Registration of NGO
When someone thinks to form NGO or Society or Trust or Section 8 Company, there come in mind various doubts, which are better, how to form, what are the minimum Requirements, documents required, etc. Comparing the business structure requires a analytical thinking after understanding the factors and purpose of formation. However each business structure for formation of NGO has their own pros and cons.
Let’s understand to form Section 8 Company as per Companies Act 2013. I hope this will help you understand the concept in deep.
Meaning of Section 8 Company:
A Company which has main objective as Promotion of arts, science, commerce, sports, education, religion, charity or such other objectives, uses its profit for promotion of its objectives and doesn’t pay any dividend to its members. In simple words it is a Company with no intention to make a profit.
Who can form a Section 8 Company?
Any individual or association of persons can form a Section 8 Company and if they intend to
- has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;
- intends to apply its profits, if any, or other income in promoting its objects; and
- intends to prohibit the payment of any dividend to its members,
How many people/ persons are required to form section 8 Company?
Minimum 2 people are required to set up a Section 8 company.
How to Register a Section 8 Company?
To register a section 8 company in India, the process is similar to the registration of other companies (Private Limited/ Public Limited) in Simplified Proforma for Incorporating company electronically.
Procedure to register Section 8 Company:
- Obtain Digital Signature: It is compulsorily required to Obtain a Digital Signature Certificate from authorized DSC issuing Company.
- PAN Card copy duly attested by Banker/ Gazetted Officer
- Address Proof duly attested by Banker/ Gazetted Officer
- Signed DSC Form affixed photo on it
- Obtain Director Identification Number and file necessary incorporation documents with CRC: every individual intending to be appointed as director of a company shall make an application for allotment of Director Identification Number alongwith the other incorporation documents.
- Self attested PAN for each subscriber to MOA
- Self attested Address Proof for each subscriber to MOA
- Passport Size colored photograph for each subscriber to MOA
- The draft Memorandum of Association of the proposed company.
- The draft Articles of Association of the proposed company.
- The declaration by an Advocate, a Chartered Accountant, Cost Accountant or Company Secretary in practice
- The declaration by each of the persons making the application
- An estimate of the future annual income and expenditure of the company for next three years, specifying the sources of the income and the objects of the expenditure