Society or Trust in Rajasthan into a Section 8 Company?
- A Society registered in Rajasthan can be converted into a Section 8 Company through a defined legal procedure.
- A Trust, however, cannot be directly converted. A new Section 8 Company must be incorporated.
What are the advantages of getting 12A and 80G registration in Rajasthan?
Post Section 8 Company Registration in Rajasthan, applying for 12A grants income tax exemption, while 80G status allows donors to claim deductions. These are vital for securing CSR funding and state welfare grants.
Do I need to renew my Section 8 license or registration?
The Section 8 license is valid for a lifetime. However, 80G and 12A registrations require periodic renewal to continue availing of tax exemptions.
Can a Section 8 Company in Rajasthan open branches in other states?
Yes. Once Section 8 Company Registration in Rajasthan is complete, the company can expand operations across India, provided a board resolution is passed and necessary filings are made with the ROC.