INCORPORATION OF SECTION 8(NGO) COMPANY
Introduction
Welcome to the world of Section 8 Companies, where passion meets purpose, and impact knows no bounds. Section 8 Companies, as per the Companies Act, 2013, are entities formed for promoting charitable purposes, including education, healthcare, environmental sustainability, and more. They're not driven by profits but by a burning desire to make a difference in society. If you're looking to channel your efforts towards meaningful social impact, a Section 8 Company could be your perfect platform.
Why Should You Choose a Section 8 Company?
Social Mission
Section 8 Companies are architected with a singular mandate—to uplift society. If your soul resonates with the notion of tangibly enriching lives, this organizational structure seamlessly mirrors your aspirations.
Tax Exemptions
Unlock the power of tax benefits to magnify your influence. Section 8 Companies enjoy an array of exemptions, liberating resources to fuel your philanthropic pursuits more robustly.
Credibility
Earn the trust and respect of your community. As a registered Section 8 Company, you signal to stakeholders that your compass points unwaveringly toward noble intentions, centered solely on advancing the common good.
Perpetual Succession
Cement your legacy for posterity. Unlike conventional enterprises, Section 8 Companies endure across epochs, ensuring that your legacy of impact transcends time and transitions.
Mandatory Requirements
- At least Two(2) members (Private Limited NGO) and at least Seven (7) members (Public Limited NGO) , either individuals or body corporates.
- At least Two(2) directors (Private Limited NGO) and at least Three (3) directors (Public Limited NGO) and one of them must live in India.
- Every director and subscribers of members shall have a Digital Signature Certificate (DSC).
PROCEDURE FOR INCORPORATION OF SECTION 8 COMPANY
1. Obtain DSC of Subscribers
The first step is to obtain the Digital Signature Certificate of the proposed Director(s) and subscribers of the Section 8 Company. The reason for this is that all the forms need to be submitted online and require the directors and subscribers of Memorandum of the Section 8 Company. Following information/documents are needed for application of DSC:
i. Aadhaar Card
ii. PAN Card
iii. Photograph
iv. Email address
v. Mobile Number
2. Application for Name Approval
The next step while incorporating public company is to decide on the name of the Company. The name of the Company will be in the form of “ABC Foundation/forum”.
The name can be approved in the Form SPICe+ 32 application. Only one preferred name along with the significance of keeping that name can be given in the Form SPICe+ 32 application. If the name gets rejected, another name can be submitted by applying another Form SPICe+ 32 application.
Once the name is approved by the MCA we move on to the next step.
3. Preparation of MOA & AOA and Other Documents
We have to prepare the following documents which are required to be submitted to the ROC:
The Memorandum of Association (MOA) which are the objects to be followed by the Company or stating the business for which the company is going to be incorporated.
The Articles of the Association (AoA) lays down the by-laws on which the company will operate.
Proof of the proposed company's registered office as well as proof of ownership and NOC from the owner.
A declaration by the professional certifying that all compliances have been made.
4. Filing of Forms With MCA
All documents will be attached to the SPICe Form, MOA and AOA along with the DSC of the Director and the professional will be uploaded to the MCA site for approval. The Pan Number and TAN is generated automatically at the time of incorporation of the Company. There is no need to file separate applications for obtaining PAN Number and TAN.
5. Issue of the Certificate of Incorporation, PAN, TAN, ESI & EPF Registration
On verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation and simultaneously PAN, TAN, ESI and EPF registration will be done for the Company.
Documents Required for Section 8 Company Registration
- Identity Proof such as Aadhaar Card, Driving License, Voter ID of all the directors and shareholders.
- Address Proof of all the proposed directors and shareholder of the company such as Electricity Bill/ Telephone Bill / Bank Account Statement.
- PAN card details of all the directors and shareholders
- Utility bill such as telephone, gas, water or electricity bill and rent agreement of the registered office as a residential proof of the business place. It should not be older than 2 months.
- An NOC or No Objection Certificate from the landlord of the business place.
- Digital Signature Certificate of the directors.
- Email ID and Mobile no. of directors and shareholders of the company.
- Passport size photograph of the directors and shareholders.
Note: In case of NRI or Foreign National, documents of Subscribers of Memorandum and Directors must be notarized or apostilled.