Section 8 Company (NGO)
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013 in India. It is also known as a not-for-profit company, and its primary objective is to promote commerce, art, science, religion, charity, or any other useful object.
Eligibility
A minimum of 2 directors and a maximum of 200 directors.
The company must have an objective that is for the promotion of commerce, art, science, religion, charity, or any other useful object.
Document Required
Memorandum of Association (MOA)
ID and address proof of the proposed trustees
Proof of registered office
PAN card of the NGO
Copy of the trust deed
Certificate of incorporation
Statement of accounts
Benefits
NGO can enter into contracts, receive donations, and engage in other transactions on its own behalf
Tax exemptions
Increased credibility with Donors
limited liability protection to its members
Challenges for Registering for Section 8 Companies
Registering a Section 8 Companies in India involves compliance with specific regulations. Here are ten common challenges faced by individuals during the registration process:
1.Understanding Section 8 Structure:
Grasping the unique structure of a Section 8 Company, which is formed for promoting charitable objectives, including those related to education, art, science, religion, charity, or any other useful purpose.
2.Mission Clarity and Objectives:
Clearly defining the charitable objectives and mission of the NGO to align with the criteria specified under Section 8 of the Companies Act.
3.Documentation Complexity:
Preparing comprehensive documentation, including the memorandum of association, articles of association, and other legal papers, and ensuring compliance with regulatory requirements.
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FAQ
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013 in India. It is also known as a not-for-profit company, and its primary objective is to promote commerce, art, science, religion, charity, or any other useful object.
The eligibility criteria for registering a Section 8 Company include a minimum of 2 directors and a maximum of 200 directors. The company must have an objective that is for the promotion of commerce, art, science, religion, charity, or any other useful object.
The process for registering a Section 8 Company in India involves obtaining the Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the directors, filing the Incorporation Form, and obtaining the Certificate of Incorporation.
There is no minimum paid-up capital required for registering a Section 8 Company in India.
The compliances required for a Section 8 Company in India include filing of Annual Returns, preparation of financial statements, conducting of annual general meetings, and appointment of auditors.
Yes, a Section 8 Company can raise funds from the public in India, but only for its specific objectives.
The restrictions for a Section 8 Company in India include restrictions on the distribution of profits, restrictions on political activities, and restrictions on the transfer of shares.
The procedure for changing the objective of a Section 8 Company in India involves obtaining the consent of the members, filing the necessary forms with the Registrar of Companies, and obtaining the approval of the Ministry of Corporate Affairs.
The procedure for winding up a Section 8 Company in India involves passing a special resolution, filing the necessary forms with the Registrar of Companies, and obtaining the approval of the Ministry of Corporate Affairs.
The role of the Registrar of Companies in the registration of a Section 8 Company in India is to approve the incorporation of the company, maintain the records of the company, and enforce the compliance of the companies with the provisions of the Companies Act, 2013.
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