Advantages of Section 8 Company/NGO Registration Online
Let us first understand What is a Section 8 company/NGO registration Online before looking at its advantages:
What is a Section 8 Company or NGO?
The legal entities that are started with the objective of helping society are commonly referred to as Section- 8 Company. It can have an objective like promoting social welfare, education, charity, art, science, religion or any such activity that is essential for the welfare of the society.
It can also be called a Non- Profit Organisation (NPO). As the name, Non-Profit Organisation (NPO) suggests, these companies are registered for charitable and non-profit purposes only.
Generally, there are three types of companies, which are Private Limited, LLP, and Public Limited. These companies have different types of legal requirements & implications. But, a private limited company or a public limited company can also be named as a Section- 8 company if, they are working towards the welfare of the society at large without an intention of getting any kind of dividend or profit.
Please note that a One-Person Company cannot be a Section- 8 Company.
The crux of Section 8 NGO Registration:
- A Section 8 Company is incorporated for the advancement of commerce, art, science, education, research, sports, charity, social welfare, religion, protection of environment or animals, or any such other objective.
- Section 8 Company is a not-for-profit company which means, it intends to apply all of its profits, income, or other earnings, in promoting the above-mentioned objectives.
- No member of the company gets a salary, dividend, or other such leverages under a Section 8 company.
- A Section 8 Company Registration has the authority to work anywhere in India.
Advantages of Section 8 Company Registration:
Section 8 Company/NGO Registration Online has its own perks and advantages. Some of them are listed below:
1) Tax Exemption
Section 8 Companies provides Numerous Tax exemptions, specifically to the donors who are contributing to it. The donors can claim the Tax exemption against the donation they made to a Section 8 company/NGO as that donation is used for the welfare of society.
2) No minimum capital requirement
For a section 8 company, there is no prescribed limit for the minimum capital requirement which is present for other entities such as public limited. However, the capital structure can be altered at any stage as per the growth requirements of the company. In simpler terms, we can safely say that Section 8 Company/NGO registration online can be formed without any share capital. Thus, the funds that are necessary for carrying out business operations can be brought later in any form such as donations and/or subscriptions from members of the company or from the general public as well.
3) Minimum payable Stamp Duty
A Section 8 Company is exempted from the payment of stamp duty on MoA and AoA. However, stamp duty is applicable while registering with a private limited or a public limited company.
4) Separate Legal entity
A Section 8 Company/NGO holds its unique identity, like other companies’ structures. The legal standing of a Section 8 Company is different from its members. A Section 8 Company/NGO has a perpetual existence along with having organized operations and greater flexibility.
In terms of Credibility or reliability, a Section 8 Company stand above as compared to any other Non-profit organization (NPO) structure be it a Trust or Society. It is directly licensed and governed by the central government, thus giving it more rigid regulations. A company registered as a Section 8 Company can change MOA and AOA at any stage or situation with the prior approval of the Central Government.
The above-mentioned features make a Section 8 company more trustworthy as compared to other NPO’s.
6) Title required
Another advantage of a Section 8 Company/NGO Registration Online is that it does require a suffix to its name such as Foundation, Federation, Forum, Organisation, Memorial, etc, just like any other Private Limited (Pvt. Ltd.) or Public Limited (Ltd.).
A simple but unique name symbolizing the work of your Section 8 Company is sufficient in itself to get it registered.
7) Companies Auditor’s Report Order (CARO):
There is no requirement for a Section 8 Company to apply for Companies Auditor’s Report Order or CARO.
A registered partnership firm can become a member of a Section 8 Company in its individual capacity and can obtain the Directorship.
Why Vakilgiri for your Section 8 NGO registration?
Vakilgiri is one of India’s Best Legal Service providers who has helped 1000+ entrepreneurs and enthusiasts to work towards fulfilling their dream of making this world a better place for the last 5 years.
We are a team of dedicated Legal Advisors & Web Developers who provide a one-stop solution for the same. We understand the importance of hard-earned money, thus provides various company registration services at a nominal price ensuring that you don’t have to worry about the initial hefty investments for registering your company/business.
Reach out to us at Vakilgiri.com to know more about us and understand how we take things forward.
Register your Section 8 Company/NGO at the lowest prices with Vakilgiri.
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