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The Directors and Shareholders of a Section 8 Company acts as Separate Legal Entity meaning, their liabilities in the company are limited to their shareholding.
In a Section 8 NGOs, it is easier to add or remove Directors or Shareholders. The process is quite easier to execute and the cost associated with it is very nominal.
The best thing about incorporating as Section 8 Company or an NGO is that the company cannot distribute its profit or assets to its members thus ensuring the correct utilization of the fund.
Section 8 Companies or NGOs is done with the main objective to promote sports, animal care, research, education, social welfare, religion, charity, etc., which will ultimately help in the upliftment of the socio-economic welfare of the country.
The Central Government has exempted the Section 8 Company/NGO to have any minimum paid-up capital requirement which means, we can start a Section 8 company with nominal amount.
The Central Government has also exempted the Section 8 Company/NGO to pay any stamp duty charges during its incorporation which ultimately reduces the cost of incorporation exponentially.
NGO provides voting rights to the shareholders on the basis of the number of shares held by them. Thus, giving ample opportunity to every member to vote in the important decision-making process.
NGOs in India are cost effective also as there are no stamp duty charges and no minimum capital requirement, as in the case of other companies.
Section-8 NGO has a Perpetual License, i.e. it has uninterrupted existence until it is legally dissolved. It can continue to work even after the death or departure of any of its members.
Below is the list of documents required for NGO Registration Online, below is the list of documents that are required for its incorporation:
Our systems will check availability of your NGO Name
1st, apply for DSCs of all the Directors & members. Digital Signatures are required for signing all the documents while incorporating your Section 8 company.
After successful allotment of directors' DSCs, the next step is the application of DIN (Director Identification Number). It is the unique number allotted by the MCA to each of the directors of the Section 8 Company.
Meanwhile applying for your DSCs, we help you in selecting Unique Name for your dream Section 8 Company. This process completes in a single day.
On the 2nd day, after the approval of the Company’s name, prepare all the e-forms and other documents. Drafting of MOA & AOA comes under this step.
After completing all the formalities and documentation work, upload e-forms along with the attachments prepared in step-4 on the MCA portal for approval.
After obtaining approval from MCA, it will allot COI, PAN & TAN.
A minimum of 2 members or directors are required for a Section 8 NGO registration online in India. It is important to note that members of a same family (blood relation) are eligible for the incorporation.
No, Section 8 Company/NGO Registration is a fully online process as all the documents and e-forms are to be filed electronically on MCA Portal. You just need to send us the scanned e-copies of all the required documents & forms. Hence, your physical presence is not required under any circumstances.
The DSC is just like your ordinary signature having extra security features like encryption, etc. It enables you to sign the documents like PDF electronically.
MOA & AOA contains all the rules, vision and mission of your Section 8 company, and defines the exact roles and responsibilities of shareholders and directors.
There is no minimum paid-up capital requirements for the Incorporation of Section 8 Company or for NGO registration online. This means you can start a Section 8 Company/NGO with a nominal amount.
It is mandatory for the Section 8 Company to include the words foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust and the like etc.
As in the case of other companies, no stamp duty is payable on the transfer of shares, the same is applicable for Section 8 Company or NGO also.
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