What is Section 8 Company and How to register it?

Posted by Enterslice India on January 9th, 2019

You might not have seen or heard about section 8 companies, however, you must have heard about NGOs. Section 8 company is one of the modes of setting up the NGO. Section 8 Company registration as an NGO is regulated under the Companies Act, 2013. These NGOs are basically operated for the promotion of art, social research, education, science, religion, commerce, social welfare, technology, charity and protection of environment etc.

Further, we will discuss section 8 company registration, benefits of NGO registration (section 8 company) etc.

Steps involved in Section 8 Company Registration

The process of NGO registration as a section 8 company is almost similar to the procedure of company registration, except a few additions. Let’s take a look at the step by step process of Section 8 company registration-

1. STEP1- Digital signatures

 The first step of NGO registration as a Section 8 company is to obtain the digital signatures of all the proposed members of the NGO. As these digital signatures will be required to sign the application of section 8 company registration and few other declarations

2. STEP2- Name approval

There is a RUN service available on the web portal of MCA (Ministry of corporate affairs), which can be used for the reservation of name. You are allowed to propose two names for the Section 8 company registration. The proposed names must not resemble any of the already existing registered names.

3. STEP3- SPICE Form

In this step, you need to draft the Article of Association (AoA), Memorandum of Association (MoA) and few other declarations.

In addition to the above, you need to file the INC 12 Form for obtaining the license for Section 8 Company registration.

There is also a provision to obtain the Directors Identification Number (DIN) at this step, in case the proposed directors of the company do not have the DIN.

4. STEP4- Incorporation of the Company

At last, you just need to submit the application of registration with the ROC. Once the application is approved, the certificate of incorporation along with the PAN and TAN will be issued.

Few Benefits of NGO registration as Section 8 Company

If you are thinking or looking to register the NGO as Section 8 Company then you must be aware of all the following benefits provided by it-

• No minimum capital requirement

There is no set limit of minimum capital requirement for starting the section 8 company. And the fee of NGO registration depends upon the investment of capital in the company.

• No stamp duties

During the registration process of section 8 companies, there are no stamp duties imposed; as it is against the provision of payment of stamp duties on MoA and AoA of the private limited companies.

• Legal entity

Section 8 Company is considered to be a separate legal entity, which lets it have an individual legal identity, distinctive from its members.

Hope you would be able to set up your own NGO as a section 8 companies in a hassle-free manner.

For more information please contact Enterlise.

Source url - http://articlescad.com/article/show/63904