Section 8 Company Registration in India (NGO)

"Registering a Section 8 company is now easier than ever with FastLegal. Get your NGO company registered in just 7 working days for only @8000/-+GST(includes govt.fee) "

"With FastLegal, you receive professional help and assistance throughout the process, ensuring you obtain your certificate of incorporation quickly and hassle-free."

Register your Section 8 company online with Fastlegal

With our team of experts easily register your section 8 company completely online in 3 simple steps-
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Fill the form and provide documents
Just fill your contact details and share required documents for company registration.
approve
Sign and share the documents
Our team of experts will share required document for signatures, just sign and share scanned copies.
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Filing of registration application with ROC
Registration application is filed with concerned ROC and we will keep you updated on status.

Director or Shareholder Requirement for Section 8 Company Registration

(Minimum Persons Required)

  • A minimum of two directors are required for section 8 company registration.
  • Directors or shareholders can be the same persons, i.e., 2 persons can start a section 8 company as shareholders and directors.

Documents Required for Section 8 Company Registration

(Initially, you need to provide the following information)

  • Name of proposed NGO
  • Objects of the NGO
  • State of registration
  • Email addresses and contact numbers of Directors/Shareholders

Documents Required:

Identity and Residence Proof of Directors/Shareholders:

  • Scanned copy of PAN Card
  • Scanned copy of Aadhaar Card/Driving License/Voters’ Identity Card
  • Bank statement/electricity bill or any other utility bill not older than 2 months (should be in the name of Director or Shareholder only)

Documents for Registered Office of NGO:

  • Scanned copy of electricity bill or no objection certificate in case of owned property
  • Scanned copy of rent agreement, electricity bill, and no objection certificate if the registered office premise is rented
  • Scanned copy of sale deed/property deed and no objection certificate in case of owned property and no electricity bill is available.

Section 8 Company (NGO) Registration Package Inclusions:

  • Digital Signature of 2 Directors.
  • DIN of Directors
  • Drafting of MoA & AoA of the NGO
  • Filing of company registration application with Registrar of Companies along with MoA, AoA, and application for the allotment of PAN and TAN.
  • Certificate of Incorporation
  • PAN of the Company
  • TAN of the Company
  • PF & ESIC registration of the Company
  • Assistance in opening a bank account.

Features of Section 8 Company

The features of a Section 8 Company (under the Companies Act, 2013 in India) are as follows:

  • Non-profit Objective: Section 8 Companies are formed with the primary objective of promoting social welfare, charity, education, art, science, sports, research, religion, or any other philanthropic purpose. Profit-making is not the main motive.
  • No Dividend Distribution: Any income generated by the company must be utilized for the promotion of its objectives. It cannot distribute dividends to its members.
  • Limited Liability: Like any other company, the liability of the members is limited to the extent of their shares or guarantee, protecting them from personal liabilities.
  • Minimum Members: A Section 8 Company must have a minimum of two shareholders and two directors. However, there is no upper limit on the maximum number of members.
  • Name Restrictions: The name of a Section 8 Company must end with “Foundation,” “Association,” “Society,” “Council,” “Charity,” “Institute,” “Organization,” “Federation,” or other similar words.
  • No Share Capital: Section 8 Companies do not have share capital. The members’ contributions are considered as donations or subscriptions towards achieving the company’s objectives.
  • Central Government Approval: To incorporate a Section 8 Company, prior approval from the Central Government is required.
  • No Need for “Limited” in Name: Unlike other types of companies, a Section 8 Company is not required to use the word “Limited” after its name.
  • Tax Benefits: Section 8 Companies enjoy certain tax exemptions and benefits under the Income Tax Act, making it attractive for philanthropic endeavors.
  • Alteration of Objectives: Changing the objectives of a Section 8 Company requires prior approval from the Central Government.
  • Compliance Requirements: Section 8 Companies must adhere to various compliance requirements, including annual filings, board meetings, and financial audits.
  • Winding Up: If a Section 8 Company needs to be dissolved, its assets must be transferred to another Section 8 Company with similar objectives, or they should be given to the government or a registered charitable organization.

These features make Section 8 Companies an essential vehicle for individuals and organizations aiming to make a positive social impact without focusing on profit-making.

