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Section 8 company Registration

NGOs are established for good causes, and the government provides tax exemptions to assist them with raising funds. Now is the time to register your NGO under Sections 80G and 12A in order to avail of those benefits for your NGO.

  • It must be a religious trust or a charitable institution.
  • Your organization must render charitable services.
  • Your organization's accounts must be audited annually.
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Your Section 8 Company Registration with NGOExperts

We have simplified the process for you and can be done online with NGOExperts in 3 simple steps:

First, we'll have a consultation with you to assess your NGO's needs & determine which services are necessary.

Step 1

Next, we'll guide you through the paperwork & legal requirements needed to register your organization.

Step 2

We'll work with you to ensure that your NGO is in compliance with all applicable laws & regulations, & ready to make an impact.

Step 3

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Introduction

Section 8 Company Registration is the legal process of forming a non-profit organization (NGO) under the Companies Act 2013. This registration allows an organization to function as a company with limited liability while operating for the sole purpose of promoting commerce or implementing activities that benefit society..

Section 8 Companies are organizations that aspire to undertake social & charitable activities without seeking to make a profit. These companies are registered under a specific section of the Companies Act, which provides exemptions, licenses, & privileges to such organizations.

The process of registration of a Section 8 Company requires completing certain formalities, such as drafting legal documents, obtaining digital signatures, filing, & approval.

Availing registration under Section 8 is a crucial step in the journey of an NGO towards making a meaningful impact on society. Our team of legal experts can assist you in the process to ensure a smooth registration experience so that you can focus on your mission of social welfare.

Benefits of Section 8 Company

  • ● Enjoys higher credibility than other charitable organizations, enhancing donor trust.
  • ● Zero stamp duty imposed on incorporation in India & further saves on registration costs.
  • ● Allows partnership registrations to become members & obtain Directorship.
  • ● Effortless tax benefits under Income Tax Act's Section 12AA & 80G, for greater financial efficiency.
  • ● Acquires a separate legal entity from its members & safeguards against legal liabilities.
  • ● Donors receive exemption under Section 80G if registered under the same section.
  • ● No obligation for minimum paid-up capital that provides flexibility in operations.

Eligibility of Section 8 Company Registration

  • ● One director should be a resident of India or a firm may be a member of the registered company.
  • ● Individuals, HUFs, & limited companies are eligible to register.
  • ● Objective must be for social welfare, sports promotion, education support, or aiding lower income groups.
  • ● A three-year project plan & vision must be defined for the company.
  • ● Two or more persons as shareholders or directors must comply with Section 8 Company requirements.
  • ● Profits can only be used towards the core objective of the company. Surplus can't be distributed to stakeholders.
  • ● Neither members nor directors can receive profits, either directly or indirectly. These earnings must serve the company’s purpose.
  • ● Founders, directors, & members aren’t permitted to receive remuneration, assuring that all profits go towards social causes.
  • ● The members or shareholders must not have any personal financial interest in the company.
  • ● A Section-8 company must prefix "Foundation", "Association", "Society", "Council", "Club", "Charity", "Institute", "Organisation", "Federation".

Online Section 8 Company Registration Process

The Indian Companies Act, 2013, provides for online registration of Section 8 companies, which has made it easier & quicker for entrepreneurs to establish non-profit organizations for good causes. The step-by-step instructions for Section 8 Company Registration Online Process:

Step 1: Digital Signature Certificate (DSC) & Director Identification Number (DIN)

To initiate the registration process, the first thing required is to obtain a Digital Signature Certificate (DSC) & Director Identification Number (DIN) for all proposed directors of the Section 8 company.

Step 2: Name Reservation

The proposed name for the online registration of Section 8 company should be unique & not similar to any existing company. The applicant must apply to reserve the proposed name via the RUN (Reserve Unique Name) form. On approval of the name, the applicant gets a name reservation certificate, which is valid for 20 days from the date of approval.

Step 3: Requisite Documents

The following documents need to be prepared & filed with the Registrar of Companies (ROC) for Section 8 company registration online:

  • ● Memorandum of Association (MOA) & Articles of Association (AOA) of the company
  • ● Declaration of the applicant in Form INC - 14
  • ● Declaration of the proposed directors in Form INC - 9 & other forms
  • ● Residential proof of the proposed directors
  • ● Address proof of the registered office of the company
  • ● Other relevant documents (discussed below)

Step 4: Submit Application & Pay Fees

After obtaining the name reservation certificate & preparing the necessary documents, the application for company registration under Section 8 must be submitted online on the MCA (Ministry of Corporate Affairs) portal. Select the Spice+ form option under the Service section & complete the requirements. The requisite Section 8 company registration fees must be paid online.

Follow the official documentation link & get all the insights instantly. For any queries, NGOExperts is always here to help.

Step 5: Verification & Approval

As the documents are processed & approved, the ROC will issue a certificate of registration. Congratulations! You are now a registered Section 8 company in India.

The registration process for a Section 8 company can be quite challenging, especially if you are new to the legalities involved. This is why seeking professional assistance from NGOExperts is wise.

They are qualified in the field & can guide you through the registration process with ease, ensuring that all the documentation & legal requirements are taken care of. So, don't hesitate to seek guidance from them for a smooth & seamless registration process.

