Overview of Section 8 Company Registration
A Section 8 company is a not-for-profit entity in India. 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 Uttar Pradesh offers some unique benefits. These entities enjoy tax exemptions and fewer regulatory requirements. Uttar Pradesh’s vibrant social sector makes it an ideal location for such organizations.
Section 8 companies in Uttar Pradesh contribute to social causes like education, women empowerment and healthcare. The state’s policies encourage non-profit initiatives. For instance, Uttar Pradesh’s NGO ecosystem aligns with schemes like the Uttar Pradesh Skill Development Mission and Beti Bachao, Beti Padhao. These programs support organizations focused on skill development and gender equality. By registering a Section 8 company in Uttar Pradesh, you tap into these opportunities.
Minimum Requirements for Section 8 Company Registration in Uttar Pradesh
To start Section 8 Company Registration in Uttar Pradesh, meet these requirements -
Two Directors - You need at least two directors for incorporation.
Two Members - A minimum of two members are required.
No Minimum Capital needed - No paid up capital is necessary.
Registered Office Proof - Submit a recent utility bill for the office address in Uttar Pradesh.
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.
Some Key Benefits of Section 8 Company Registration in Uttar Pradesh
Registering a Section 8 company in Uttar Pradesh offers several advantages -
Tax Exemptions -
Section 8 companies qualify for tax benefits under Sections 80G and 12A of the Income Tax Act, 1961. Donors can claim deductions on contributions. This encourages funding for your NGO in Uttar Pradesh. For example, donations to education focused NGOs in Uttar Pradesh align with state initiatives like Sarva Shiksha Abhiyan.
Enhanced Reputation -
A Section 8 company boosts your organization’s credibility. In Uttar Pradesh, non-profits organisations gain trust from stakeholders. The state’s large population values social initiatives, enhancing your NGO’s reputation.
Easier Fundraising -
Section 8 Company Registration in Uttar Pradesh simplifies fundraising. Non-profits organisations attract donations due to their social mission. Tax-deductible donations motivate donors. Uttar Pradesh’s active CSR programs, supported by companies in cities like Noida, Varanasi and Lucknow, provide funding opportunities.
Strong Governance -
Section 8 companies follow strict MCA regulations. This ensures transparency and accountability. In Uttar Pradesh, compliance builds trust with local communities and government bodies.
Reputable Status -
Your NGO gains recognition as a credible entity if registered under section 8 of the companies act. This helps in partnerships with state programs like UP Rani Laxmibai Mahila Evam Bal Samman Yojana.
Simple Incorporation -
The process for Section 8 Company Registration in Uttar Pradesh is straightforward. Online filing through MCA portals saves time.
Grant Eligibility -
Section 8 companies access grants from government and private bodies. In Uttar Pradesh, schemes like Mission Shakti and other state govt schemes support women focused NGOs.
Perpetual Existence -
Your company continues despite changes in directors or members. This ensures long term impact in Uttar Pradesh’s social sector.
Documents Required for Section 8 Company Registration in Uttar Pradesh
To register your Section 8 company in Uttar Pradesh, 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 having Uttar Pradesh Address (electricity, water, telephone or gas)
NOC/Rent agreement from the property owner
Steps for Section 8 Company Registration in Uttar Pradesh
Follow these steps for Section 8 Company Registration in Uttar Pradesh -
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 MCA Form SPICe+ Part A to reserve the name. CRC, Manesar processes name approvals. (Name and Incorporation both can be filed in Spice+ Part B)
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 Uttar Pradesh’s social welfare priorities, such as rural development or education.
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
The Registrar of Companies reviews your application. If satisfied, they issue a Section 8 license and Certificate of Incorporation. This completes your Section 8 Company Registration in Uttar Pradesh.
Uttar Pradesh-Specific Regulations and References
Section 8 Company Registration in Uttar Pradesh aligns with state policies. The state encourages NGOs to support initiatives like -
Uttar Pradesh Skill Development Mission -
NGOs focusing on vocational training can access state funding.
Mission Shakti -
Women empowerment Scheme it offer grants for Section 8 companies.
Smart City Projects -
Cities like Lucknow, Kanpur, Noida, Varanasi etc support NGOs in urban development.
