Starting a non-profit organization in India? Section 8 company registration offers a great way to establish a charitable or social welfare company. Section 8 companies operate under the Companies Act, 2013 and are known for promoting social causes. Komal Ahuja, a tax consultant with NGO Experts, specializes in helping organizations navigate the legal processes like Section 8 company registration, 12A and 80G registration, and trademark registration. Here’s a simple guide on section 8 company registration online.
What is a Section 8 Company?
A Section 8 company is formed for non-profit purposes such as charitable, educational, religious, or environmental causes. These companies use their income or profits to promote their objectives and cannot distribute dividends to members. Unlike trusts or societies, Section 8 companies enjoy higher credibility due to strict regulatory compliance.
Benefits of Registering a Section 8 Company
Before we dive into the registration process, let’s look at the key benefits:
- Legal identity and structure
- Tax exemptions under 12A and 80G registration
- Greater credibility with donors and government agencies
- No minimum share capital requirement
- Exemption from paying trademark registration fees for NGO-related trademarks
Step-by-Step Guide to Section 8 Company Registration Online
Step 1: Obtain Digital Signatures (DSC)
The registration process begins with obtaining Digital Signature Certificates (DSC) for the proposed directors of the company. The DSC is needed for signing electronic forms. You can apply for a DSC through government-authorized agencies.
Step 2: Director Identification Number (DIN)
After obtaining the DSC, apply for the Director Identification Number (DIN) for each director. The DIN is issued by the Ministry of Corporate Affairs (MCA) and can be applied for online through the SPICe+ form.
Step 3: Name Reservation
Choose a unique name for your Section 8 company. The name should not resemble any existing company or trademark. Submit your name reservation request through the RUN (Reserve Unique Name) service on the MCA portal. The approval typically takes 1-2 days.
Step 4: Drafting of Memorandum of Association (MOA) and Articles of Association (AOA)
The next step is drafting the Memorandum of Association (MOA) and Articles of Association (AOA) for the company. These documents define the objectives and rules governing the company. Ensure the MOA clearly mentions the non-profit objectives.
Step 5: Filing SPICe+ Form
The SPICe+ (Simplified Proforma for Incorporating a Company Electronically) is the key form for section 8 company registration online. This integrated form allows you to apply for company incorporation, DIN, and PAN in one go. Submit the required details, along with the MOA, AOA, and necessary documents.
Step 6: Issuance of License
Once the application is submitted, the Registrar of Companies (RoC) reviews the documents. Upon approval, you will receive a Section 8 company license.
Step 7: Certificate of Incorporation
After obtaining the license, the RoC issues the Certificate of Incorporation. Your Section 8 company is now officially registered.
12A and 80G Registration
After completing Section 8 company registration, apply for 12A and 80G registration to avail tax exemptions. 12A registration allows the company to be exempt from income tax, while 80G registration offers tax benefits to donors. This is crucial for increasing donations and maximizing your impact.
Trademark Registration Fees for Section 8 Companies
Although Section 8 companies are non-profit, many still seek trademark protection for their name and logo. This helps in brand recognition and legal protection. The trademark registration fees for NGOs are significantly reduced compared to commercial entities, making it affordable for social organizations.
Why Seek Professional Help?
While the steps seem simple, each form and document requires careful attention to detail. A single error can delay the entire process. Komal Ahuja at NGO Experts ensures that your section 8 company registration online is completed smoothly. From drafting MOA and AOA to applying for 12A and 80G registration, Komal handles the complexities with ease.
Conclusion
Setting up a Section 8 company online is a straightforward process when you have the right guidance. Follow the steps carefully to avoid any roadblocks. For a hassle-free experience, seek expert advice from Komal Ahuja at NGO Experts, especially if you’re planning to apply for 12A and 80G registration or trademark protection.
