You should know that an NGO can get registered as a Section 8 company under the realm of Companies Act 2013 or even as a trust under the Trust Act 1882 or even as a society under the Societies Act 1860.Section 8 Company Registration is the overall procedure of combination of an NGO under the Companies Act 2013.
Indeed, you can do it yourself or you can talk to professionals for your company registered under section 8. After all, it is all about how you want to go about things. Anyhow, you know a section 8 Company can be actually registered for endorsing Art, Commerce, Science, Technology, Sports, Education, any Social Research, Religion, Social Welfare, Charity and Protection of Environment and more. A Section 8 Company is the one that can easily operate anywhere in India after its successful completion of the registration procedure.
The Documents Needed for Section 8 Company Registration
Well, below are the documents that are required for Section 8 Company registration:
- Most recent or Latest Bank Statement
- PAN Card of the Shareholders and Directors
- Aadhaar Card
- Telephone Bill or even Electricity Bill
- Copy of the Rental agreement, if the property is on rent for the specific registered office
- Voter ID, Passport or Driving license
- Passport size photograph of all the shareholders and directors
Advantages of Section 8 Company Registration you should know
There are certain types of advantages of registering an NGO or that of NPO under Section 8 of Companies Act 2013. And a few of these are given below:
- No Stamp Duty: No stamp duty is simply imposed on the incorporation of Section 8 Company in the country as it is against the provision of the overall payment of stamp duty on the moa and aoa of the private limited company.
- No least capital: There is no minimum type of capital requirement for a Section 8 Company Registration in the country.
- Tax Benefits: There are manifold tax benefits under the Section 8 Company Registration in the country.
- Separate Legal Identity: Section 8 Company registration has a separate type of legal entity. It obtains a distinct legal identity from its overall members.
- Credibility: Section 8 Company has more sort of credibility than any other type of a charitable organisation. You know it is under the stringent provision of the Companies Act that actually requires a mandatory audit every single year.
- Exemption to the donators: Under the realm of Section 80G, the exemption is granted to that of the donators in case the section 8 company is registered under the domain of section 80G.
A few of the Eligibility Criteria
- An Individual or HUF or limited Company can go for it.
- Two or more person acting as a shareholder or Director of the company must fulfil all the requirements and compliances of this registration.
- At least one single of the directors in the company has to be Indian resident
- The goal should be the promotion of social welfare, sports, the advancement of science and art, education and financial assistance to hat of lower income groups.
- The extra generated should be used only meeting the main objective of the section 8 company only.
So, since you have a good idea about sec 8 company registration, make sure that you go for it if you are eligible.