Detailed Comparison of Trust, Society, and Section 8 Company in Uttar Pradesh
| Particulars | Trust | Society | Section 8 company |
|---|---|---|---|
| Governing Legislation | Governed by the Indian Trust Act, 1882. Applies uniformly across India, including Uttar Pradesh. | Governed by the Societies Registration Act, 1860, with Uttar Pradesh-specific amendments under the Uttar Pradesh Societies Registration Rules. | Governed by the Companies Act, 2013, regulated by the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC) in Kanpur for Uttar Pradesh. |
| Constitution Document | Trust Deed - A legal document outlining the trust’s objectives, trustees, and operational rules. Must be registered with the Sub-Registrar in Uttar Pradesh. | Bylaws - Defines the society’s objectives, membership, and governance structure. Filed with the Registrar of Societies in Lucknow. | Memorandum of Association (MOA) and Articles of Association (AOA) - Outline the company’s objectives and rules. |
| Registry Authority | Registrar of Trusts - In Uttar Pradesh, trusts are registered with the local Sub-Registrar under the state’s revenue department | Registrar of Societies - Located in Lucknow for Uttar Pradesh, overseeing society registrations and compliance. | Registrar of Companies (ROC) - The ROC, CRC Manesar handles Section 8 Company Registration in Uttar Pradesh and related compliances. |
| Minimum Members Required | At least 2 trustees are required to form a trust. No upper limit. | Minimum 7 members are required to form a society in Uttar Pradesh. No upper limit. | Minimum 2 directors/shareholders are required for Section 8 Company Registration in Uttar Pradesh. |
| Annual Compliance | No mandatory annual return filing. However, trusts must maintain accounts and may need audits for tax exemptions (e.g., 80G/12A). | Societies must file annual statements of affairs, including financials, with the Registrar of Societies in Lucknow. Non-compliance may lead to penalties. | Mandatory annual filings with the MCA, including Form MGT-7 (annual returns) and Form AOC-4 (financial statements). Uttar Pradesh ROC enforces strict compliance. |
| Preference in FCRA Registration | Low preference - Trusts face stricter scrutiny for Foreign Contribution (Regulation) Act (FCRA) approval due to limited transparency. | Low preference - Societies also face challenges in obtaining FCRA approval due to less streamlined processes. | High preference - Section 8 companies are preferred for FCRA registration in Uttar Pradesh, as they offer greater transparency and MCA oversight. |
| Transparency | Low - Trusts have minimal public disclosure requirements, which can reduce accountability. | Low - Societies have limited transparency, with filings only accessible to the Registrar of Societies in Uttar Pradesh. | High - Section 8 companies file public records with the MCA, ensuring transparency. Stakeholders in Uttar Pradesh can access company details online at mca portal. |
| Online Filing Facility | Not available - Trust registration and compliance involve physical submissions at the Sub-Registrar’s office in Uttar Pradesh, making it time-consuming. | Not available - Society filings in Uttar Pradesh require manual submissions to the Registrar of Societies in Lucknow, which is complex and slow. | Available - Section 8 Company Registration in Uttar Pradesh uses the MCA’s SPICe+ portal for online filings, streamlining registration and compliance. |
| Grants and Subsidies | Limited - Trusts in Uttar Pradesh have limited access to state grants. | Limited - Societies may access some state grants but face competition and bureaucratic hurdles in Uttar Pradesh. | Preferred - Section 8 companies are prioritized for grants under Uttar Pradesh schemes like Mission Shakti or UP Skill Development Mission. |
| 80G and 12A Registration | Possible - Trusts can apply for 80G and 12A tax exemptions with the Income Tax Department in Uttar Pradesh. | Possible - Societies can also apply for 80G/12A exemptions, though approval depends on consistent compliance with Income Tax Rules. | Possible - Section 8 companies easily secure 80G/12A exemptions, enhancing donor appeal in Uttar Pradesh’s active NGO sector. |
| Registration Period | 15–20 days - Trust registration in Uttar Pradesh involves document verification and physical submission, delaying the process. | 15–20 days - Society registration in Lucknow is slow due to manual processes and verification by the Registrar of Societies. | 5–7 days - Section 8 Company Registration in Uttar Pradesh is faster via the MCA’s online portal, processed by the CRC, Manesar. |
