Section 8 Company Registration Process

Section 8 Company Registration Process

What is Section 8 Company Registration in India?

An NGO can be registered as a Section 8 company under the Companies Act 2013 or as a trust under the Trust Act 1882 or as a society under the Societies Act 1860.Section 8 Company Registration is the process of incorporation of an NGO under the Companies Act 2013.

A section 8 Company can be registered for promoting Art, Science, Commerce, Technology, Sports, Education, Social Research, Social Welfare, Religion, Charity and Protection of Environment etc. A Section 8 Company can work anywhere in India after succesful completion of the registration process.

Documents for Section 8 Company Registration

Following documents are required for Section 8 Company registration:
  • PAN Card of the Directors and Shareholders
  • Aadhaar Card
  • Latest Bank Statement
  • Telephone Bill or Electricity Bill
  • Voter ID or Passport or Driving license
  • Passport size photograph of all the directors and shareholders
  • Copy of the Rental agreement, in case the property is on rent for the registered office
  • Benefits of Section 8 Company Registration

  • There are certain advantages of registering an NGO or NPO under Section 8 of Companies Act 2013. Some of them are as follows:
  • No minimum capital: There is no minimum capital requirement for a Section 8 Company Registration in India.

    Tax Benefits: There are numerous tax benefits under the Section 8 Company Registration in India.

    No Stamp Duty: No stamp duty is imposed on the incorporation of Section 8 Company in India as it is against the provision of the payment of stamp duty on the MoA and AoA of the private limited company.

  • Separate Legal Identity: Section 8 Company registration has a separate legal entity. It acquires a distinct legal identity from its members.

    Credibility: Section 8 Company has more credibility than any other form of a charitable organisation. It is under the strict provision of the Companies Act which requires a mandatory audit every year.

    Exemption to the donators: Under Section 80G, the exemption is granted to the donators if the section 8 company is registered under section 80G.

  • Section 8 Company Registration Eligibility Criteria

Eligibility criteria for a Section 8 company registration are as follows:

An Individual or HUF or limited Company is eligible to start a Section- 8 company registration in India.
Two or more person who will act as a shareholder or Director of the company should fulfill all the requirements and compliances of the Section 8 Company registration.
At least one of the directors shall be a resident of India. However, a firm may be a member of the company registered under this section.
The objective should be the promotion of sports, social welfare, the advancement of science and art, education and financial assistance to lower income groups.
The surplus generated must be used for meeting the principal objective of the section 8 company only.
Founders, members, and directors of the company cannot draw any remuneration in any form of cash or kind.
No profit should be distributed among the members and director of the company directly or indirectly
The company should have the clear vision and project plan for the next three years.
  • Process for Registering a Section 8 Company in India

  • The following process can be utilised for registering a section 8 company in India:
Process for Registering a Section 8 Company in India

Prepare DSC and file Name Approval

The very first step for Section 8 company registration is to prepare DSC. Apply for Digital Signature Certificate (DSC) as soon as possible. Section 8 companies should contain words like Foundation, Society, Association, Council, Club, charities, Academy, organisation, Federation, Institute, Chamber of Commerce, Development and many more.

Filing of Section 8 Incorporation Forms on MCA Portal

After getting approval from the regional director, we will proceed to file the section 8 company registration application with the requisite documents before ROC. Once all clarifications are provided to ROC, the ROC shall issue a Certificate of Incorporation along with a Company Identification Number (CIN). This would be carried out as per the requirements under SPICE plus (Spice +)

MoA and AoA file submission

Once you get the License, you need to draft the Memorandum of Association (MoA) and Article of Association (AoA) to file section 8 company registration applications.

PAN, TAN and Bank Account

You must have your PAN, TAN and bank account ready while going for Section- 8 Company registration in India.

Section 8 company registration in India is a class by itself. It is a non- profit organisation engaged in the social work for the welfare of the society and the country.

Section 8 company registration procedure is as follows-

Prepare DSC and file Name Approval

The very first step for Section 8 company registration is to prepare DSC. Apply for Digital Signature Certificate (DSC) as soon as possible.
Section 8 companies should contain words like Foundation, Society, Association, Council, Club, charities, Academy, organisation, Federation, Institute, Chamber of Commerce, Development and many more.

Apply for Section 8 Company registration license from Regional Director, MCA (INC-12)

After Name approval, we will apply for Section 8 company registration license from Regional director.

The regional director will review the objectives, plans and will grant a permit for Section 8 Company registration. RD usually takes 15 days to issue a license to operate as a section 8 company.

Filing of Section 8 Incorporation Forms on MCA Portal

After getting approval from the regional director, we will proceed to file the section 8 company registration application with the requisite documents before ROC.

Once all clarifications are provided to ROC, the ROC shall issue a Certificate of Incorporation along with a Company Identification Number (CIN).

MoA and AoA file submission

Once you get the License, you need to draft the Memorandum of Association (MoA) and Article of Association (AoA) to file section 8 company registration applications.

The Object of the company will be detailed in the MoA and the rules, and the by-laws will be mentioned in the AoA.

PAN, TAN and Bank Account

You must have your PAN, TAN and bank account ready while going for Section- 8 Company registration in India.

Created & Posted By Ravi kumar
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