How Much Time and Cost Does It Take to Complete NGO Registration as a Section 8 Company?

NGO Registration

The first big step in starting a nonprofit or philanthropic group in India is to an NGO Registration. Section 8 Company Registration under the Companies Act, 2013 is one of the most popular ways for organizations to set up their business. But how long does it take? And how much does it cost?

We’ll break down everything in this article, including how long it takes to set up a Sec 8 Company, how much it costs, and how 12A Registration for a Section 8 Company can help you save money on taxes.

What is the process of registering an NGO?

The legal way to start a nonprofit organization in India is through NGO Registration. The basic purpose is to start a group that helps society in some way, such as through education, healthcare, the environment, animal welfare, women’s empowerment, and so on.

In India, there are three primary types of structures for NGOs:

  • Trust
  • People
  • Company under Section 8

Section 8 Company Registration is the most reliable and well-organized way to do this. Why? It is trustworthy in the eyes of funders, government bodies, and the public since the Ministry of Corporate Affairs (MCA) regulates it and it follows company-like rules.

What does it mean to be a Section 8 Company?

A Section 8 Company is a nonprofit business that is registered under Section 8 of the Companies Act, 2013. It is made up of:

  • To support education, science, art, charity, or social welfare
  • With no plans to share the proceeds
  • To put revenues back into the business for its goals

So, when you talk about registering an NGO through a Section 8 Company Incorporation, you’re making sure that your social work is lawful.

How long does it take to register an NGO as a Section 8 Company?

Depending on how quickly you finish each step and how well the paperwork is handled, it normally takes between 25 and 40 business days to register a Section 8 company.

Step by step Timeframe:

1. Get a Digital Signature Certificate (DSC)1 to 2 days

2. Get a Director Identification Number (DIN)1–2 days

3. Get MCA’s approval for the name (via SPICe+).Three to five days

4 Filling out the SPICe+ Form for incorporation takes 5 to 7 days.

5. Drafting and approving the MOA and AOA: 2–4 days

6. License from MCA under Section 8: 7–10 days

7. Certificate of Incorporation sent out in 2–3 days

In general, it takes take 3 to 6 weeks to fully register an NGO under the Sec 8 Company Incorporation process.

How Much Does It Cost to Register a Section 8 Company?

The price of registering an NGO as a Section 8 Company depends on whether you do it yourself or employ pros. Here’s a breakdown:

1. Fees from the government (about):

  • Approval of Name: ₹1,000
  • Filing SPICe+, MOA, and AOA: Nothing for NGOs
  • PAN and TAN: ₹70–₹100

The total amount the government charges is ₹1,000 to ₹1,200.

2. Fees for Professionals: 

If you hire a CA, CS, or legal expert to help you with Section 8 Company Registration, the fees can be anything from ₹8,000 to ₹25,000, depending on the city and the consultant.

3. Extra Costs: Getting documents notarized

  • Printing out papers
  • If you need to, you can pay for courier rates.

So, the total cost of starting a Sec 8 Company is usually between ₹9,000 and ₹30,000.

Why it’s important for a Section 8 company to get 12A registration

Once your NGO is registered as a Section 8 Company, you need to apply for 12A Registration. This is necessary to get out of paying income tax.

Advantages of registering as a Section 8 company under 12A:

  • You don’t have to pay taxes on the money your NGO makes.
  • You can now apply for grants and donations.
  • As a real organization, donors can trust you more.
  • If you want to file for an 80G exemption for donors, you have to do this.

You should register for 12A right after you finish registering for Section 8 Company. The Income Tax Department gives it out, and it normally takes 2 to 4 weeks if all the paperwork is in order.

Documents Needed to Register a Section 8 Company

To start a Section 8 Company, you’ll need the following:

  • PAN Card for each director
  • Aadhaar card, passport, or voter ID
  • The most recent utility statement for the office address (electricity bill)
  • Property owner must give a No Objection Certificate (NOC)
  • Photos the tear-off size
  • Directors’ email and phone numbers
  • Suggested name for the NGO
  • Mission and goal statement

To make sure the NGO Registration procedure goes well, all of these must be provided accurately.

What about following the rules after you sign up?

After you fill out Section 8 Company Registration, you have to follow some annual rules, such as:

  • Annual ROC filings (Form AOC-4 and MGT-7)
  • Keeping track of books and accounts
  • Filing your income tax return
  • Renewing 12A and 80G certificates
  • If applicable, CSR reporting

You have to conduct your organization like a business, with all the right records, documentation, and filings, even though Sec 8 Company Incorporation is for nonprofits.

How to Get 12A Registration for a Section 8 Company?

After you finish registering your NGO, do these procedures to register for 12A:

  • Go to the Income Tax website
  • Log in and fill out Form 10A

Upload:

  • Trust Deed/MOA
  • PAN card
  • Certificate of Incorporation
  • Report on activities (if any)

Send it in and wait for it to be approved.

Your Section 8 Company is now a tax-exempt organization once it gets the green light. You will need the 12A certificate for future grants and audits, so keep it safe.

Why should you register your NGO with Section 8 Company?

  • The most trustworthy structure for an NGO
  • Complete legal status under the Companies Act
  • It’s easy to get donations from other countries (with FCAFC)
  • More recognition for donors and businesses
  • Section 8 Company can get tax advantages by registering for 12A

That’s why a lot of new-age NGOs would rather register as a Section 8 Company than a trust or society.

Conclusion

If you really want to form a nonprofit in India, the best method to do so is to register as a Section 8 Company. Depending on how you go about it, it takes between 25 and 40 days and costs between ₹9,000 and ₹30,000. After that, it’s important to secure a 12A registration for your Section 8 Company so you may get tax breaks and build confidence with donors.

For a seamless process, it’s best to talk to a lawyer or CA that knows a lot about Section 8 Company Incorporation and compliance. You can then spend less time on paperwork and more time on your objective.

So, if you’re ready to make a difference, get your NGO registration done right away. Not only is it lawful for an NGO to be well-registered, but it also makes a difference.

Check this out too: What Documents and Compliance Are Required for Section 8 Company NGO Registration in India?