| Management Structure | Managed by trustees, who may lack formal governance training. No mandatory board meetings. | Managed by a governing body or committee, elected by members. Requires regular meetings as per bylaws. | Managed by a board of directors, adhering to MCA governance standards. Regular board meetings are mandatory. |
| Perpetual Existence | Exists perpetually unless dissolved by trustees or court order. Continuity depends on trust deed terms. | Exists perpetually but may face dissolution if members fail to comply with Societies Act. | Perpetual existence is ensured under the Companies Act, 2013, even with changes in directors or members. |
| Conversion Flexibility | Cannot be directly converted to a society. Can be converted into section 8 company by following the legal formalities. | Can be converted to a Section 8 company with approval from the Registrar of Societies and MCA. | 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 Uttar Pradesh for state-specific activities. | Limited to Uttar Pradesh unless registered as a national society. Multi-state operations require additional approvals. | Can operate across India with a single registration in Uttar Pradesh. |
| Compliance Costs | Low, as no mandatory annual filings are required. However, audits for tax exemptions may incur costs. | Moderate, due to annual filings and potential legal fees for compliance with Uttar Pradesh regulations. | Higher, due to mandatory MCA filings, audits, and professional fees for compliance with Companies Act, 2013. |
| Public Perception | Perceived as less formal, suitable for small-scale charitable activities in Uttar Pradesh. | Seen as community-driven but less professional than Section 8 companies. Common in Uttar Pradesh for local welfare groups. | Viewed as highly credible and professional, ideal for large-scale NGOs in Uttar Pradesh, especially for CSR and government partnerships. |
| State-Specific Considerations | In Uttar Pradesh, trusts must align with local revenue department rules for registration. Limited access to state schemes. | Societies in Uttar Pradesh face delays in Lucknow’s Registrar office. Less preferred for state-funded projects. | Section 8 Company Registration in Uttar Pradesh aligns with state initiatives like Mission Shakti and Smart City Projects, ensuring better funding access. |
Compliances for Section 8 Companies in Uttar Pradesh
After Section 8 Company Registration in Uttar Pradesh, adhere to these compliances -
Form INC-20A (Mandatory in case of Limited by shares companies)
File within 180 days of incorporation to confirm business commencement. Submit to the Kanpur 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 -
Section 8 Company needs to submit financial statements within 30 days of the Annual General meeting of the company. It Includes balance sheet, profit and loss, and cash flow statements.
DIN KYC -
Directors must submit their DIN KYC by September 30 each year. In case of non-compliance, MCA deactivates the DIN, requiring a ₹5,000 late fee.
Income Tax Return (ITR) -
File ITR annually to avoid penalties. Uttar Pradesh NGOs must align ITRs with 80G/12A benefits.
Frequently Asked Questions About Section 8 Company Registration in Uttar Pradesh
What is a Section 8 company in Uttar Pradesh?
A Section 8 company promotes public welfare, such as education, healthcare, women empowerment, livelihood generation. It operates under the provisions of Companies Act, 2013, and is ideal for NGOs in Uttar Pradesh.
How many members/directors are needed for Section 8 Company Registration in Uttar Pradesh?
You need at least two members/directors to register.
What are the benefits of Section 8 Company Registration in Uttar Pradesh?
Benefits include tax exemptions, credibility, and access to state grants like Mission Shakti.
Who issues licenses for Section 8 companies in Uttar Pradesh?
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 Uttar Pradesh raise public funds?
Yes, through donations and grants, subject to compliance with MCA, 80G/12A and FCRA regulations.
Can one Person Company be converted into a Section 8 company in Uttar Pradesh?
No,an OPC cannot be converted into a Section 8 company.
Can a Section 8 company change its objects?
Yes, with shareholder and Central Govt Approval.
What is the notice period for member meetings?
A minimum of 14 days’ notice is required for meetings.
Why one Choose My Legal Business LLP for Section 8 Company Registration in Uttar Pradesh?
My Legal Business LLP is a trusted consultant for Section 8 Company Registration in Uttar Pradesh. Our dedicated team streamlines the process. We ensure compliance with MCA and Uttar Pradesh’s state govt’s regulations. From DSC acquisition to ROC filings, we manage every step. Start your non-profit journey with us today.