Documents Required for section 8 company registration

Before you begin the registration process, it is important to ensure that all the documents are ready & available. List of some essential documents include:

  • ● PAN Card of Directors & Shareholders: Every director & shareholder must have a PAN card for registration.
  • ● Aadhaar Card: Directors & shareholders must submit their Aadhaar card as proof of identification.
  • ● Latest Bank Statement: A recent bank statement is required as proof of address for all directors & shareholders.
  • ● Voter ID/Passport/Driving License: One of these documents is mandatory for the identification of directors & shareholders.
  • ● Passport Size Photograph: Each director & shareholder must submit a passport size photograph.
  • ● Rental Agreement: In case the registered office is on rent, a copy of the rental agreement must be provided.
  • ● DSC & DIN of Directors: All directors must obtain a Digital Signature Certificate (DSC) & Director Identification Number (DIN).
  • ● Objectives & Proposed Work: The Section 8 Company must provide a detailed plan of proposed activities & objectives of the business.
  • ● Financial Statements: The company must submit financial statements like assets & liabilities, & a five-year projection. This is to ensure adequate funding for the company's operations.

Why Choose NGOExperts?

As a leading service provider in NGO registrations, NGOExperts brings a wealth of expertise & experience to the table. We offer Section 8 company registration services & a variety of other registration options to help organizations establish themselves & make a meaningful impact.

  • ● Expertise & Experience Our team of experienced professionals provides expert guidance on all aspects of running an NGO, from registration to compliance.
  • ● Tailored Solutions We are a people-focused organization & go the extra mile to understand your unique requirements & provide customized solutions.
  • ● Timely Delivery With our assistance, you can complete the registration process quickly & without any hassle, allowing you to focus on your NGO's cause.
  • ● End-to-end solutions: We offer end-to-end solutions, from legal registration to fundraising, so that you can focus on your mission without worrying about administrative hassles
  • ● Competitive Pricing : Our track record of success & high customer satisfaction make us a reliable partner for your NITI Aayog NGO registration needs.
  • ● Accountability Our mission is to empower non-profits to create a positive social impact, & we are driven by our passion for philanthropy.

With our all-inclusive registration services, you can focus on your mission while we handle the paperwork. Trust us to help your organization thrive.

Popular FAQ's on
Section 8 Registration

The answer depends on whether you're incorporated as a private or public limited company. In the former case, you need at least two directors, while in the latter, you'll need a minimum of three. Directors are crucial to any company's success, as they are responsible for making important decisions, leading the company towards its goals, & ensuring that it complies with relevant laws & regulations.

A company registration under section 8 comes with numerous benefits, making it an optimal choice for charitable organizations.
  • ● Firstly, it earns higher credibility than other charities, which enhances donor trusts. This not only attracts more donors but also helps maintain long-standing relationships with existing ones.
  • ● Moreover, a Section 8 company enjoys zero stamp duty on incorporation in India & is further exempted from registration costs, allowing it to save valuable resources that can go towards its core mission.
  • ● Partnerships under this company can become members & obtain directorship, giving them a more active role in the organization.
  • ● Effortless tax benefits under Section 12AA & 80G of the Income Tax Act provide greater financial efficiency for the company. A Section 8 company acquires a separate legal entity from its members, thus safeguarding against legal liabilities.
  • ● Donors receive exemption under Section 80G if registered under the same section. Lastly, there is no obligation for minimum paid-up capital, providing flexibility in operations.

Section 8 companies are limited in their ability to raise funds by way of deposits. However, they are allowed to accept donations from the general public. These donations are typically used for the purpose of furthering the company's objectives, such as promoting social welfare or advancing education. It is important to note that Section 8 companies are subject to strict regulations & are required to maintain transparency & accountability in their financial practices. While they cannot accept deposits, these companies play an vital role in promoting social causes & making a positive impact on the world around us.

A foreign company cannot be registered under Section 8 of the Companies Act, 2013, as it does not fit within the definition of a foreign company as outlined in Section 2(42). It is essential that those looking to form a Section 8 company understand these limitations & eligibility requirements to avoid any potential legal issues down the line.

As far as taxation for Section 8 companies is concerned, they are treated like any other company. The profits generated by the company are taxed at a rate of 30%. However, if the section 8 company is registered under section 12AA of the Income Tax Act, then the profits are completely exempt from taxation. This means that if the company is following all the regulations & is registered under section 12AA along with being a Section 8 company, it can enjoy the perks of tax exemption.

For companies operating as Section 8 entities, the remuneration of directors can be a complex issue. When a company has only one managing director, whole-time director, or manager, their salary cannot exceed 5% of the net profits. However, if a company has multiple directors in these roles, the total remuneration cannot exceed 11% of the net profits. It's essential for companies to adhere to these guidelines, but it's equally important for directors to recognize their value & ensure they're being fairly compensated for their contributions.

There is no requirement for minimum paid-up capital in these cases. This is in contrast to other types of companies, where a minimum level of capital is necessary to get started. With a Section 8 company, the focus is on the social good the company can do, rather than just making a profit. Therefore, minimum capital requirements are not considered to be important for this type of entity.

Yes, as a separate legal entity, a Section 8 company has the right to acquire, own, & dispose of their properties in their own name. This means that the company can sell a property just like any other entity. It's always best to ensure that you're following all relevant laws & regulations when making these transactions.

While the Companies Act 2013 does prescribe a minimum of three members for public limited companies & two for private limited companies, there is no rule when it comes to Section 8 companies. In fact, there is no minimum or maximum number of members specified for these types of organizations. This can actually be a great advantage for those looking to establish a Section 8 company, as it provides ample flexibility in terms of membership & governance

Section 8 companies, in spite of their non-profit status, have the ability to make a profit. Rather than being focused solely on generating revenue, these organizations are formed to serve a public good, such as promoting the arts, science or charity. While some might believe that non-profit status restricts the potential for profit, Section 8 companies can & often do turn a profit while still fulfilling their intended purpose.
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