What is Section 8 Company Registration in India?
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 successful completion of the registration process.
Benefits of Section 8 Company Registration
There are certain advantages of registering an NGO or NPO under Section 8 of Companies Act 2013. Some of them are as follows:
Tax exemptions - The section 8 of Company act defines a business entity those person is not to generate profits, but goodwill among public. And therefore, the government of India saw it fit to provide it several tax exemptions in India.
It is one of the greatest benefits of Section 8 Registration in India.
No minimum capital requirement - A Sec 8 Company incorporation under Section 8 requires no capital to get incorporated. And the reason behind it is simple. It’s altruistic nature motivates the government of India to incentivize its registration by reducing the Section 8 Company registration fees. And the way they do it is by removing any minimum capital requirement.
No stamp duty is requires - Since there is no net worth requirement, there is no need of a stamp paper to incorporate a Section 8 Company in India. It ensures that the directors can register a company without being encumbered by the stamp duty requirements.
Deductions for income tax - For a Section 8 Company, India has placed forth specialized income tax deductions. However, to obtain them, you must also acquire the 80G and 12A Registration for section 8 company in India.
Easily gathering Donations - Donations are the most viable form of earnings for a Section 8 Company, meaning the money acquired from donations is the only source of “income” for this business entity.
However, that money can’t go into paying the members of the business entity, but to promote of the company’s objectives.
You can manage the company easily - A section 8 company is governed by the rules specified in the Memorandum of Association. Thus, as long as you follow the objectives you have specified in your MOA to the tee, management won’t be an issue your company.
Freedom to choose the name - The name of section 8 companies in India need not have the words “Company” or “Limited” integrated with it. This business entity entail a term that emphasizes that the company is an organization – using words such as Foundation, Electoral Trust, Chambers, Federation etc.
These advantages of section8 company can only be enjoyed by those who meet the eligibility criteria.
Documents Required for Section 8 Company Registration in India
Following are the documents required for company incorporation for each director/ shareholder to proceed with section 8 company registration online.
For Directors/Shareholders, the section 8 Company Registration Documents are as follows:
- 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.
Process for Registering a Section 8 Company in India
The following process can be utilised for registering a section 8 company in India:
1. 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.
2. 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). This would be carried out as per the requirements under SPICE plus (Spice +)
3. 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.
4. 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 registration 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.
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.
How S.K. Agrawal & Co. Helps in Section - 8 Company Registration?
With , you can establish your section- 8 Company seamlessly. You can register your Section -8 Company in just 4 simple steps:
Step 1: Confirmation Mail Acceptance of our Proposal
Send confirmation mail at our email id regarding acceptance of our Proposal for Registration of Section - 8 Company. You can request a callback or directly call to our expert on phone number provided at our website. Our experts will contact you and clear all your queries.
Step 2: Send the Documents on our Email Id
Send below-mentioned documents on our email Id to incorporate/register your Section - 8 Company:
- Passport size photos of directors
- PAN Card or Passport in case of NRIs and Foreign National.
- Address proof of directors
- Specimen signature
- Self-declaration about your directorship in other companies
- Rent agreement of your registered office
- No objection certificate from the owner of the property of the property
The Section - 8 Company registration from S.K. Agrawal & Co. is completely online and thus, you can save time and money as you need not have to visit our office. If you want to visit to our office you are most welcome.
Step 3: Document Verification by our Expert Team and Signature of Documents
Our expert team will verify the documents uploaded by you. You will need to attest your signature on the documents.
- Digital Signature Certificate Application
- Company Name Reservation
- Filing of e-forms with ROC
After the company forms are filed on the MCA portal, the Registrar of Companies (ROC) and the respective departments will verify the forms submitted by our expert team. The verification process takes around 5-7 days (subject to departmental approval and reverts from the respective departments).
Our expert team will follow up with the respective authorities till you receive the Incorporation Certificate. After the verification process is complete, you will receive the Incorporation Certificate along with PAN and TAN in about 5-7 days.
Service Area
We provide strategic and qualitative advisory services to all our clients from domestic to international organizations, small, medium and large sized enterprises, assisting them with their incorporation and quality management services so they can establish their business successfully globally. To help them deal with their tax issues, financial and legal requirements we provide all support for post incorporation services, so they are able to run their business seamlessly. We are based at New Delhi and Faridabad, but our wings are spread to serve clients across the globe. Customer Satisfaction, Quality of Service and our Turnaround time are the drivers of our enthusiasm and success. We are continuously serving our client at Faridabad, Delhi, Gurgaon (Gurugram), Noida (Gautam Budh Nagar),Ghaziabad, Sonipat, Panipat, Palwal, Jind, Karnal, Meerut, Hapur, Kolkata, Mumbai (Bombay), Pune, Bangalore, Nasik, Aurangabad, Nagpur, Ludhiana, Amritsar, Mohali, Hyderabad, Bareily, Kanpur, Agra ,Mathura, Baddi, Rudrapur, Haridwar, Siliguri, Jamshedpur, Hubli, Bihar and many other Industrial Areas.