Registering a Section 8 company is a crucial step for any non-profit organization aiming to work for charitable purposes in India. A Section 8 company, under the Companies Act, 2013, is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or similar objectives. This guide will take you through the process to register your NGO and obtain the Section 8 company registration certificate.
Step 1: Understand the Requirements
Before beginning the process to register NGO, ensure that you meet the eligibility criteria. A Section 8 company must have the following:
A minimum of two members and two directors.
No profit distribution among its members.
A focus on charitable objectives like education, health, poverty alleviation, etc.
A clear mission of social welfare.
Step 2: Choose a Name for Your Section 8 Company
Choosing a name for your Section 8 company is the first step. The name must reflect the non-profit nature of the organization. It cannot include words like “Limited” or “Private Limited,” as Section 8 companies do not distribute profits. Check the availability of the name by using the MCA (Ministry of Corporate Affairs) portal.
Step 3: Apply for a Digital Signature Certificate (DSC)
To complete the registration process, you need a Digital Signature Certificate (DSC) for signing electronic documents. This is a mandatory requirement for registering your Section 8 company online. Obtain the DSC from a certifying agency authorized by the government.
Step 4: Obtain Director Identification Number (DIN)
Each director of your Section 8 company must have a Director Identification Number (DIN). The DIN can be obtained by submitting an online application on the Ministry of Corporate Affairs portal. Ensure your directors are not disqualified from holding a position by checking their credentials before proceeding.
Step 5: File the Section 8 Company Application
Now it’s time to submit your application. Prepare the following documents for submission:
Memorandum of Association (MOA) and Articles of Association (AOA), outlining the purpose of your non-profit company.
Proof of address for the company’s registered office.
Identity proof and address proof for all directors.
A no-objection certificate from the property owner if the office is on a rented property.
The application form for a Section 8 company registration certificate is filed through the SPICe+ (Simplified Proforma for Incorporating Company electronically) form available on the MCA portal.
Step 6: DARPAN Registration
Before completing the Section 8 company registration, you need to complete DARPAN registration. DARPAN (Development Assistance for Rural Projects and NGOs) is a government portal designed to simplify the process for NGOs. It ensures that the details of your NGO are registered with the government, making it easier for you to access funding and support.
Step 7: Submit the Documents and Wait for Approval
After submitting your application on the MCA portal, the Registrar of Companies (ROC) will review the documents. The process can take a few weeks, and once approved, you will receive your Section 8 company registration certificate. This certificate is proof that your non-profit organization is now officially registered and recognized by the government.
Step 8: Apply for Tax Exemptions
After receiving the Section 8 company registration certificate, apply for tax exemptions under sections like 12A and 80G if your organization is eligible. These exemptions will help you in raising funds and ensuring that your donations are tax-deductible.
Final Thoughts
The process to register NGO as a Section 8 company might seem complicated, but with the right guidance, it can be done smoothly. By following the above steps, you can ensure that your organization complies with all the legal requirements and is officially registered to carry out charitable activities. If you need assistance in any step of this process, consider consulting with NGO experts, who specialize in NGO registration and legal compliance.
