Online NGO Registration: Section 8 Company Under Companies Act, 2013

NGOs established under Section 8 are independent non-profit Organization that are typically set up to promote art, science, culture, education, research, religion, and raise concerns about socio-environmental issues.

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NGOs In India

NGOs are non-governmental Organizations independently led by groups, individuals, or communities at national or international level who work for the improvement of society. These entities usually work with a humanitarian goal. In India, you can register your NGO under three structures, which are as follows:

  • Trust Registration (The Indian Trust Act, 1882)
  • Society Registration (Societies Registration Act, 1860)
  • Section 8: Company Registration (The Companies Act, 2013)
Section 8 NGO Company

Companies established under Section 8 (1) (a), (b), and (c) of the Indian Companies Act, 2013 typically work for the promotion of art, science, sports, religion, social welfare, the environment, education, research, charity, and the objectives of the benefits of the environment. The Section 8 company was the immediate result of this need that was felt to have more transparency in the formation of NGOs. The Ministry of Corporate Affairs decided to allow the formation of Section 8 companies via the Registrar of Companies.

Roles and Functions of NGOs In India

Non-governmental Organizations, first recognized with the establishment of Servants of India, which was a secular NGO set up in 1905, have no single formal definition. They are generally addressed as non-profit entities that act as a mediator between the government and civilians.

They operate outside the government’s influence and carry out activities like social rights work, addressing political changes on a broader scale, society’s development, advocating human rights, etc.

Minimum Eligibility to set up an NGO under Section 8 Company

The interested Organizations or corporations ought to be authorized by the applicable laws or regulations and must fulfill the following requirements:

  • There should be at least 2 members/shareholders in a company. However, the number of shareholders should not exceed 200.
  • There should also be at least two directors and out of which one director should be the resident in India.
  • A Section-8 co can only have its main objects relating to any social cause only.
  • Payment of dividends/distribution of profits is restricted in case of a section-8 company. Further the company’s profit can only be applied for the furtherance of its main objects.
Advantages of Setting Up an NGO Under Section 8 Company in India
  • Distinct legal identity.
  • It allows more tax savings.
  • Much easier compliance.
  • Easy to formulate.
  • Ease of establishing international collaborations
  • No minimum capital is required.
  • Transfer of ownership and title.
  • Easy government funding is available.
  • Protection from personal liability.

Documents Required for Registering an NGO in India

  • PAN Card
  • Identity proof of the applicant/directors/members
  • Proof of registered office address.
  • Electricity bill (no more than 2 months old)
  • Aadhar Card
  • Voter ID
  • Passport-size photographs
  • DIR-2 (Director’s consent) along with address proof
  • NOC
  • INC-14 Declaration by professionals
  • INC-15 Declaration by promoters (on stamp paper which is duly notarized)
  • Affidavit regarding deposits
  • Annual income estimate
  • Memorandum of Association and Articles of Association
  • Personal details of the promoters and the directors
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How to Register as an NGO-Section 8 Company in India?

types of company registration

For the convenience of applicants, NGO registration under Section 8 company can be done online by following the steps mentioned below:

Step 1: Applying for DSC (Digital Signature Certificate) & DIN (Director Identification Number)

The directors must initially apply for a digital signature and a DIN. A digital signature is an electronic signature that is used for filing, and by “DIN” we mean the Directors’ identification no. that the MCA has granted. The directors can skip this stage if they already have DSC and DIN.

Step 2: Apply for a company name reservation

For Section 8 NGO company registration, MCA will demand unique names. Ideally, The name should fulfill the following:

  • The name should be meaningful.
  • The name of your proposed company should be unique.
  • The company name should reflect the activity your NGO will be taking up.
  • The name of the company should be legal and should not be offensive in any manner.

Step 3: Filling SPICe+ form

Our team of experts will fill out a new application for Section 8 NGO company registration.

SPICe+ Part A: At this stage, we will make sure to mention the type of company you want to create, its classification, company category, the main division you will be operating from, and the company’s description, among other information.

SPICe+ Part B: Here our experts will complete the second stage of the SPICe+ form in which we will complete structural information about your company, such as the number of shares, total subscribed shares, total authorized shares capital, etc.

Step 4: Receiving NGO Section 8 Company Incorporation Certificate and Licence

It may take around 7-10 days to obtain the CIN (company incorporation certificate). This certificate is proof that your NGO now exists legally. PAN and TAN will be issued along with the incorporation certificate only.

Section 8 Company Registration of NGOs is completely online in India.

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Why Choose JustStart For Register Section 8 Company

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A non-governmental organisation, commonly known as an NGO, is a company that operates independently of governmental control with the aim of addressing social or political issues.

In India, there are several types of NGOs. The names of the few are as follows:

  • National NGOs
  • International NGOs
  • Community-based NGOs (CBOs)
  • Citywide NGOs

Well, the process of NGO registration involves applicants completing a few steps, starting from deciding the cause to register an NGO, to setting up the board of directors for it, and finally deciding the name of the NGO itself. And of course, there are other stages like incorporation and getting an NGO registered on MCA’s (Ministry of Corporate Affairs) portal.

As previously stated, the process of registering an NGO in India is entirely ONLINE. applicants may need to present some necessary paperwork for this.

Not necessarily. If you hire the right help like JUSTSTART, We are the experts that know the ins and outs of NGO registration services in India. So, if you are worried that your papers might not be as good as you want them to be, you can always hire us for good NGO registration services in India.

According to industry experts, a single person cannot establish an NGO alone. There must be at least two members.

No. NGO registration under Section 8 companies is no different than wanting to register another type of NGO such as social, international, or national. However, there might be a few more additions in the paperwork that applicants need to fulfill in the case of setting up an NGO at the international level.

By nature, the purpose of setting up these Organizations under the Companies Act is to help society. However, NGOs registered under Section 8 companies are companies that work as per well-defined constitutions and follow specific criteria and do not run for individual profits. In the case of company liabilities, the shareholders of these companies are bound to pay the debts up to a fixed amount.

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