Non-Government Organisation (NGO) is an organisation that serves charitable or non-profit purposes. The Ministry of Corporate Affairs governs an NGO that is established under Section 8 of the Companies Act, 2013, (‘Act’), whereas a trust or society registered under the State Government is managed by the registrar of the state.Section 8 incorporation of a company has more benefits than trust and society. This type of company is more trustworthy with government departments, donors, as well as other stakeholders. We will show you how to register an NGO under Section 8 Company. This is the Companies Act 2013.
What are the Benefits of Section 8 Company Registration?
Registering an NGO under Section 8, Company Act 2013, is a great way to get many benefits.
Separate Legal Identity
Limited liability
Exemption to the donors
No minimum capital
Tax Benefits
No Stamp Duty
What are the eligibility for Section 8 Company Incorporation?
A Section 8 company can be started in India by an Individual, HUF.
Multiple persons may be Directors or shareholders. They must comply with all requirements and compliances of Section 8 company incorporation.
At least one director must be Indian and should work in Section 8.
One or more of these objectives must be met: promotion of sports, financial assistance, advancement of science and arts, social welfare, education, and financial aid to low-income groups.
Directors, founders and members of the company can not receive any remuneration in cash or other forms.
Directly or indirectly, no profit should be shared among directors and members of the company.
What are the procedure for incorporting of Section 8 company?
Step 1: Obtain a DSC from the Section 8 Company’s proposed Directors. For a DIN, you will need to file Form DIR-3 with ROC once the DSC has been received. To obtain a DSC, you will need to attach the Proof of Identity and Address Proof.
Step 2: ROC will issue a DIN to directors once the DIR-3 has been approved.
Step 3: File Form INC-12 with ROC to request a Section 8 license.
Step 4: Once the form has been approved, an INC-16 license will be issued under section 8.
Step 5: After obtaining the license file the SPICe+ form with the ROC to incorporate along with all required attachments, as described above.