What Is Section 8 Company Registration?
An NGO can be formed as a Section 8 under the Companies Act 2013, a trust under the Trust Act 1882, or a society under the Societies Act 1860.
A section 8 corporation can be formed to promote art, science, commerce, technology, sports, education, social research, social welfare, religion, charity, and environmental protection, among other things. After completing the registration process, it can work anywhere in India.
Registered your Section 8 Company By Professionals
- Directors and Shareholders PAN Card
- Aadhaar Card Directors and Shareholders
- Current Bank slips
- Telephone 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.
Eligibility Criteria :
- A Section- 8 company registration in India can be started by an individual, a HUF, or a limited company.
- Two or more people who will act as shareholders or directors must fulfill all of the Section 8 Company registration criteria and compliances.
- At least one of the directors must be an Indian citizen. A firm, on the other hand, may be a member of a corporation registered under this provision.
- The goal should be to promote sports, social welfare, arts and sciences advancement, education, and financial help to low-income populations.
- The surplus generated must be used exclusively to achieve the company’s primary goal.
- The objective should be promoting sports, social welfare, the advancement of science and art, education, and financial assistance to lower-income groups.
- The surplus generated must be used exclusively to achieve the section 8 company’s primary goal.
- The company’s founders, members, and directors are banned from receiving any payment in cash or kind.
- Directly or indirectly, no profit should be distributed among the firm’s members and directors.
- The company should have a clear goal and plan the project for the next upcoming three years.
Process For Registering :
-Prepare DSC and file name approved
-filing of section 8 incorporation forms on the MCA portal.
-MOA and AOA file submission.
-PAN, TAN, and bank account.
- Prepare DSC and file Name Approval.
- The first step is to create a DSC. As quickly as possible, apply for a Digital Signature Certificate (DSC). Expressions like Foundation, Society, Council, Charity, Academy, organization, Federation, Institute, Chamber of Commerce, Development, and others should be used.
- Filing Incorporation Forms on MCA Portal.
- We will begin to file the application with the required documentation with the ROC after receiving approval from the regional director. After receiving all clarifications, the ROC will issue a Certificate of Incorporation and a Company Identification Number (CIN). This would be done following the standards of SPICE plus (Spice +).
- MOA and AOA file submission.
- After you get the license, you must first write the Memorandum of Association (MoA) and Articles of Association (AoA).
- PAN, TAN, and Bank Account
- You must have your PAN, TAN, and bank account available.
In India, Section 8 registration is in a class by itself. It is a non-profit organization focused on social service for the betterment of society and the country.
The registration of an NGO or NPO under Section 8 of the Companies Act 2013 has several advantages. Here are just a few of them:
No minimum capital:
There is no minimum capital requirement.
In India, it provides several tax benefits.
No Stamp Duty:
The establishment of a Section 8 in India is free from stamp duty since it breaks the provision requiring the payment of stamp duty on the MOA and AOA of a private limited company.
Separate Legal Identity:
It is a legal entity in its own right. Its members give it a separate legal existence.
Any other type of charitable organization lacks the credibility of a Section 8 Company. It is subject to the severe provisions of the Companies Act, which requires an annual audit.
Exemption to the donors:
The exemption is granted to the donors under Section 80G if its registered under Section 80G.
It is the one that Ministry of Corporate Affairs will incorporate. It must have at least two directors and two members to be included.
There is no minimum share capital requirement.
Companies incorporated under Section 8 must have non-profit objectives. Any profit made company is not distributed to its members.
It will either be re-invested in the company or used to further its principal objectives, such as charity purposes.
Unlike other trusts, which the Trustees govern by the Trust Deed, it is governed by the Board of Directors by its MOA and AOA.
Regulated Under Companies Act, 2013
Companies operating under Section 8 must also respect the laws and regulations outlined in the Companies Act of 2013. They are maintaining a book of accounts and filing returns as needed.
A firm must follow the provisions of the Income Tax Act.
Every person or business that provides goods and services and has an annual turnover of more than Rs.40 lakhs must register for GST.