A Section 8 Company, a non-governmental organization(NGO), refers to a group of individuals united to perform community service to help the needy. The primary objective of an NGO is to uplift the underprivileged and become the voice of the voiceless.
There are three categories of NGOs in India: Trusts, Societies, and Section 8 Companies. These companies come under the control of the Ministry of Corporate Affairs (MCA).
What Is Section 8 Company for NGO Registration?
According to the Companies Act 2013, a Section 8 company is defined as promoting the fields of art, environment protection, commerce, science, research, sports, charity, religion, social welfare, etc.
Section 8 Company Registration is of utmost importance to enhance the credibility of your NGO and become eligible to accept foreign donations to perform community service.
Benefits of a section 8 company To Register NGO
As mentioned above, Section 8 Company Registration can significantly improve the credibility of your NGO and make it eligible to accept donations from abroad. But apart from these two important advantages of Section 8 company, some more advantages are worth noting.
- Exemption from any name:- Section 8 Company is not bound to stick to the terms Limited or Private Limited in the matter of their name.
- Separate Legal Entity:- NGOs registered under Section 8 Company Act, 2013 have a separate legal status. This means that the existence of the organization is independent of its members.
- Tax Benefits:- Once an NGO is registered under Section 8 of the Companies Act, 2013, it is exempted from paying income tax and can enjoy tax benefits under Section 80G of the Income Tax Act, 1961.
- Perpetual Succession:- Once an NGO is registered through Section 8 Companies Act, 2013, its existence will be perpetual and the NGO will not cease to exist even if all its members cease to exist or die.
Eligibility Requirements For Section 8 Company Registration As NGO
For Section 8 company registration as an NGO, an individual must meet the following parameters that have been set by the central government.
- Minimum 2 people: A minimum of two directors or shareholders is required for Section 8 company registration as an NGO. The maximum limit is 200.
- Indian Resident: One director must be a resident of India.
- No Minimum Capital Requirements: There are no minimum capital requirements for registration as an NGO. It depends on the business requirements.
- Business objects must be social or welfare-related. The NGO Company aims to promote commerce, social, science, sports, research, religion, the environment, and charity. They aim to promote these activities through non-profit organizations.
- Non-profit distribution: Members aim to promote cultural activities, commerce, and science to promote the company’s goods; members should refuse to pay the dividends.
However, Section 8 Company is a business whose aim is to promote the business objects for non-profitable purposes.
How To Register An NGO Under Section 8?
Step 1: Get Registered Through Juststart’s Credible Assistance
Registered your Section 8 company NGO through Juststart’s Credible assistance by just providing your documents. Our team will handle all the documents and let you register your business.
Step 2: Obtain DSC
Obtain the digital signature of the proposed directors by providing proof of identity (photograph, email ID, contact number, and proof of address).
Step 3: Get the Name Approved
Once you get the digital signature of the proposed directors, file the name application with the MCA by providing the proper significance of the name and the business objects of the NGO company.
Step 4: Apply for a License and Certificate of Incorporation
After the name application is approved, apply for the other e-forms with the MCA. The other e-forms are prescribed as per the Companies Act, 2013.
Step 5: Your Section 8 Company Is Now Functional
Section 8 Company is functional, as when the MCA approved the forms. You will receive your company’s Certificate of Incorporation, PAN, and TAN.
Faqs
What Are The Different Types Of Section 8 NGOs?
There are different types of Section 8 NGOs based on their business structure and mission. They have a charitable orientation and promote commerce, social, science, sports, research, religion, and environment-based companies.
Which Of The Following Acts Is Correct For Section 8 NGO Registration?
An NGO should be registered as a Section 8 company, commonly known as a non-profit organization, as per the provisions of the Companies Act, 2013.
However, the NGO’s should be registered as per the Companies Act, 2013.
What Is A Section 8 Company NGO?
A Section 8 company NGO is a non-profit organization established as per the Companies Act, 2013 (Act). It is governed by the Ministry of Corporate Affairs.
It is a type of organization that promotes religion, environment, charity, science, art, culture, commerce, and other objects of public interest intending to be non-profit.
Conclusion
NGO Registration Under Section 8, a company is a unique legal structure for entities that aim to promote cultural activities, art, science, religion, charity, and education with the objective of non-profit making.
Section 8 NGO Company has socially impactful objectives. This type of entity has privileges and exemptions granted under the Companies Act, 2013. It is one of the best entities for promoting cultural activities, science, art, education, religion, or environmental cases.
