Procedure for Registration of Section 8 Company

As the name suggests, these entities work towards the wellbeing of the society and bridges the gaps at places where Government can’t reach effectively due to many factors. Such organizations are known as non-profit organizations or non- government organizations.

These organizations are registered under of Companies Act 2013 as Section-8 Companies. The main objective of the Company is to promote art, commerce, sports, safety, science, research, healthcare, social welfare, religion, protection of the environment, etc.   The profit of non-profit organizations is used for promoting only objects of the company.

NGO Registration:- 

NGO or Non-Profit Organization have 3 legal forms:

1. Trusts
2. Societies
3. Section 8 Companies

But due to better laws, Section 8 Company Registration have the most reliable organizational structure. 

Benefits for Sec 8 Company Incorporation

1. Number of privileges and exemptions under Companies Act vied notification dated 05th June, 2015.
2. NGO no need to pay the Stamp duty for registration.
3. Registered partnership firm can act as a member of section 8 company.
4. Income Tax Act provides tax deductions to the donors of the Company u/s. 80G.
5. Section 8 Companies can be formed with or without share capital
6. The shares of the members in Company is movable so it is easier to become or leave the membership of the Company or otherwise it is easier to transfer the ownership.

Process for Incorporation of Section 8 Company

1. Apply for the Reservation of the name through “RUN service” on the MCA portal along with the fees of Rs. 1000. 
2. License application to the Central Government shall be made in form INC-12 along with the following documents:
3. Drafted memorandum and articles of the proposed Company
4. Declaration in Form No. INC.14 by professional that provision of memorandum and articles are in compliance with section 8 and corresponding rules and requirement of the act have been complied with
5. Estimated plan for future annual income and expenditure for next 3 years
6. Declaration by each of the persons making the application in Form No. INC.15
7. Now apply for the Company Registration by filing the SPICE INC-32 along with the e- MOA & AOA
8. After the form is uploaded, certificate of Incorporation will be issued with CIN, PAN, TAN.