Digital Signature Certificate (DSC)

• Obtain DSC for all proposed directors to file forms electronically.

Director Identification Number (DIN)

• DIN is mandatory for all proposed directors. Apply for DIN if not already obtained.

Registered Office Address

• Provide proof of a registered office, such as rent agreements or utility bills (not older than 2 months).

Objective Statement

• Prepare a clear and detailed statement of the company’s purpose and its commitment to reinvest all profits in its objectives.

PAN and TAN Application

• Apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).

Bank Account Opening

• Open a bank account in the company’s name to manage transactions.

Section 12A and 80G Registration

• Apply for tax exemption certificates to attract donors and CSR funding.

To establish a Section 8 Company under the Companies Act, 2013, the following eligibility conditions must be met:

1. Purpose/Objective:

The company must be formed with an objective to:

• Promote charitable or social welfare activities such as education, science, arts, religion, environmental protection, or any other public benefit activities.
• Ensure profits or income are reinvested for the stated objectives and not distributed to members.

2. Number of Members:

• Minimum Members: At least two individuals are required for a private Section 8 Company and three for a public Section 8 Company.
• There is no upper limit on the number of members.

3. Legal Status of Members:

• Individuals or entities (including partnerships, companies, or NGOs) can act as members.
• All directors must be Indian residents, though foreign nationals can also be appointed with proper compliance.

4. Directors:

• Minimum of two directors for a private company and three directors for a public company.
• All directors must hold a Director Identification Number (DIN).

5. Capital Requirements:

There is no minimum capital requirement, but sufficient capital must be declared in the application to achieve the intended objectives.

6. Approval from Authorities:

• A license must be obtained from the Registrar of Companies (ROC) after providing proof that the company is formed for charitable purposes.
• The company must comply with Income Tax Act provisions for availing exemptions under Sections 12A and 80G.

7. No Profit Distribution:

The company’s income cannot be distributed as dividends. It must be reinvested in the organization’s objectives.

Each director and member of the proposed Section 8 Company must provide the following:

1. Identity Proof

• PAN Card (mandatory for Indian citizens).
• Passport (for foreign nationals).

2. Address Proof (any one of the following):

• Aadhaar Card.
• Voter ID.
• Passport
• Driving License.
• Latest utility bill (electricity, telephone, or gas bill) not older than 2 months.

3. Residential Proof (any one of the following):

• Bank Statement.
• Mobile bill or utility bill (not older than 2 months).

4. Passport-Size Photograph:

• Recent, clear passport-sized photographs of all directors.

5. Director Identification Number (DIN):

• Directors must apply for a DIN if not already obtained.

6. Digital Signature Certificate (DSC):

• Each director must possess a DSC to sign electronic forms.