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REGISTER A SECTION 8 COMPANY

in just 20,500/- (inclusive of all taxes & fees)

Keynotes on Section 8 Company Registration

DSC & DIN – 3000
Company Name Reservation – 1000
MOA & AOA & Government Fees & Incorporation fees - Rs 6000-8000*
Notary and Stamps – 2000
Professional Fees- 8000-10000

SECTION 8 COMPANY REGISTER

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Do you want section 8 company registration or NGO registration services? One Click Business Solutions Private Limited helps its clients with different business set-ups, registrations, tax-fillings etc. We have a team of well-trained professionals to address legal requirements of different businesses. They know how to register section 8 company and help young entrepreneurs to set-up their business.

A section 8 company is like a trust or society. Section 8 companies or NGO companies are formed by such entrepreneurs who do not have any profit motive. It is not possible for the section 8 companies to collect funds by way of deposits. At One Click Business Solutions Private Limited, we register all types of companies like private limited, public limited, section 8 etc. You may contact us to know more about cost of section 8 company registration services.

We have experts to provide you with important assistance to register a company. You can get in touch with us to know more about our efficient section 8 company registration consultants. Our experts help entrepreneurs to enrol their business by completing section 8 company registration online procedures.

Register a Section 8 Company

Reservation of Company Name

DSC & DIN

Central Govt. License

AoA & MoA

All India Validity

NGO Identification Number

ROC Fees as per NCT of Delhi

Section 8 Company Registration

Under the Company Act 2013, an NGO can be registered as a Section 8 Company. Alternatively under the Trust Act 1882, an NGO can be registered as a trust or it can also be registered as a society under the Societies Act 1860. Under the Companies Act 2013, registration of Section 8 Company is known as the procedure of incorporation of an NGO.

Registration of a Section 8 Company is done to promote science, commerce, art, sports, technology, education, social welfare, social research, charity, religion, protection of environment and others. Once registration procedure is completed successfully, a Section 8 company can do its operations anywhere in India.

Plus points of Section 8 Company Registration in India

Under the Companies Act 2013, there are a number of considerable benefits to register an NGO or NPO under Section 8. Let us follow them :

Tax Benefits –
Under the Section 8 Company Registration in India, a number of tax advantages are there.

There is no minimum capital –
There is no need of any minimum capital for the registration of a Section 8 Company in India.

Distinct Legal Identity –
Section 8 Company registration includes a separate legal unit. It reserves an identical legal identity from the members.

There is not any Stamp Duty –
Stamp duty is not imposed on the incorporation of Section 8 Company in India because it violates the provision of the payment of stamp duty on the AoA and MoA of the private limited company.

Donators are exempted –
If the Section 8 Company is registered under section 80G, the donators get exemption under its provisions.

Credibility –
Section 8 Company includes enhanced credibility compared to any other type of a charitable organization. It follows strict provision of the Companies Act that needs a compulsory saudit each year.

Eligibility Condition for Section 8 Company Registration in India

Following are the eligibility criteria for Section 8 Company Registration :

Two or more individual who will operate as a director or shareholder of the company need to satisfy each and every needs and compliances of the Section 8 Company registration.

A person or limited company or HUF is suitable to commence a Section 8 company registration in India.

The objective includes promoting social welfare, sports, education, advancement of art and science and financial help to lower income people.

Minimum one of the directors should be a resident of India. Under this section, an organization may be a member of the registered companies.

Members, founders and directors of the organization cannot get any salary in the form of cash or other kind.

The main goal of the Section 8 Company should be achieved by using the surplus created.

The company must have project plan and clear objectives for upcoming 3 years.

Profit cannot be disbursed among the director and members of the organization directly or indirectly.

Procedure of Section 8 Company Registration is as follows

Section 8 Company is a non-profit organization involved in the social work for the development of the society and country. Let us know the steps of Section 8 company registration process :

Create DSC and File Name Approval –
Preparation of DSC is initial step Section 8 company registration. The next step includes application for Digital Signature Certificate as early as possible. Section 8 companies should include phrases like society, foundation, council, association, club, academy, charities, federation, organization, chamber of commerce, institute, development and others.

Application for license of Section 8 Company registration from Regional Director, MCA (INC-12) –
Once name approval process is completed an application should be done to get Section 8 company registration license from Regional director.
Plans and objectives will be reviewed by regional director and a permit will be granted for registration of Section 8 Company. Generally 15 days is needed by Regional Director for issuing a license to start the operation of a Section 8 company.

