SECTION 8 COMPANY/NGO
Incorporation & Registration, NGO Registration, Company Compliances, Corporate Contract Drafting, Manage Finance & Accounting, Taxation, Government Mandatory Registration
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SECTION 8 COMPANY/NGO
Section 8 of the Companies Act, 2013, which pertains to an established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes. A Section 8 Company is similar to a Trust or Society; expect a section 8 Company is registered under the Central Government’s Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 Companies has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company also has higher credibility amongst donors, Government departments, and other stakeholders.
Requirement of creating Trust/NGO:
- Registration under State Act;
- Registration under Income Tax Act;
- Founder/Settler has to come to Delhi for presentation in the registrar office.
- Mandatory position like the President, Vice-President, Secretary, Treasurer, etc.
- For national level trust registration, it is mandatory that the concerned person should have a copy utility bill of Delhi.
- Aadhar card is necessary for trust formation in Delhi.
- Minimum two witnesses of Delhi are essential who should have Aadhar card.
- Two photographs of each of the members.
Merit of Section 8 Company/NGO:
- Exempted from certain income tax provision
- Donner avail benefit under section 80G
- Improved recognition
- Better legal standing
- Higher credibility amongst donors
- Support of Government departments
- Less stamp duty
- No minimum capital required for incorporation
- No need to used title i.e. Pvt. Ltd./Ltd
- Transfer of ownership right.
Demerit of Section 8 Company/NGO:
- The profits of the companies could only be used for its object fields only.
- There could be no distribution of its profits to its shareholders or partners
- No member related to such companies could be appointed as a remunerating officer.
- They could only be reimbursed for their pocket expenses that might have occurred in the course.
- Cannot alter or amend the Memorandum of Association or the Articles of Association without the prior approval of the central Government.
- The central government has imposed various conditions which have to be complied OR as directed by the central government.
Our services for establish your Section 8 Company/NGO:
- DSC & DIN
- Name reservation
- Trademark search for business.
- Drafting MOA & AOA & Filling
- MCA Government Fees & Filling
- Corporate Identification Number (CIN)
- PAN No. of company.
Documents required from all Directors for registering Trust/NGO
- Copy of Election ID Card
- Copy of PAN Card or Passport.
- Copy of latest bank statement
- Copy of telephone or electricity bill.
- Passport-sized photograph of all partners
- Copy of Notarized Rental Agreement/ registered lease deed
- NOC from owner/landlord (if any).
Section 8 Company Registration Procedure in India:
There are following steps are involved in the form of a NGO/Section 8 Company:
- STEP 1: Choose an apt name for your NGO and make sure that it does not resemble any already registered company or Limited Liability Partnership. This proposed named must be filed for reservation through Reserve Unique Name facility available on the MCA portal. Maximum 2 names can be filed through in one go.
- STEP 2: Once name is approved you are required to prepare the MOA and AOA of the organization along some other required documents like projected Profit and loss statement, statement of assets and liabilities, brief description of work etc.
- STEP 3: Once all the documents are prepared submit an online application to respective ROC for issue of License in Form INC-12.
- STEP 4: After review by the ROC, license is issued. Then, file incorporation application in SPICe Form along with the required document as attachments.
- STEP 5: After proper verification of the application Certificate of Incorporation (COI) will be issued. This COI will contain the Company Identification Number (CIN) along with Company’s PAN & TAN number.
