A section 8 company is registered to proselytize non-profit objectives such as trade, arts, commerce, charity, education, religion, sports research, environment conservation, and social welfare. It's the most eminent type of non-profit organization (NGO). Section-8 companies are expected to expend the accumulated profits or other income for the publicity of these purposes. The payment of such entities cannot be employed for addressing dividends-based obligations.
Section-8 companies secure registration from the Ministry of Corporate Affairs and are obligated to comply with the norms underpinned by the government. These companies are licensed under section 8 of the Companies Act, 2013. As per the regulations formulated, if any company registered under section 8 breaches the rules and regulations prescribed by the central government or is incapable of satisfying the requirements for a non-profit organization, then the major the government might take strict legal action against all the members of the company and eventually, the company shall be winded up. There are various advantages of section 8 company as from the entrepreneur’s point of view. The advantages of section 8 company include a lot of things from the ease of registration to other material and non-material benefits. Some of these are listed below-
Advantages of Section 8 company:
Access to Tax benefits
Zero Stamp Duty
Separate Legal Identity
Eligible For Foreign Contribution
Minimum Share Capital
Section 8 company registration online
The process of section 8 company registration online can be done very quickly and does not require extensive documentation and complex procedures. Following are the steps that should be followed for section 8 company registration online-
Get registered with a law firm like Lawgical India and then fill the form as per the legal advice is available on the online portal.
Get Direct Identification Number (DIN) and Digital Signature Certificates (DSC) account for mandatory information as the signatures of Directors are of maximum prominence.
Name approval is indispensable for registration and must be accepted by the Ministry of Corporate Affairs.
Apply for a Company License and Certificate Of Insurance (COI) from the Directors of the Ministry of Corporate Affairs
PAN and TAN are imperative for the registration of the company.
The applicant is bound to open a bank account within thirty working days of the company.
The companies registered under section 8 are exempted from the payment of income tax.
Your Section-8 company is now operative.
Document Required for The Registration of Section-8 Company-
Passport-sized photographs of all the members and directors of the company.
ID proof of all the members and directors of the company.
A list comprising details of all the directors and promoters, specifically their names and addresses.
If the company is operating on rented premises, then the application for registration should contain the rental agreement along with the No Objection Certificate (NOC) from the landlord.
Water and electricity bills along with property papers if the property is self-owned.
Eligibility Criterion for the Registration of a Section-8 Company
The primary objective behind registration should be to proselytize social welfare, education, science, commerce, financial assistance, and arts to the lower-income groups.
The income generated by the company is to be utilized for procurement of objectives and for proselytizing the purposes of the section-8 company.
No dividend should be paid to members of the board of directors.
The directors and the promoters should refrain from acquiring or accepting any form of remuneration.
A three-year vision plan has to be designed.
A non-government organization generally referred to as an NGO, is typically a non-profit organization, as the name suggests, and is independent of the government. They remain active in humanitarianism and social sciences. An NGO can be registered as a trust, society, or section-8 company. The registration details have been elucidated above. Now, let's discuss the registration of NGO Trusts and Societies.
The entities registered as a trust under the NGO registration procedure mainly function to eradicate poverty, provide pedagogy, and attendee medical relief. Trust organizations are irrevocable. This means that these associations cannot be terminated or altered unless and until the beneficiary has ratified such activities.
Societies also referred to as member-based unions, serve humane and social welfare motives. These institutions essentially operate under the authority of a governing body or a management commission.
Following are the advantages of NGO registration online that can benefit the person in various ways and open opportunities in multiple fields and businesses.
Advantages of NGO registration online
No minimum capital required
Ease of transferring ownership or title
Tax waiver from tax authorities
Status of autonomous legal identity
Serves long life service National and cross-border collaborations
NGO registration online as Trust
Fill out the NGO registration form online from a law firm like Lawgical India
Gather the prerequisite details.
The firm will compile a trust deed.
Trust deed registration
Your NGO trust is now registered.
NGO registration online as a Society Fill out the online registration form for NGO formation based on the legal advice from a dignified law firm like Lawgical India Compilation of the necessary details shall be done by the firm you've registered with. Prepare the memorandum of association with the required clauses. Set up Rules for the NGO, which shall be mentioned in the application for registration. your NGO society is now registered.
Lawgical India is a highly reliable law firm that provides proficient online legal services like company registration, FSSAI registration, and Section-8 Company registration by rendering competent law expert advice and essential assistance. If you are looking to open a section 8 company and are confused with all the processes and documentation, then Lawgical India is the right place for you. They will help you get everything from registration to final incorporation done on time and with the ease of sitting at home.
So, without having any doubts or second thoughts, choose Lawgical India.