Looking forward for Section 8 company Registration?
You are at the right place. We understand that you wish to register Section 8 Company for charitable purpose and still wondering about the legal compliance and cost associated, right?
In this article, we will try to cover every aspect of Section 8 Company Registration Cost and other important aspects of Section 8.
KEY TAKEAWAYS OF THIS ARTICLE ON SECTION 8 COMPANY:
- Types of NGOs (Non-Government Organizations)
- Historical Background of company with charitable purposes
- Section 8 company under Companies Act, 2013
- Documents required for Section 8 Company Registration
- Forms for Section 8 Company Registration
- Step wise Procedure for Section 8 Company Registration
- Fees to be for Section 8 Company Registration
- FAQs on Section 8 Company Registration
Types of NGOs (Non-Government Organizations)
In India there are mainly three forms of entities in which NGOs can be registered:
- Section 8 Company Registration
- Society registration under Section 20 of Societies Registration Act, 1860
- Trust formed under Indian Trust Act, 1882
Historical background of Company with Charitable purposes
The concept of Company with charitable purposes was introduced under Companies Act, 1913 that allowed companies with charitable means to register itself without adding the words Limited or Private Limited after its name.
Later with the introduction of Companies Act, 1956 on the recommendation of Bhabha Committee, these companies were covered under section 25 of the said Act and therefore widely known as Section 25 companies.
SECTION 8 COMPANY REGISTRATION UNDER THE COMPANIES ACT, 2013
The Companies Act, 2013 continues with the provisions of these types of companies and provide the framework for the same under Section 8. Since the license to work for charitable purpose comes under Section 8 of the Companies Act, 2013 and hence, they are known as Section 8 Companies.
Section 8 companies are regulated by Ministry of corporate Affairs (MCA) with its wings including as Registrar of Companies (RoC) and Regional Directors.
Let us know more: What is Section 8 Company?
In general sense, Section 8 Company refers to corporate form of NGO, which is setup for objects related to betterment of society, promotion of religion, charity, protection of environment etc.
As per Section 8 of Companies Act, 2013
- A Company which is registered under Section 8 of Companies, Act 2013 for the purpose of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other objects;
- Which do not intend to utilise its Profit to any purpose then the promotion of its objects; and
- Prohibits payment of dividend to its MOA.
DOCUMENTS REQUIRED FOR SECTION 8 COMPANY REGISTRATION
| Category | Documents Required |
| Subscribers and First Directors | · Identity proof (self-attested copy of PAN card)
· Permanent address proof (self- attested copy of voter ID/ Passport/driving license) · Present address proof (utility bill/ bank statement, should not be older than 2 months) |
| Registered office address proof | Rent agreement/ NOC from landlord and utility bill (should not be older than 2 months) |
| Share capital | Details about Authorised and paid-up share capital (Not applicable for Guarantee company without share capital) |
| Business Activity | Correct and full description of business activity including NIC Code. |
| If any subscriber is body corporate | Certificate of Incorporation (COI) of such Body Corporate |
MCA FORMS FOR SECTION 8 COMPANY REGISTRATION
| Purpose | Form |
| Name reservation | SPICe PART A |
| Application for incorporation | SPICe PART-B |
| Application for GSTIN, ESIC registration, EPFO registration, Shops and Establishment registration, Professional Tax registration, opening of bank account | AGILE-PRO-S |
| MOA and AOA | SPICe MOA, SPICe AOA are not applicable to Section 8 company registration, MOA and AOA are to be submitted in the form of scanned copy of printed and signed INC-13 and INC-14 respectively as attachments to SPICe part-B |
| Self-Declaration by First Directors and Subscribers | Form INC-9 |
STEP-WISE PROCEDURE FOR SECTION 8 COMPANY REGISTRATION
| Step-1 | Apply for DSCs of Subscribers to MOA and First Directors |
| Step-2 | Apply for DIN of First Directors (DIN up to 3 directors may be applied in integrated incorporation form (form SPICe Plus) |
| Step-3 | Checking name availability on MCA portal and Trademark Public Search |
| Step-4 | Apply for name in Name Reservation (form SPICe Part A) |
| Step-5 | Once name approval letter is received name stands reserved for initially 20 days which may be further extended up to 40 days (max name reservation period can be 60 days) on filing extension application and payment of additional fees. |
| Step-6 | Apply for Incorporation of company in SPICe Part-B along with all other forms (AGILE-PRO-S, INC-9) and all attachments |
| Step-7 | Once incorporation application is approved by ROC, he will issue Certificate of Incorporation (COI) under his hand. Along with this, PAN and TAN are also issued by the Income Tax Dept. |
COST/ FEES TO BE FOR SECTION 8 COMPANY REGISTRATION
| Purpose | Fees |
| DSCs of Directors and Subscribers | Rs.1000- 2000 (but again at the discretion of DSC agency |
| Name Reservation | Rs. 1000.00
(Note: if extension application is to be filed additional fees of Rs.1000 is to be paid) |
| PAN/TAN allotment | Rs. 65.00 and Rs.66 (total Rs.101.00) |
| For MOA/AOA/incorporation application | 0.00 |
| Payment of Stamp Duty | Depends on the State where registered office of the company is situated |
| Professional fees for certification | Decided at the discretion of Professional |
FAQs ON SECTION 8 COMPANY REGISTRATION
- Who can apply for Section 8 Company Registration?
Ans: Any person who is desirous to register a limited liability company and has following attributes can incorporate a Section 8 Company:
- Formed for the purpose of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other objects;
- Which do not intend to utilise its Profit to any purpose then the promotion of its objects; and
- Prohibits payment of dividend to its MOA.
- Who is authorized to issue license to Section 8 company?
Ans: Central Government has delegated its powers to respective Registrar of Companies of the state where registered office of the company is situated to issue license to Section 8 company.
- Can a Section 8 company be registered as unlimited liability company?
Ans: No, as per Rule 20(1) of Companies (Incorporation) rules 2014 specifically mentioned that only as limited liability company is authorized to register as a Section 8 Company.
We hope that you liked this article, still if you have any questions or suggestions for us, or if you yourself is looking for an opportunity for Section 8 Company Registration in India then please contact to our expert team at Compliance Calendar LLP at info@ccoffice.in or 9988424211.
