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Section 8 registration helps you set up a non-profit organization focused on

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    Give Your Non-Profit Organization the Legal Recognition

    In India, a Section 8 Company serves as an NGO. Such companies aim at science, arts, sports, education, and charitable activities. However, these companies don’t function like Trusts or Societies. Profits gained by Section 8 companies are reinvested to support their stated goals instead of being distributed to company members. The Section 8 company registration process falls under the jurisdiction of the MCA, which makes it different from Trusts or Societies, which the State Government Registrars govern.

    Choosing NGO (Section 8) company registration through Click To Professionals provides different benefits over Trusts or Societies. The Section 8 structure improves credibility with stakeholders, government departments, and possible donors. Our expert team ensures a smooth NGO registration process at Click To Professionals. With competence in application filing, documentation, and proficient registration, we reduce your worries, making the whole process efficient and seamless.

    Section 8 Company Registration
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    Introducing Section 8 Company Registration

    As per the Companies Act 2013, a Section 8 company is a type of organization dedicated to promoting non-profit activities, such as commerce, arts, science, social welfare, sports, education, research, environmental protection, religion, charity, and so forth. These organizations use their profits to meet their goals and don’t distribute dividends to any shareholder.

    The primary purpose of NGO registration in India is to encourage non-profitable objectives. Registering an NGO (Section 8) company requires at least two directors. Also, there is no need for a minimum paid-up capital to establish such entities.

    Purpose of NGO (Section 8) Company Meaning

    An NGO (non-governmental organization) is a non-profit entity. The prime purpose of founding a Section 8 (NGO) Company is to promote non-profit activities, such as education, healthcare, and reducing poverty. A Section 8 Company is registered under Section 8 of the Companies Act 2013. These non-profit entities are founded for charitable activities.

    Section 8 Company Registration

    NGO Registration Benefits

    Different benefits of registering an NGO (Section 8) Company according to the Companies Act 2013 are as follows:

    No minimum paid-up capital is required for registering an NGO online. You can change the capital structure of the NGO at any time according to the development needs of the organization. Therefore, the funds needed for running business activities can be acquired later through subscriptions and donations from the general public and company members.

    Section 8 companies can freely choose a name without adding the term ‘Section 8’ to their name. This offers better naming flexibility.

    No stamp duty is charged for an NGO registration in India. Such entities don’t have to pay the stamp duty charged on the MoA or AoA of a public or private limited company.

    According to the Income Tax Act, 1961, Section 8 companies enjoy tax benefits of 80G registration. The CARO (Company Auditor’s Report Order) is not applicable for a Section 8 agency.

    Section 8 company members have limited liability according to the shares they subscribe to. They have no personal liability for the company losses.

    Section 8 companies follow strict legal compliance systems. This ensures that these entities have increased credibility and authenticity compared to Trusts or Societies.

    Section 8 company registration promotes a different legal recognition from its members. A registered partnership company can also achieve a Directorship of Section 8 Company by becoming a member in its separate capability. Since it is in constant existence, any member’s entry or exit won’t impact the company’s activities.

    NGO Registration Requirements

    Some legal requirements should be met before going through the NGO registration steps online. They are as follows:

    01

    Number of Members

    Suppose a Section 8 company functions like a private limited company; the maximum number of members should be 200. However, there is no such limit if it operates like a public limited company.

    02

    Number of Directors

    At least two directors are needed if a Section 8 company works like a private limited company. However, it requires three directors to operate if it functions like a public limited company.

    03

    Name and Capital Requirement

    If a Section 8 entity operates as an NGO, it does not have to use terms like ‘limited’ or ‘private limited’ in its name. As per the Companies Act 2013, Section 8 agencies don’t need to maintain a minimum paid-up capital.

    04

    Property Management

    According to the MoA and AoA of the company, the Board of Directors manages a Section 8 company. However, the Trustees handle other trusts according to the Trust Deed.

    05

    Non-Profit Objects

    Companies with non-profit objects are only eligible for NGO registration online. According to the MoA and AoA, companies with non-profitable goals are known as NGOs. The profits produced by a Section 8 firm should be reinvested in the company or used for charitable purposes. These legal requirements ensure that these companies work transparently and they want to promote social welfare.

    06

    Annual Compliance

    A Section 8 agency should file annual returns and accounts with the ROC to ensure yearly compliance.

    07

    Closure of a Company

    Upon its separation (according to the society's by-laws) and settlement of all debts and liabilities, the society's funds and property may not be distributed equally among all members. Instead, the amount can be given to another organization with the same objectives.

    Section 8 Company Registration Eligibility Criteria

    Particular eligibility criteria should be fulfilled to establish a Section 8 (NGO) Company in India.

    Section 8 Company Registration

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    Essential Forms for Section 8 Company Registration

    Here are the vital forms needed for Section 8 Company registration and their purposes:

    Name of the Form & Purpose

    Name of the Form

    Purpose of the Form

    How to Register an NGO (Section 8)

    The NGO (Section 8) Company registration process involves the below-mentioned steps:

    First, you must get a DSC for the NGO’s decided directors. A DSC is required for the digital signing of documents by the MCA. Form DIR-3 is used to get the DIN, and you should file it alongside the DSC of the suggested directors. The Click To Professional team will help you in this.
    Next, you need to book a unique name for your Section 8 Company using our website’s NGO registration name availability tool. Names must include terms like Association, Foundation, or Institution to signify their non-profit status. It would help if you used Form SPICe+ to reserve a company name.
    Once the name is approved, you must file the incorporation application. The application is filed in Form INC-32 alongside the MoA and AoA of the Company. We can help you file this form.
    After you get the approval for the application for incorporation, you need to get a license for the NGO. It would help if you used Form INC-12 to get the permit. We can file this form alongside the essential documents on behalf of you.
    Once you get the license, the ROC issues a COI in Form INC-16. This certificate confirms the NGO registration. Also, the NGO registration certificate marks the legal existence of the company. The Click To Professional team ensures you get this certificate within a specified time.

