Section 8 Company Registration

Section 8 company registration

Professional Fees: Rs. 3000
Approx Rs. 15000 – 16000 (inclusive All)

An NGO can be registered as a Section 8 company under the Companies Act 2013 or as a trust under the Trust Act 1882 or as a society under the Societies Act 1860.Section 8 Company Registration is the process of incorporation of an NGO under the Companies Act 2013.

A section 8 Company can be registered for promoting Art, Science, Commerce, Technology, Sports, Education, Social Research, Social Welfare, Religion, Charity and Protection of Environment etc. A Section 8 Company can work anywhere in India after succesful completion of the registration process.

Documents Required for Section 8 Company Registration in India

Following documents are required for Section 8 Company registration:

  • PAN Card of the Directors and Shareholders
  • Aadhaar Card
  • Latest Bank Statement
  • Telephone Bill 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

Benefits of Section 8 Company Registrations in India

There are certain advantages of registering an NGO or NPO under Section 8 of Companies Act 2013. Some of them are as follows:

No minimum capital: There is no minimum capital requirement for a Section 8 Company Registration in India.

Tax Benefits: There are numerous tax benefits under the Section 8 Company Registration in India.

No Stamp Duty: No stamp duty is imposed on the incorporation of Section 8 Company in India as it is against the provision of the payment of stamp duty on the MoA and AoA of the private limited company.

Separate Legal Identity: Section 8 Company registration has a separate legal entity. It acquires a distinct legal identity from its members.

Credibility: Section 8 Company has more credibility than any other form of a charitable organisation. It is under the strict provision of the Companies Act which requires a mandatory audit every year.

Exemption to the donators: Under Section 80G, the exemption is granted to the donators if the section 8 company is registered under section 80G.

Eligibility Criteria for Section 8 Company Registrations in India

Eligibility criteria for a Section 8 company registration are as follows:

  • An Individual or HUF or limited Company is eligible to start a Section- 8 company registration in India.
  • Two or more person who will act as a shareholder or Director of the company should fulfill all the requirements and compliances of the Section 8 Company registration.
  • At least one of the directors shall be a resident of India. However, a firm may be a member of the company registered under this section.
  • The objective should be the promotion of sports, social welfare, the advancement of science and art, education and financial assistance to lower income groups.
  • The surplus generated must be used for meeting the principal objective of the section 8 company only.
  • Founders, members, and directors of the company cannot draw any remuneration in any form of cash or kind.
  • No profit should be distributed among the members and director of the company directly or indirectly
  • The company should have the clear vision and project plan for the next three years.

How to apply for Section 8 Company registrations in India?

  1. Prepare DSC
  2. File Name Approval
  3. Apply for registration license
  4. Filing of Incorporation Forms
  5. Submission of MoA & AoA
  6. Get Pan, Tan and Bank account

Section 8 company registrations in India is a class by itself. It is a non- profit organisation engaged in the social work for the welfare of the society and the country.

Section 8 company registrations procedure is as follows-

  • Prepare DSC and file Name Approval The very first step for Section 8 company registration is to prepare DSC. Apply for Digital Signature Certificate (DSC) as soon as possible. Section 8 companies should contain words like Foundation, Society, Association, Council, Club, charities, Academy, organisation, Federation, Institute, Chamber of Commerce, Development and many more.
  • Apply for Section 8 Company registrations license from Regional Director, MCA (INC-12) After Name approval, we will apply for Section 8 company registration license from Regional director. The regional director will review the objectives, plans and will grant a permit for Section 8 Company registration. RD usually takes 15 days to issue a license to operate as a section 8 company.
  • Filing of Section 8 Incorporation Forms on MCA Portal After getting approval from the regional director, we will proceed to file the section 8 company registration application with the requisite documents before ROC. Once all clarifications are provided to ROC, the ROC shall issue a Certificate of Incorporation along with a Company Identification Number (CIN).
  • MoA and AoA file submission Once you get the License, you need to draft the Memorandum of Association (MoA) and Article of Association (AoA) to file section 8 company registration applications. The Object of the company will be detailed in the MoA and the rules, and the by-laws will be mentioned in the AoA.
  • PAN, TAN and Bank Account You must have your PAN, TAN and bank account ready while going for Section- 8 Company registration in India.

Section 8 Company Registrations Fee in India

The Registration fees for Section 8 company registration is as follows

  • DSC & DIN – 3000
  • Company Name Reservation – 1000
  • MoA& AoA & Government Fees & Incorporation fees – Rs 6000-8000*
  • Notary and Stamps – 2000

Requirement and Compliances Under Section- 8 Company Registrations in India

  • Minimum Requirement: A Section 8 Company is a company to be incorporated by the Ministry of Corporate Affairs. Minimum two directors and two members are required to incorporate it. No minimum share capital is required for section 8 company registration.
  • Charitable object: Section 8 companies are required to be incorporated with non-profit objectives. Any profit earned through a section 8 company will not be distributed among its members. It will either be reinvested in the business or utilized with an objective of furtherance of its main objects, i.e. charitable purpose.
  • Management Team: Unlike other Trusts which are managed by the Trustees as per a Trust Deed, section 8 Companies are governed by the Board of the Director as per the MoA and AoA of the Section 8 Company.
  • Regulated Under Companies Act, 2013: Section 8 company also needs to follow the rules and regulation that are prescribed under the Companies Act, 2013. Maintaining Book of accounts, filing of returns as and when required.
  • Income tax: A company has to follow the provisions of Income Tax Act.
  • GST Registration: Every person or company who is indulged into providing goods and services whose aggregate turnover crosses Rs.40 lakhs in a year requires GST Registration.

Annual Compliances for Section 8 companies as per the Companies Act 2013

The annual compliances of section 8 company are just like the other companies.

  • Conduction of minimum of two board meetings in a year.
  • Maintenance of Books of Accounts
  • Preparation of Financial Statements
  • Mandatory Audit
  • Income tax return filing
  • Filing of financial statements in form AOC 4
  • An annual return is to be filed every year with other e- filing forms like MGT 7.
  • Additional compliances to fulfil the registration like 12AA, 80G etc.

MINIMUM REQUIREMENTS

  • Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)
  • DIN (Director Identification Number) for all the Directors
  • Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
  • DSC (Digital Signature Certificate) for all of the Directors
  • The directors and shareholders can be same person
  •  Address proof for proposed office address

WHAT ALL YOU GET

  • DIN for 2 Directors
  • MOA + AOA
  • Customized Incorporation Master File
  • Bank Account Opening Document Support
  • Digital Signature for 1 Director
  • Incorporation Certificates

book mark this link

Leave a Reply