Section 8 company Registration

What is Section 8 Company Registration in India?

An NGO can be registered as a Section 8 company under the Companies Act 2013 or as a trust under the Trust Act 1882 or as a society under the Societies Act 1860.Section 8 Company Registration is the process of incorporation of an NGO under the Companies Act 2013.

A section 8 Company can be registered for promoting Art, Science, Commerce, Technology, Sports, Education, Social Research, Social Welfare, Religion, Charity and Protection of Environment etc. A Section 8 Company can work anywhere in India after succesful completion of the registration process.

Section 8 Company Registration Fee in India

The Registration fees for Section 8 company registration is as follows

• DSC & DIN – 3000
• Company Name Reservation – 1000
• MoA& AoA & Government Fees & Incorporation fees - Rs 6000-8000*
• Notary and Stamps – 2000
• Professional Fees- 8000-10000

Requirement and Compliances Under Section- 8 Company Registration in India

• Minimum Requirement

  A Section 8 Company is a company to be incorporated by the Ministry of Corporate Affairs. Minimum two directors and two members are required to incorporate it.

  No minimum share capital is required for section 8 company registration.

• Charitable object

  Section 8 companies are required to be incorporated with non-profit objectives. Any profit earned through a section 8 company will not be distributed among its members.

  It will either be reinvested in the business or utilized with an objective of furtherance of its main objects, i.e. charitable purpose.

• Management Team

  Unlike other Trusts which are managed by the Trustees as per a Trust Deed, section 8 Companies are governed by the Board of the Director as per the MoA and AoA of the Section 8 Company.

• Regulated Under Companies Act, 2013

  Section 8 company also needs to follow the rules and regulation that are prescribed under the Companies Act, 2013. Maintaining Book of accounts, filing of returns as and when required.

• Income tax

  A company has to follow the provisions of Income Tax Act.

• GST Registration

  Every person or company who is indulged into providing goods and services whose aggregate turnover crosses Rs.40 lakhs in a year requires GST Registration.

Annual Compliances for Section 8 companies as per the Companies Act 2013

The annual compliances of section 8 company are just like the other companies.

• Conduction of minimum of two board meetings in a year.
• Maintenance of Books of Accounts
• Preparation of Financial Statements
• Mandatory Audit
• Income tax return filing
• Filing of financial statements in form AOC 4
• An annual return is to be filed every year with other e- filing forms like MGT 7.
• Additional compliances to fulfil the registration like 12AA, 80G etc.

Documents Required for Section 8 Company Registration in India

There are certain advantages of registering an NGO or NPO under Section 8 of Companies Act 2013. Some of them are as follows: