Get Your Section 8 Company Registration (NGO) – A Guide for Non-Profit Organizations
Introduction
Are you passionate about making a positive impact on society? If you’re starting a non-profit organization (NGO) in India, registering as a Section 8 company under the Companies Act, 2013 can provide you with a strong legal framework and tax benefits. This guide will walk you through the process of Section 8 company registration, highlighting the benefits, requirements, and steps involved.
What is a Section 8 Company?
A Section 8 company is a special type of company in India that is formed for charitable or non-profit purposes. It operates for the benefit of the public, promoting social welfare, education, religion, art, or other charitable activities. Section 8 companies are exempt from paying income tax on their income generated from their charitable activities if it’s registered under section 12AA of income tax act.Incorporation of Section 8 Company does not required stamp duty as Memorandum of Association (MOA) and Article of Association (AOA) of the private limited company does not allow the same
Benefits of Registering as a Section 8 Company
- Charitable Status: Grants your organization official recognition as a non-profit entity.
- Tax Exemptions: Allows for exemption from income tax on income derived from charitable activities.
- Public Trust: Enhances credibility and trust among donors and beneficiaries.
- Legal Framework: Provides a clear legal structure for managing your organization.
- Fundraising: Simplifies fundraising efforts by allowing for tax-deductible donations.
Eligibility Criteria for Section 8 Company Registration
- Charitable Purpose: Your organization’s primary objective must be to promote charitable or non-profit activities for the public benefit.
- Minimum Members: A minimum of 2 members is required to form a Section 8 company.
- Indian Resident Directors: At least two directors must be Indian residents.
- Registered Office: A registered office address in India is necessary.
Steps for Section 8 Company Registration
- Name Reservation: Check availability and reserve a suitable name for your Section 8 company.
- Drafting Documents: Prepare the Memorandum of Association (MoA) and Articles of Association (AoA) outlining your organization’s objectives and governance.
- Obtain DIN and DSC: Obtain Director Identification Numbers (DIN) and Digital Signature Certificates (DSC) for the directors.
- Filing the Application: Submit the required forms, including SPICe+ form, MoA, AoA, and other supporting documents to the Ministry of Corporate Affairs (MCA).
- Verification and Approval: The MCA will review your application and grant approval if all requirements are met.
- Post-Registration Compliances: Ensure compliance with ongoing regulatory requirements such as annual filings, financial reporting, and maintaining statutory records.
Documents Required for Section 8 Company Registration
- Identity and address proof of directors and members.
- Passport size photographs of directors.
- No-objection certificate from the property owner for the registered office address.
- Draft MoA and AoA.
- Other supporting documents as required by the MCA.
Mandatory Compliances by Private Limited Companies in India:
1. Board Meeting.
2. Annual General Meeting (AGM)
3. Appointment of the Auditor (Form ADT-1)
4. Director Disclosure.
5. Accounts to be Audited by a Statutory Auditor.
6. Filing of Form MGT-7.
7. Filing of Financial Statement (Form AOC-4)
8. Statutory Audit of Accounts.
Consequences of Noncompliance
| S.No | Section | Form | Compliances Particular | Non-Compliance Penalty |
| 1 | Section 139 (6) | Form ADT-1 | Appointment of first auditor within 30 days of registration | – |
| Hold office till the conclusion of first AGM | – | |||
| 2 | Section 184(1) | Form MBP-1 | Director to disclose interest in other entities in first board meeting of each FY | Imprisonment up to 1 year OR fine up to INR 1,00,000 OR both |
| 3 | Section 10(A)(a) | INC-20 A | File for commencement of business within 180 days of registration | Company: INR 50,000; Officer: INR 1000/day (max INR 1 Lakh) |
| 4 | Section 173(1) | – | Hold first board meeting within 30 days of incorporation (physical or virtual attendance) | Officer responsible for notice: INR 25,000 penalty |
| 5 | Rule 12A of Companies (Appointment and Qualification of Directors) Rules 2014 | Form DIR 3 KYC | All directors to file KYC by Sep 30th every year | DIN deactivated (reactivation fee INR 5000) |
| 6 | Section 164(2) & Section 143(3)(g) | Form DIR-8 | Every director to file disclosure of non-disqualification in each FY | – |
| 7 | Section 88 & other Sections | – | Maintain statutory registers (Director, Shareholding, Member, Transfer, Related Party etc.) | Company & Officer: INR 50,000 – INR 3 Lakh (continuing penalty: INR 1000/day) |
Fees and Costs:
The registration process involves fees, including government fees, professional fees for legal assistance, and other associated costs. We offer competitive and transparent pricing for our services.
Ready to Take the Next Step?
Start your journey towards a successful Section 8 Company!
- Get a Free Consultation: Connect with our expert team to discuss your specific needs and learn more about the registration process.
- Request a Quote: We provide transparent and competitive pricing for our services.
Contact Us Today!
- Email: [email protected]
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- Phone: +91 80762 22021
We look forward to helping you navigate the complexities of business registration and compliance services. Thank you for choosing SigmaTenders!