Section 8 Company (NGO) Registration Process

(The registration process for a Section 8 Company (NGO) in India involves several steps and requires adherence to the Companies Act, 2013. Here’s a general outline of the registration process:)

  • Name Reservation: The first step is to apply for name availability through the Ministry of Corporate Affairs (MCA) portal. The proposed name should comply with the naming guidelines for Section 8 Companies.
  • Incorporation Application: Once the name is approved, file the incorporation application (SPICe+) along with the necessary documents. The application must include the memorandum of association (MOA) and articles of association (AOA) with specific clauses as per Section 8 Company requirements.
  • Digital Signature Certificate (DSC): Obtain DSC for all proposed directors and subscribers. This is necessary for signing electronic documents during the registration process.
  • Director Identification Number (DIN): Apply for DIN for all proposed directors. DIN is a unique identification number required for individuals to become directors of a company.
  • Prepare Documents: Prepare all the required documents, including affidavits, declarations, and consent letters from directors and shareholders.
  • Obtain Necessary Approvals: Depending on the jurisdiction, some Section 8 Companies may require approval from the respective state government or the Central Government. For certain specific purposes, like healthcare or education, additional approvals from the concerned ministries might be necessary.
  • File Incorporation Forms: File the SPICe+ form along with the required attachments, including MOA, AOA, and other supporting documents, with the Registrar of Companies (ROC).
  • Payment of Fees: Pay the necessary registration and stamp duty fees as per the prescribed rates.
  • Verification and Processing: The ROC will verify the application and, if all requirements are met, issue a Certificate of Incorporation. This certificate confirms the formation of the Section 8 Company.
  • Apply for PAN and TAN: After obtaining the Certificate of Incorporation, apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
  • Bank Account Opening: Open a bank account in the company’s name and deposit the minimum required capital.
  • Commence Operations: Once the above steps are completed, the Section 8 Company can begin its operations and carry out its charitable objectives.

Please note that the registration process may vary slightly depending on the specific requirements of the proposed Section 8 Company and any changes in regulations. It is advisable to consult with a professional or a company registration service to ensure a smooth and compliant registration process.

Why Fastlegal

We make it easier for entrepreneurs to get their Section 8 company (NGO) registered online from the comfort of their home. With Fastlegal, you can get your section 8 company registration done in just 7-10 working days. We provide a comprehensive package that includes not only the registration process but also guidance through the entire process. This includes company name verification, filing of the documents, obtaining Director Identification Number and Digital Signature Certificate, getting the company registered with the Registrar of Companies, and more. Additionally, we also offer post-registration services like GST registration, filing of annual returns, and maintenance of statutory records.

Frequently Asked Questions (FAQs) about Section 8 Company (NGO) Registration:

  • A Section 8 Company is a type of non-profit organization established under the Companies Act, 2013 in India. It is formed with the primary objective of promoting charitable activities, social welfare, and other philanthropic purposes. Such companies are prohibited from distributing dividends to their members.

The main objectives of a Section 8 Company include promoting arts, science, commerce, education, sports, social welfare, charity, religion, and other charitable activities. The primary focus is on social impact rather than profit-making.

While a Section 8 Company can generate income through its activities, the profits earned should be utilized solely for the promotion of its charitable objectives. Distribution of dividends to its members is not allowed.

A minimum of two directors and two shareholders are required to form a Section 8 Company. There is no upper limit on the maximum number of members.

Yes, foreign nationals and Non-Resident Indians (NRIs) can become directors and shareholders of a Section 8 Company subject to certain conditions and compliance with Indian laws.

Yes, the proposed name of the Section 8 Company needs to be approved by the Registrar of Companies (ROC) through the Ministry of Corporate Affairs (MCA) portal before proceeding with the registration process.

The registration process for a Section 8 Company involves submitting the necessary documents, such as the memorandum of association (MOA), articles of association (AOA), director’s identity proofs, and address proofs. Additional approvals may be required from the Central or State Government, depending on the company’s objectives.

Section 8 Companies enjoy certain tax exemptions under the Income Tax Act, such as exemption from income tax on their surplus income if utilized for charitable activities. However, the company is required to comply with relevant tax regulations to avail these benefits.

Yes, a Section 8 Company can be converted into a different type of company, subject to the approval of the National Company Law Tribunal (NCLT) and compliance with relevant procedures.

Section 8 Companies must adhere to various compliance requirements, including holding regular board meetings, filing annual financial statements, conducting audits, and maintaining proper records as per the Companies Act, 2013.

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