    Funding or Donations of the Section 8 Company

    Although a Section 8 Company cannot collect capital through deposits, it can accept public donations. A few methods to raise funds include the following:

    Section 8 Companies can collect funds by unlocking new equity shares at a standard cost.
    Domestic donations have no restrictions. However, you should follow a proper system to avoid illegal money concealing.

    If a Section 8 Company is registered under the FCRA (Foreign Contribution Regulation Act of 1976), it gets permission for foreign donations. If you need foreign donations urgently, you must request prior permission from the commissioner. Otherwise, FCRA registration applications get accepted 3 years after incorporation.

    Section 8 Company Registration
    Section 8 Company Registration

    NGO Registration Documents

    Here are the essential documents for NGO registration online:

    • Voter ID or DL
    • Passport-size photos of shareholders or directors
    • Aadhar card
    • Latest bank statement and utility bills
    • Passport (in case of foreign national or NRI)
    • NOC from the landowner
    • Latest gas bill, water bill, or electricity bill (should not be older than two months)
    • Rent agreement (in case of a rented office)
    • Digital Signature Certificate (DSC)
    • MoA and AoA
    • Incorporation Certificate of a foreign corporate entity (if any)
    • Identity and address proof of nominees and subscribers
    • Declaration by the first Director Subscriber (no need for an affidavit)
    • Declaration of unregistered agencies
    • Resolution by the promoter company

    Annual Compliances of Section 8 (NGO) Company

    Apart from conducting two board meetings annually, a Section 8 Company must comply with some other annual compliances. They are mentioned below:

    Filing an Income Tax Return

    Section 8 companies should file an ITR, although they are not taxed on profits.

    Additional Compliances

    Section 8 Companies should have extra compliances to meet particular registrations, such as obtaining 80G registration for tax benefits to donors and getting 12AA registration for tax exemption.

    Getting Their Accounts Audited

    NGOs should hire a CA to audit their accounts annually.

    Filing an Annual Return with the MCA

    Section 8 companies should file an annual return with the MCA with other e-filing forms like MGT-7. The yearly return should contain details of company governance, financial activities, and performance.

    Filing Financial Statements and Solvency with the MCA

    Section 8 companies should file financial statements in Form AOC-4 and maintain Books of Accounts. The statement of accounts and solvency should have details about the organization's costs, income, liabilities, and assets.

    Section 8 Company Registration

    Penalty for Non-Compliance

    If a Section 8 Company fails to comply with the legal provisions of the Companies Act 2013, the Central Government can revoke its license. Also, the government can revoke the permit if the company conducts its objects fraudulently or violates its objects of establishment.

    If a Section 8 Company fails to comply with the provisions of the Companies Act, it will be subject to a fine starting from INR 10 lakh and extending to INR 1 crore. If the directors and officers of the company violate the terms of the Companies Act, they will be punished with a fine of nearly INR 25,000 and up to INR 25 lakhs, or both.

    NGO Registration Fees

    The NGO registration cost in India includes the following:

    Digital Signature Certificate and DIN

    INR 3,000

    Company name reservation

    INR 1,000

    AoA, MoA, Government and Incorporation Cost

    INR 6,000 to INR 8,000

    Professional Charges

    INR 8,000 to INR 10,000

    Please note that the fees mentioned above are approximate and can differ according to different factors.

    Why Choose Click To Professionals for Section 8 (NGO) Company Registration?

    Click To Professionals is a reliable partner for companies and entrepreneurs seeking Section 8 Company incorporation in India. We have a team of expert NGO registration consultants. With our smooth online NGO registration services, we ensure the ease of the complicated Section 8 Company registration process. Moreover, we ensure that all legal formalities are met.

    Our experienced team of consultants guides clients through the whole registration process. From getting approval for documentation to founding non-profit organizations, we ensure you can work towards charitable functions and social welfare. Our dedicated team of advisors is a call away. Please get in touch with us if you have any questions or queries regarding the registration process.

    Section 8 Company Registration

    Frequently Asked Questions (FAQs)

    Yes. To convert your current company to a Section 8 Company, you need to alter the MoA and AoA of the company and get approval from the RoC. Also, you need to fulfill the eligibility criteria, submit essential documents, and follow the NGO registration rules according to the Companies Act 2013.
    Based on the government body’s processing time, the process of registering an NGO in India can take 10 to 14 days and getting the Certificate of Incorporation can take 1 to 2 months.
    No, you don’t need to present in person at our office. You can scan and send all the documents to us by email. If required, you can courier some documents to our office too.
    Yes, there are other alternatives for starting an NGO in India. Such alternatives are Societies, Trusts, and Section 8 Companies. This alternative depends on the entity’s governance structure, particular objectives, and legal needs.
    Yes, it owns assets and property in its name.