NGO Registration (Pvt Ltd) Company Registration Online In India
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NGO Registration
Registering a Company is quick, easy, and can be done online with Entrepreneurcell in 3 simple steps:
We help you pick the right company name.
Step 2
We help you pick the right company name.
Step 2
We draft and file the documents required for your company registration (MoA and AoA).
Step 3
What is Section 8 Company?
NGO (Non-Government Organization) is an organization that promotes sports, art, education, research, social welfare, religion, charity, protection of the environment, science, and many more. The main objective of NGO Section 8 company is not to earn a profit while doing the operation if in any case, a profit earns from the operation, the profit is not to be shared among owners/members else take advantage of attaining the objects for which an NGO is formed.
An NGO can be registered using three different structures being a company under.
- Section 8 of the Companies Act, 2013
- Trust under India Trusts Act, 1882
- Society under Societies Registration Act, 1860
Why choose section 8 company incorporation in India?
Incorporation of Section 8 company is more convenient and easy rather than the other modes of registering an NGO. Some of the benefits of section 8 company incorporation are indexed below
- Enjoy the less exemption from stamp duty in Sec-8
- Well-organized operations and prominent flexibility.
- No requirement for physical presence as well as no need for a thorough registration process. Moreover, the donors of the company can assist tax deduction
- Section 8 companies can be established with or without share capital. Hence, the funds are brought in the form of donations.
- It is easy for shareholders to transfer their shares efficiently.
Advantages of Section 8 Company
Tax Benefits
Section 8 companies are a non-profit organization, so they support the exemption from the provision of income tax. The companies also get many other tax benefits and deductions.
Less Stamp Duty
The ease at transferring ownership/title
The limited Liability Companies do not have any kind of advantage to transfer their ownership, but the income tax Act, 1961 does not confide Section 8 Companies to transfer their ownership, whereby, enabling the transfer of both movable and immovable interest without any obstacles or restrictions.
Minimum share capital
Unlike the other limited companies like private, public, or one person, a section 8 company do not require indeed share capital to set up the entity. The members can use the funds directly from their donations and subscriptions.
Separate legal entity
Section 8 company has a clear legal entity which means the company’s existence is different from its members.
Disadvantages of Section 8 Company
Limited objective
The central objective of Section 8 companies is to use the profits and income of the company in the promotion of some specific field only and not for any other causes.
Multiple rules and regulations
The central Government urge many compliances on Section 8 companies. All the rules and regulations should include in the Memorandum of Association and Articles of Association.
Zero benefits
The members of a Section 8 company obtain zero benefits or any perks out of the company. They can afford to repay their pocket expenses that might have occurred during the course.
No distribution of profits
The members of a Section 8 company can’t share the profits among them. The profits should only be used for the welfare of the company’s objective which goes around the advancement of science, art, sports, commerce, and environmental protection.
What is the procedure to register a Section 8 Company Incorporation?
- Application for Name Availability in the SPICe+ Form
- Apply for the name availability through the SPICe+ form facility. It is essential for Section 8 company to have words like Association, Forum, Foundation, Chambers, Confederation, Council, Electoral Trust, in its name.
- The applicant can be given two names at a time and can perform only one re-submission in the SPICe+ form.
Preparation of MOA and AOA
Memorandum of association functions as a permission of a company and clears the objective of the company. While an article of association of the company tells about the internal management of a company.
- Use Form INC-13 to file MOA of a Section 8 company, also, there is no prescribed format is mentioned for AOA of a Section 8 Company.
- Each Subscriber has to sign the memorandum and article of the association who will need to provide his name, description, address, and occupation.
Filling of SPICe+ Form
After submission of Spice+ form you’ll get the Incorporation Certificate in 3-4 days.
What are the essential documents for registering a section 8 company?
The given list shown some mandatory documents required to be submitted while the registration of Section 8 Company:-
Documents of Directors/Shareholder
Passport size photos
PAN Card of all the promoters
Address proof which can be electricity, telephone, gas bill, or bank statement
An identity proof which can be a driving license, passport, voter ID
Documents of Directors/Shareholder
Proof of premises which can be the telephone, water, or electricity bill
No objection certificate (NOC) from the owner
What Are The Minimum Criteria for Company Registered under Section 8 Company?
- Minimum 2 Shareholders for the private limited NGO, and 7 Shareholders for the public limited NGO.
- The directors and shareholders can be the same person (Minimum two Directors).
- Income-Tax PAN is a mandatory document in the matter of Indian nationals.
- DIN(Director Identification Number) and DSC(Digital Signature Certificate) for all the Directors.
- Any proof of residence such as bank statement, electricity bill, telephone bill, letter on house address.
- Proof of identity includes a Driving license, Voter ID, Aadhar Card, and a Passport which is an essential document in the case of foreign nationals.
- The important proof of registered office includes a rent agreement document with the latest rent receipt and a copy of recent utility bills against the name of the landlord.
Why EntrepreneurCell helps you for Section 8 Company Incorporation?
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- Easy and simple to do NGO Registration
- Full and extensive support in filling up NGO Registration
- Restrain through the whole registration procedure of Section 8 Company Registration
- Answers for all your questions and concerns
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Help Center
Frequently Ask Question
No, Section 8 company cannot provide small-scale financial services in the form of credit, loan, or savings. As it is not mentioned in any law but section-8 company cannot get approval for providing loans and credit.
Majority of cases, a Section 8 Company will be a company limited by guarantee not having a share capital. The liability of members-only occurs at the time of winding up of the company.
According to Section 8(1) (a),(b) and (c) of the Indian Companies Act, 2013, a section 8 company can be settled “ for encouraging science, art, religion, research, social welfare, sports, education, charity, protection of environment or any such other field.” provided the profits.
Cut off from that General Circular No. 21/2014 of MCA dated June 18, 2014 clarifies that contribution to corpus of a Section 8 company will qualify as CSR expenditure as long as
- The section 8 company is created exclusively for undertaking CSR activities, or
- Where the corpus is produced exclusively for the purpose directly relatable to the subject enclosed in Schedule VII of the Act.
The fees of the Section 8 company start at Rs 9,999 all depending on the process. Several applicants previously have DIN & DSC. So the process includes Section 8 company registration costs less because the application for DSC & DIN is bounced.
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