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How to Start a Section 8 Company Registration? How to Registered Section 8 Company?

how to start a section 8 company registration

Before getting complete information about the “Section 8 Company Registration“, you should know about society. Under which act should section 8 company be registered? You will get full information here. Stay tuned with us and learn about your company registration.

An NGO stands for the non-government organization that has an intention of doing charitable work. Any NGO can get an NGO Registration in India under any of the following acts by law:- In this article, we will discuss How to Register an NGO Under Section 8 of Companies Act in India?

In this article though, we’ll be explaining how you can do an NGO Registration under section 8 of the Company’s Act of 2013.

[TABLE OF CONTENT]
Section 8 Company Registration
Eligibility

Benefits of Section 8 Company
Documents Required
Important point
The Steps of the Process of NGO Registration
Number of Forms Required for Registration
Section 8 Procedure for the incorporation of a company

Section 8 Company Registration

Section 8 The procedure and requirements of the company are set out for a limited company. Including all the rights and obligations that come with such a limited company. This is the only aspect where they are of different types, such as a Section 8 company cannot use the words “Section 8” or “Limited” in its name.

Eligibility

  1. Commerce
  2. Science
  3. Sports
  4. Research
  5. Education
  6. Social Welfare
  7. Religion
  8. Charity
  9. Protection of Environment

Benefits of Section 8 Company

Being an NGO or a Non-Profit Organization does not mean that the company cannot make profit or income. This simply means that the company can earn income but the promoters do not benefit from those benefits. Cannot distribute profit among promoters. All proceeds must be applied to promote the commodity.

Nevertheless, some exemptions and benefits have been provided for NGOs and NPO u/s 8 of the Companies Act 2013. There are also several tax exemptions for such companies. Even donors who contribute to the Section 8 company are eligible to claim tax exemption against these donations.

Advantages of Section 8 Company

Disadvantages of Section 8 Company

Documents Required

For Directors / ShareholdersFor Registered Office
Copy of PAN CardOwnership Proof (House Tax etc.)
Aadhaar CardUtility Bill (Electricity Bill, Gas Bill)
Address Proof (Bank Statement, Electricity Bill, Telephone Bill)NOC (from the owners – of the premises is rented)
2 Passport Sized Photographs 

Important point

The mandatory requirements for starting a Section 8 company are as follows:

Minimum Requirement

Charitable Objects

Management Team

Companies Act, 2013

MoA & AoA

Voting Rights

Income tax

GST Registration

Conversion

The Steps of the Process of NGO Registration:-

Purpose of NGO – Section 8 Company

Here the main objective of setting up a non-government organization under Section 8 company is to promote their non-profit objectives. Such as trade, commerce, arts, charity, education, religion, environmental protection, social welfare, sports, research etc.

The profits or income received through these works of social welfare in the establishment of the company will also be applied to promote the objectives of the company. These generated profits are not intended to be shared as dividends among the members of a company established as an NGO.

To get an NGO registration online in India, you must have at least 2 directors. It is a requirement under the Section 8 Companies Act of 2013 for the incorporation of a company as a private limited. Now if it is incorporated as a public limited company, there will be no limit for members to apply. On top of this, there is also no minimum requirement of paid-up capital, such as when obtaining an NGO registration under Section 8 of the Companies Act of 2013. Now, let us see the prerequisites for the registration process of an NGO.

Pre-Requisites to the NGO Registration

DSC

Start getting a digital signature or DSC for short. This is required when filling the online form. Most online registration forms are signed with a digital signature. To get DSC you can apply to agencies which are government certified and will issue DSC for you. Basically, you will get a digital signature certificate. The process of obtaining a DSC is variable with agencies. You can get a digital signature for class 2 or class 3 for this purpose. These categories are some categories of digital signatures. The difference between the two is that a person’s class 2 class digital signatures are verified against their already verified data. Whereas in case of class 3 category, you have to present yourself to the registration authority and prove your identity.

DIN

Next, apply for DIN. DIN is an abbreviation for Director’s Identification Number. You have to apply for the alleged directors of your company. Allotment of applications for DIN should be done through DIR-3. You will basically have to attach your PAN card number, proof of identity along with self-attested copies of the required documents along with proof of your residential address. Otherwise these forms can be verified by a Chartered Accountant or Company Secretary. All are presented collectively to the MCA or Ministry of Corporate Affairs through the MCA portal. NGOs are the forms used for registration once submitted.

Number of Forms Required for Registration

Name of the formPurpose of the Form
INC 1Name Approval
INC 7Application for Incorporation of Company
INC 8Declaration
INC 9An affidavit from each director and subscriber
INC 12Application for License
INC 13Memorandum of Association
INC 14Declaration from a practising Chartered Accountant
INC 15Declaration from each person making the application
INC 16License to incorporate as Section 8 company
INC 22The situation of Registered Office
DIR 2Consent of Directors
DIR 3Application to ROC to get DIN
DIR 12Appointment of Directors

Section 8 Procedure for the incorporation of a company

Step – 1: Section 8 Obtain DSC of proposed directors of the company. After the DSC is received, file Form DIR-3 with the ROC to obtain the DIN.

Step – 2: After the DIR-3 is approved, the ROC will allocate a DIN to the proposed directors.

Step – 3: File Form INC-1 with the ROC to apply for the company name. A total of 6 names can be applied in order of preference, one of which will be allocated based on availability.

Step – 4: After approval, file INC-12 with the ROC to apply for a license for a Section 8 company.

Documents to be attached with INC-12:

Step – 5: After the form is approved, a license will be issued under section 8 in Form INC-16.
Step – 6: After obtaining the license, file SPICE Form 32 with the ROC for incorporation with the following attachments:

If the ROC is satisfied with the forms submitted, it issues a Certificate of Incorporation with a unique company identification number (CIN).

For other registration-related questions, you can comment on the box below. Our top experts will provide you with the best possible solution.

Best of Luck!!!

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