Companies registered under section 8 of the Companies Act are those corporate entities which are registered for charitable works. Their main objective is charitable work. Such entities fall under the category of non government organizations or we can say that there are three types of NGOs out of which one is section 8 companies. In order to know more about them make sure you will go through the present blog till its last line.
What are Non-government Organizations?
Non-governmental organizations are those that are founded to carry out philanthropic activity. These organizations cannot be created with a profit purpose. There are three categories of NGOs: society registration, trust registration, and section 8 corporate bodies. If you want to form an NGO with all of the benefits of a corporate body, you can do so through Section 8 business online registration.
What is Section 8 Company?
A section 8 corporation is a business entity that is formed only for philanthropic purposes and has no profit motivation. Such corporations are founded in accordance with the rules of the corporations Act, which is the governing law for corporate bodies. Such corporations can be formed online using the Ministry of Corporate Affairs’ website. In order to form such entities you need to take expert help because it involves a lot of paperwork. In order to complete that paperwork make sure you will take advice from an expert like StartupFino. In order to register such an entity it is really important to have all the section 8 company registration documents.
Documents Required to get Section 8 Company Registration
The list of certain crucial documents required for Section 8 companies is given below:
- Identity as well as address proof of both the directors and shareholders must be collected
- PAN card and Aadhaar card of directors are required during the process of registration of the entity
- Passport-sized photographs of directors which must be recent one
- Address proof of the registered office must be there with you in order to complete the registration process
- Memorandum of Association (MoA) as well as Articles of Association (AoA) are the two most important documents which are required in order to register a corporate body in India
- NOC from the landlord if the office of the company is on rent
- Utility bills of the registered office must be collected
- Declaration by directors and shareholders.
- Affidavit of non-acceptance of deposit.
Procedure to get Registration of Section 8 Company
Given below is the step-by-step procedure to get Section 8 Company Registration in India. Follow the steps given below to register your Section 8 company:
- Visit the government or official portal of the Ministry of Corporate Affairs
- File the application for name approval
- Once the name is approved, complete the SPICe+ Part A form and submit
- After the submission of the above form second form, SPICe+ Part B will open
- Fill out the SPICe+ Part B form and submit it
- Now the application of the registration will be examined by the registrar of the companies
- After the successful verification, the incorporation certificate will be issued with in 10-15 working days
Benefits of Registration of Section 8 Companies in India
Some of the key benefits of registering such an entity are:
- Tax Exemptions through which you can enjoy tax breaks on income.
- Limited Liability which shields personal assets.
- Charitable Activities which promote social causes.
- Brand Credibility has boosted trust as a nonprofit.
- Access to Grants which makes you eligible for government funds.
- Perpetual Existence which makes you continue despite changes.
- Easy Fundraising which facilitates donations and grants.
- No Minimum Capital requirement.
Conclusion
Section 8 company registration in India, which is an NGO focused on charitable purposes, several important documents are required. These documents play a really important role in completing the online procedure of registration of such entities. This Section 8 company registration allows the NGO to pursue its charitable objectives legally and access potential government support, including tax benefits under the Income Tax Act of 1961. It’s crucial to ensure all necessary documents are correctly attached to the application to prevent rejection or queries from the ROC during the registration process.
FAQs
- How to register a Section 8 company in India?
By filing all the documents before the competent authorities through MCA one can register such companies online in India. The registration process is simple only if you know about the same, otherwise expert help will be needed in order to register such an entity.
- What are the benefits of Section 8 company registration?
Some of the key benefits of such company registration includes status of juristic person, limited liability, reliability, credibility, build customer trust, helps in business expansion, makes business reliable, transparency etc.
- Is Section 8 Company formed for Charitable purposes?
Yes, Section 8 Company formed for Charitable purposes in India under the company laws and it is one of the key types of NGO. one cannot form such an entity with the profit motive.
- Can I register a Section 8 company on my own?
If you are aware about the complete documentation and the process you can register it on your own. But if you are not then don’t try it because it is a lengthy process and involves lots of technicalities.
- Does Starupfino help in the registration of the Section 8 companies?
Yes, Starupfino helps in the registration of the Section 8 companies in India.
- How Startupfino helps in the registration of Section 8 companies?
By filing all your paperwork as well as registration application before the registrar of the companies under whose jurisdiction your registered office falls, startupfino helps in the registration of such entities.
- Is it mandatory to register your NGO as a Section 8 company?
No, it is not at all mandatory to register your NGO under such an entity. One may register an NGO as trust and society as well.
