in just 8,000/- ( Inclusive of All Taxes )
Keynotes on Section 8 Company Registration
It takes 10 to 15 days for Section 8 Company Registration
Completely online service - No physical presence required.
No Minimum Share Capital required
A Section 8 company is a non-profit organization which is similar to a trust or society in India. It is a unique legal entity incorporated under the Companies Act, 2013. The primary objective of company is to promote activities in areas of social welfare, education, art, science, charity, religion and other similar purposes. It is contribute significantly to the development and betterment of society. This type of companies is formed by such entrepreneurs who do not have any profit motive.
Section 8 Company Registration (NGO/NPO)
Section 8 company has the authority to work anywhere in the India and it is registered with Ministry of corporate affairs for NGO or charitable purpose. One Click Business Solutions helps to register a section 8 company in short time with different business set-up. We register all types of companies like private limited, public limited, section 8 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. You can get in touch with us to fast procedure of company formation with the help of highly experienced professionals consultants. You may contact us to know more about online section 8 company registration fees and process.
How to start your section 8 company today at affordable price? Now One Click Business Solutions provide best legal and accounting services. It will take few working days for complete registration and know the all the requirements of it.
Reservation of Company Name
DSC
Central Govt. License
AoA & MoA
All India Validity
NGO Identification Number
ROC Fees as per MCA (Ministry of Corporate Affairs)
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. Once registration procedure is completed successfully, a Section 8 company can do its operations anywhere in India.
It 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 :
Obtain DSC (Digital Signature Certificate)
The first step is to get DSC for all the proposed directors in a company. DSC is needed to sign
the documents electronically. It is offered by the certifying authority. All the forms are
submitted must be self-attested.
Required details :
Email ID and Mobile number
PAN and Aadhaar
File Name Approval –
Section 8 companies should include phrases like society, foundation, council, association,
club, academy, charities, federation, organization, chamber of commerce, institute,
development and others.
Documentation
After digital signature and name approval, we will draft all the directors' and shareholders'
declarations sheets for their acceptance, articles of association, memorandum of association
and subscription sheet.
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 license from Regional director.
Plans and objectives will be reviewed by regional director and a permit will be
granted for registration. 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 –
Once 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).
Drafting of AoA and MoA to file applications –
Once license is obtained, it is suggested to draft the Articles 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
PAN Card
Votar ID
Passport ID
Driving License
Bank Statement
Electricity / Mobile bill / Electricity bill / Gas bill
Passport Size Photo
No Objection Certificate from the owner
Utility Bills
Receipt of House Tax
Rent Agreement
Proof of Registry
Under the Companies Act 2013, there are a number of considerable benefits to register a NGO or NPO under Section 8. Let us follow them :
Tax Benefits –
Under the Section 8 Company in India, a number of tax advantages are there.
There is no minimum capital –
There is no need of any minimum capital for the company registration
Distinct Legal Identity –
This type of company includes a separate legal unit. It reserves an identical legal
characterises from the members.
There is not any Stamp Duty –
Stamp duty is not imposed on the incorporation of Section 8 Company 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 –
It includes enhanced credibility compared to any other type of a charitable
organization. It follows strict provision of the Companies Act that needs a compulsory
audit each year.
Following are the eligibility criteria for registration of section 8 company :
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 registration.
A person or limited company or HUF is suitable to commence a company registration.
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.
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
Strict compliances
Foreign funding is restricted
Compliance is costly
Profits cannot be taken out of company
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 for 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 of the organization will be punished. They would meet imprisonment for 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.
It 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
Yes, Central Govt. Approval is essential for section 8 company registration in India. It is needed before company registration.
There is not any need of minimum capital for section 8 company.
An auditor should be appointed by board of directors within 30 days of incorporation.
| Trust | Societies | Section 8 |
| Trust 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 faith | Little faith because membership is a crucial factor | Enhanced faith |
| Trust deed is the most essential document | Society deed is the most crucial paper | Memorandum of Association is the most crucial deed |
| No compliances | Compliances according to deed | Different compliances that include audit |
No, there is no need of minimum number of members for 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.
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.
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 government department.
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.
Important point to note –
The new company name does not require matching with the present company or trademark in India.
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.
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 8 company registration is known as the first step for starting your NGO 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.
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. Section Due to central government approval, section 8 includes more authenticity.
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 type of NGO
Under Section 8 Company, provisions of penalty are strict
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
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. But Section 8 Company is more authentic, includes enhanced trust factor and more satisfaction of the people.