Section 8 Incorporation Forms should be filed on the Portal of MCA –
approval is obtained from the regional director, filing the application of section 8 registrations should be made before ROC with the necessary documents.
As soon as all clarifications are offered to ROC, a certificate of incorporation should be issued with a Company Identification Number (CIN).

AoA and MoA file submission –
Once license is obtained, it is suggested to draft the Article of Association (AoA) and Memorandum of Association (MoA) for filing applications of Section 8 company registration.
The purpose of the company will be given in detail in the MoA and the rules. By-laws will be stated in the AoA.

PAN, TAN and Bank Account –
It is suggested to prepare PAN, TAN and Bank Account while opting for registration of Section 8 Company.

Steps of Section 8 Company Registration in a Nutshell

Document required for registration

ID Proof

( Compulsory )

PAN Card

Any of the following :

Votar ID

Aadhar Card

Passport ID

Driving License

Address Proof

( Compulsory )

Bank Statement

Electricity / Mobile bill / Electricity bill / Gas bill

Passport Size Photo

( Compulsory )

Passport Size Photo

Registered Office

( Compulsory )

No Objection Certificate from the owner

Utility Bills

Any of the following :

Receipt of House Tax

Rent Agreement

Proof of Registry

Forms required for registering Section 8 NGO


Forms Needed Purpose of the Form
INC 1/RUN Reservation of the proposed company name
INC 7 Application for company registration under Section 8
INC 8 Declaration
INC 9 An affidavit should be obtained from each director and subscriber
INC 12 Application to grant license to operate as Section 8 Company
INC 13 Memorandum of Association (MoA) of the Company
INC 14 Declaration from a Chartered Accountant who is in practice
INC 15 Declaration from each unit who is involved in filing application
INC 16 License for Company Incorporation under Section 8
INC 22 For Registered Office
DIR 2 Consent for acting as a Director
DIR 3 Application is to be made to Registrar of Companies (ROC) to get DIN (Director Identification Number)
DIR 12 Appointment of Directors

Advantages of Section 8 Company registration

There is no need of minimum capital

Separate legal unit

Exemption of tax

Best to start NGO or NPO

Easy transfer of title or ownership

Donations can be taken

Stamp duty is exempted

Highly credible

Use of title

Disadvantages of Section 8 Company Registration

Strict compliances

Foreign funding is restricted

Compliance is costly

Profits cannot be taken out of company

Penalty under Section 8

As par the provisions of sub-section (11) of Section 8 of the Companies Act, 2013, if terms and regulations of Section 8 are not followed by the company, then the company will be charged to fraudulent actions and considered punishable. Besides the company needs to pay :

A fine of Rs 10 lakhs that can exceed to maximum Rs 1 crore

Every director with the officer of the organization will be punished. They would meet imprisonment for the terms of three years with a minimum fine of Rs 25000. Though, this can exceed up to Rs 25 lakh.

Or the responsible person will experience both.

Frequently Asked Questions

Ques: What are the purposes of Section 8 Company Registration process?

Section 8 Company can be registered for a number of social factors such as :

Poverty

Education

Blood Bank

Disease

Protection of Environment

Other objects for common public interest

Ques: Is there any need of Central Govt. approval for registering a Section 8 Company in India?

Yes, Central Govt. Approval is essential for section 8 company registration in India. It is needed before company registration. If the govt considers the reason of registration due to some important issue and not only for tax planning, they continue to grant the registration.

Ques: What is the need of minimum capital for Section 8 Company?

There is not any need of minimum capital for section 8 company in India.

Ques: How auditors are appointed under Section 8 company?

Auditors are appointed by board of directors within 30 days and there is not any requirement of central government approval.

Ques: What is the difference between trust, societies and Section 8 Company?

Trust Societies Section 8
It is a simple registered NGO and does not include any definite power Societies are registered according to Societies Registration Act and therefore authentic Section 8 Company is the most authentic NGO or NPO that is registered under Companies Act, 2013
Lack of trust Little trust because membership is a crucial factor Enhanced trust
Trust deed is the most essential document Society deed is the most crucial paper Memorandum of Association is the most crucial deed
Low registration cost Cost of registration is between Rs 15000 to Rs 20000 Approximate cost of registration is Rs 25000 due to enhanced work load
No compliances Compliances according to deed Different compliances that include audit suggested

Ques: Is there any need of minimum number of members in Section 8 company?

