NGO, Section 8 Registration
Why register NGO under Section 8 of Companies Act?
Section 8 company is suitable for the non-profit objectives such as the promotion of commerce, art, science, sports, education, research, social, welfare, religion, charity, protection of the environment and the like. It is registered under Companies Act, 2013 on Ministry of Companies Affair portal. Section 8 NGO gets Central level recognition.
Categories of NGO Registration
Societies registered under section 20 of the Societies Registration Act 1860.
Trusts formed under Indian Trusts Act 1882
Section 8 Company as per Companies Act,2013
Benefits of Section 8 registration
- As a non-profit organization, a Section 8 company organization gets several tax benefits. In fact, there are some provisions in which they are exempted from paying income tax.
- Unlike a limited company, a section 8 company doesn’t have to minimum share capital. It means that even if you don’t have any capital to put into your Section 8 Company, you can set it up.
- Section 8 Company doesn’t have to add “limited company” at the end of its name. It’s not required for this type of company to use any title either.
- Transferring the ownership is easy: As the structure of this non-profit organization is same as the company, it’s easy to transfer its ownership within its members.
- It is more trusted than other organizations: Anyone can start a non-profit organization, but it’s the section 8 company that is seen credible by the government, and the people. Therefore, it’s almost certain that your NPO, once you register it as a Section 8 Company, would receive more donations.
- Certificate and License issued by the Ministry of corporate of affairs.
- Can open number of branches in all over India.
- NGO gains the legal status on central level.
- It is completely registered online.
- It gets registered in maximum 7 to 10 days.
Registration Requirement for Section 8 Company
- Minimum 2 members are required.
- DIN of 2 Members
- Digital signatures of all the directors are required
- There is no capital requirement
- Minimum 1 director must be resident in India
- For registered address address proof like rent agreement/ electricity bill (not less than 2 months) is required.
Procedure to obtain registration
- Firstly apply for Digital Signatures (DSC) of the proposed directors.
- Check and apply for name availability and make sure that the name applied for the proposed Company does not resembles to any other name of the existing Company.
- Once the name gets registered then apply to Registrar of Companies with all the relevant other documents required for obtaining certificate of Incorporation.
- Two proposed name of the NGO, Mobile No, Mail Id and Photograph of the all Directors
- Self attested copy of PAN of all Directors
- Self attested Copy of Passport/DL/Voter ID of all Directors
- Latest 2 months Bank statement of all directors
- If the registered office address is on lease then NOC from the owner of the registered address of the Company
- PAN cards are mandatory
- Identity and address proof of the landlord of the Company.