As the name suggests, NGO, i.e. Non-Government Organisation, is a group of enthusiastic individuals who work cohesively toward society’s betterment. In this article, you will learn how about NGO registration under Section 8 in detail. In our country, NGOs are registrable under the following laws
- Trust under Indian Trusts Act, 1882
- Section 8 Company under Companies Act, 2013
- Society under Societies Registration Act 1860
What is the Primary Objective or Goal of the NGO – Section 8 Company?
The primary objective of setting up a firm under Section 8 is to embrace non-profit goals such as;
- Environment protection
Unlike private or other company forms where profit are divided among the shareholder, NGO excels on entirely an opposite concept. Since these companies are not profit-centric, the income generated is usually allocated to promote the company’s objective.
It’s worth noting that at least two directors are required to incorporate section 8 company as a privately held entity. Similarly, a mini of 3 directors is required for the incorporation as a public limited company.
Further, the max numbers of members in a privately held entity is 200, whereas no limit is applicable for a public limited company in this regard. A Section 8 company is not mandated to procure mini—Paid-up capital of any amount.
Read our article:How to approach NGO Registration in India? Forms & Features
Pre-Requisite for NGO Registration under Section 8
Obtain DSC (Digital Signature): Digital signatures are also known as an electronic signature that allows a person to sign the document in a digital way. It is the most secure way of authenticating the document online. Also, it is an absolute necessity for the applicant who seeks NGO registration under Section 8 Company.
To avail of a DSC signature, one has to visit MCA-certified agencies along with the requested documents. At present, there are ten agencies in India (mentioned below) that are eligible to grant the DSC to the applicant.
- National informatics centre (NIC)
- Code Solutions
- SafeScrypt CA Services
- IDRBT Certifying Authority
Make sure to obtain Class 2 or a Class 3 category of DSC for the registration process. Under the Class, the person identification is done against the pre-verified database. Meanwhile, in the case of the Class 3 category, an individual needs to visit the concerned authority to prove his/her identity.
Now let’s move on to the next section, i.e. Steps for NGO registration under Section 8 Company.
Steps Needed to Follow for NGO Registration under Section 8 Company
Carefully follow the underneath steps for seamless NGO registration under Section 8 Company. All these steps should be performed on the MCA’s official portal.
Step 1: Name Reservation via SPICE+
The procedure regarding name reservation of Section 8 Company is the same as other companies. For the same, visit MCA’s online portal and then click on the ‘SPICe+’ Form under ‘MCA Services’. The MCA introduced the SPICe+ for the simplification of the incorporation process.
This form is divided into two sections, viz Part A and Part B. Part A deals with the name reservation. In contrast, Part B provide hosts of other services, such as issuance of ESIC, GSTIN, incorporation certificate, etc.
While filing up Part A, the applicant has to opt for one of the following names for name reservation.
- Council, and the like, etc.
Step-2-Filing SPICE+ Part B
Upon submitting the Part A form, go ahead and download the Part B form to fill various linked form such as
- INC-9 and URC-1) & for affixing the “DSC,”
Step-3-Preparing MOA & AOA
After the proper filing of the form above, an applicant must file AOA & MOA from the Dashboard Link. Fortunately, here you do not have to refill the entire detail again as these forms support auto-fill features.
Make sure to fill complete information in MOA/ AOA as per the Schedule I requirements. Do not forget to affix the DSC of all the concerned members on the portal for the same.
Step 4: Filing Details in the web form, viz AGILE PRO
In this step, you were required to fill up the AGILE PRO form. Again, the auto-fill feature will save a lot of time for you. AGILE PRO includes-
- Bank Account- Opening the bank account through this form.
- EPFO/ ESIC- Mandatory
Step 5: Fill Details in INC-9
INC-9 includes the declaration by the First director or subscriber.
Step 6: Filing Of Forms with MCA
Soon after filling all the requisite details in SPICE+ & AGILE PRO, the applicant must file the said forms with MCA. Post-submission of these forms, the document can be uploaded, and DSC can be affixed to the place where it belongs.
Step-7-Pre-Scrutiny Check & Fee Submission
In the pre-scrutiny check, the portal will give you a chance to recheck the entire detail to pinpoint any error. The applicant can hit the confirmation button once they become sure that every detail mentioned in the form is legit. After this, the portal will open the payment window for the applicant for submitting fees for NGO registration under Section 8 companies.
Step-8-COI from the Registrar
If the Registrar couldn’t find any disparity in the submitted documents, he shall grant the Certificate of Incorporation to the applicant company.
Registering under Section 8 will provide ample benefits to the NGOs, such as Tax exemptions, No minimum capital requirement, and Separate Legal entity, etc. An idea of getting registered under Section 8 company can helps NGOs to grow even further. Connect with CorpBiz in case you need some expert guidance on NGO registration under the Section company.
Read our article:An Outlook: Registering an NGO in India