NGO Registration as Section 8 Company

INTRODUCTION

As the name itself suggest NGO or Non-government organization is an organization which is non-profit entities and formed not for the purpose of earning profits, rather it is formed for the purpose of promotion of commerce, arts, science, religion, sports, education, research activities, charity, or any other useful social object.

Key highlights of the article:

Meaning of Section 8 Company IncorporationMeaning of SocietyMeaning of TrustProcedure For Section 8 Company Registration OnlineFAQs on Section 8 Company Registration

In India NGO registration can be of three types:

Section 8 Company Incorporation under Companies Act, 2013Trust under Indian Trust Act, 1882Society under Society’s Registration Act, 1860

In this article we will discuss about the How an NGO can be registered in the form of Section 8 Company Registration. Let us first understand the meaning of section 8 company registration, society, and trust registration.

SECTION 8 COMPANY INCORPORATION

Section 8 company Registration refers to registration of an NGO in the form of Company whose names contains with foundation or association or council which is registered under Section 8 of Companies Act, 2013, which has the following features:

The main object of the Section 8 Company is the promotion of Science, Commerce, Sports Research Education, Social Welfare, Religion, Charity, Protection of Environment, Women awareness, Child welfare etc.Section 8 company utilizes its profits and income only for the promotion of its objects and for no other purpose.Section-8 Company cannot distribute any dividend to its members under companies Act 2013.Incorporation of Section 8 Company is nowhere required to get register its name with using the word using “Limited” or “Private Limited” however, its mandatory to use words like foundation, council, forum, federation, association, confederation etc. in its name in any manners just Example- SEVA BHAV FOUNDATION OR SEVA ASSOPCIATION OR COUNCIL FOR SEVA BHAV ETC. to get identified as a Non-Profit Organizations(NPO)

MEANING OF SOCIETY

Society is a formation of people who meet for starting a literary, scientific, or charitable purpose. Societies are registered under the Society Registration Act, 1860. It is commonly a group of 7 people who comes together for a similar charitable purpose. Memorandum of Association is an important tool in the registration of society.

MEANING OF TRUST

According to Indian Trusts Act,1882 trust means an obligation annexed to the ownership of property and arising out of a confidence reposed in & accepted by the owner for the  benefit of another or for another and owner.

Trust is also a charitable organization which can be of two types – Public and Private. And there is no requirement for public filing of accounts.

 ATTRIBUTES OF SECTION 8 COMPANY INCORPORATION 

 

Attribute

Description

Limited liability company

Section 8 company registration can be done as a limited liability company. It is strictly prohibited under Companies Act 2013 to register it as unlimited liability company

Non-profit objectives

Section 8 company is incorporated for social cause or public welfare as NGO, rather than earning profits.

No need for share capital

Section 8 company incorporation can be done as limited liability company either with share capital. It can also be incorporated as section 8 company without share capital as company limited by guarantee

License from MCA

Section 8 company after its registration is granted license under section 8 of companies act 2013 to register itself without using the word Limited or Private Limited

 

WHAT THE STEPWISE PROCEDURE FOR SECTION 8 COMPANY REGISTRATION ONLINE IN INDIA ?

 

The procedure for section 8 company incorporation online we can brief out with stepwise process here:-

Step-1: Name Reservation: PART-A

Firstly we need to decide about the Prefix of the name which will be recognized as a Brand of Section-8 and for Searching Name Availability for the proposed Section 8 Company on MCA, we have to go here https://www.mca.gov.in/mcafoportal/showCheckCompanyName.doFurther, For choosing a unique Prefix or brand for your Section-8 NGO we also need to check out the availability on Trademark public search Portal i.e. https://ipindiaonline.gov.in/tmrpublicsearch/frmmain.aspx.Now we have to file name application to CRC (a wing of MCA) in respective form prescribed as SPICe Part-A.Alternatively, Name application can be made in integrated incorporation form SPICe plus form as well along with Incorporation Directly.

Step-2: Digital Signature Application & Documentation of various drafts for Registration:

Need to apply for DSC of all Subscribers and Directors of the Section 8 CompanyApplication for DIN of all Directors will be filed with the Incorporation form part-B only. No separate application needs to be file for DIN (Maximum upto 3 DIN may be applied Through integrated incorporation form SPICe plus);Drafting of Physical MOA and AOA of the company subject to drafting of final object for the Section-8 and Code of Conduct in AOA;Drafting of various other documents which are required to be draft such as DIR-2, DIR-8, Projected Balance sheet for at least 3 years, and many more;

 

Step-3: Apply for Incorporation in SPICe PART-B

Applicants need to fill all web based form in SPICe PART-B along with other forms such as AGILE-PRO-S and INC-9 ;After preparation of forms in PART-B there will be some mandatory attachments to file and other verification formalities like OTP (Email & Phone) in form AGILE-PRO-S;After filing of PART-B, Challan of Incorporation will be generated and need to make Payment of Legal fees for Section 8 Company Registration subject to capital chooses as minimum and no stamp duty is application for Section-8 for PAN India;Once incorporation application is approved by CRC, it will issue Certificate of Incorporation (COI) and license issued by MCA under the hand of Registrar of Companies. Along with Certificate of Incorporation GSTIN, ESIC registration, EPFO registration, Professional Tax registration number will be generated.

 

FAQs on Section 8 Company Registration

If a trust can become a member of a Section 8 company?

Ans. There is no restriction in the provisions of Companies Act, 2013 for a registered trust to become a member of Section 8 company. In case of unregistered trusts, provisions of section 89 would be applicable.

Can OPC be incorporated or converted into Section 8 company?

Ans. No, as per Rule 3 of Companies (Incorporation) Rules, 2014, OPC is prohibited to be incorporated or converted into Section 8 company.

Whether secretarial standards are applicable on Section 8 Company?

Ans. No, Section 8 Companies are exempt from applicability of Secretarial Standards issued by ICSI.

 

Thank you for giving your valuable time for reading this article, if you have any questions regarding Section 8 Company Registration Online then please contact to our expert team at Compliance Calendar LLP at info@ccoffice.in or 9988424211.