No, there is no need of minimum number of members for Section 8 Company.

Ques: How does taxation work under Section 8 company?

The profits are taxed @30%. If Section 8 Company is registered under section 12AA of Income Tax Act, then its profit is completely exempted and no tax is imposed on the company. It is essential to make compulsory compliances every year to get tax exemption.

Ques: Is it an easy task to close a Section 8 company?

No a lot of time and labour is required to close a section 8 company. It cannot be closed by applying any fast track approach like strike off strategy. Before closing of the company, the compliance should be up-to date else the application for closure will not get acceptance.

Ques: Necessary checklist for registration of Section 8 company?

Should be clear with social objectives

Must have idea regarding source of funds and its use

The documents of minimum 2 persons

Objectives should be drafted under memorandum in order to prevent rejection by the govt dept

Ques: How to choose name for Section 8 Company?

Section 8 company is called non-profit organization that targets to operate on the social topics of the society. The names of Section 8 Company may end with "foundation" or any other phrase may be selected. The first phrase under section 8 Company must be the name or the brand that is to be used in the NGO such as being human, PlaninIndia and others.

Important point to note –
The new company name does not require matching with the present company or trademark in India.

Ques: Why a NGO is known as a Section 8 Company? What is the difference between Section 8 and Section 25 company registration?

Under Company Act 2013, a NGO is registered as a company, known as Section 8 Company. The provisions related to registration of this kind of organization are stated in Section under the Company Act 2013.

Section 25 refers to the old name Section 8 Company. Before companies Act 2013 came into existence, company law was administered by Company Act 1956. Under the Company Act 1956, the law pertaining to registration of NGO was stated in Section 25 of the same. Therefore it was known as Section 25 Company in India before.

Ques: What are other important licenses for claiming tax exemption in Section 8 Company?

Section 8 company registration is known as the first step for starting your NGO or NPO in India. It does not offer any exemption of tax. Exemption of tax is offered by Income Tax Act, 1961. A couple of registration procedures are needed for tax exemption :

Section 12AA Registration to get exemption of the income of the company - In order to claim any exemption under the income tax act, it is necessary to register under section 12AA registration. Once registration is completed, it is important to follow the provisions in order to prevent any scrutiny by tax department.

Section 80G registrations to give exemption to the donors - If you are registered under Section 80G, any person donates to your organization can claim exemption in his IT return.

FCRA Registration – If donations are to be claimed from foreign countries, then registration is to be taken under FCRA Act. The company should be at least 3 years old or you need to apply for the prior acceptance in order to get foreign contribution or donations.

Ques: What are merits of Section 8 Company?

Section 8 Company is a non-profit organization that targets supporting the social intentions. A lot of advantages are involved with Section 8 Company Registration compared to society and trust registration. It is easier to register under Income Tax Act, 1961 as section 8 company includes proper documentation. This is the registered type of NPO so more people keep trust on it to make donation. Section 8 companies can operate on PAN India basis and it does not need any other approval. Due to central govt approval, section 8 includes more authenticity.

Ques: What are the demerits of Section 8 Company?

Section 8 Company is one of the finest forms for registration while planning for registering a NGO. Although it includes certain disadvantages that are as follows :

It is tough to start a Section 8 Company as it needs central government approval

Its compliance cost is higher than any other NPO or NGO form

Under Section 8 Company, provisions of penalty are strict

Ques: Why it is called NGO / NPO? How is it different from registration of trust?

Section 8 Company does not have any profit motive. Its main objective is to acquire social intervention and also provide support to the society in any way. NPO and NGO are similar term and they are alternative name for trust and section 8 company.

Trust registration is another choice for registering NPO if Section 8 Company is better.

Ques: What is known as filing or annual compliances for Section 8 company?

Section 8 company needs to arrange a couple of board meetings in a year

Every year annual return is to be filed with other e-filing forms such as AOC 4, MGT 7 etc.

Filing income tax return every year is a must

Additional compliances in order to fulfil the registration are 80G, 12AA and others

Audit is compulsory

Ques: Is registration fees for Section 8 Company is higher than trust registration?

Section 8 Company registration is more costly as compared to trust registration. Central govt approval along with many other additional needs is compulsory to start with. Conversely trust registration is completed at the local SDM office and approximately Rs ____________________________ is required for registration. But Section 8 Company is more authentic, includes enhanced trust factor and more satisfaction of the people.




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