An institution or group of people voluntarily joins together for a purpose that is not governed by the government, it is referred to as a Non-Governmental Organization (NGO). In the Companies Act, 2013 an NGO is legally registered as a Section 8 organization and is overseen by the Ministry of Corporate Affairs (MCA).
The proposed name for the Section 8 company must be a proper name. Section 8 company must include the word “FORUM” i.e. Foundation, Forum, Association, Federation, Chambers, etc. The objectives of an organization could include the development of commerce, art and science, education, research, and other areas covered through the Act. This article focuses specifically on the Section 8 company registration process.
What are the steps to follow when you go through what steps are involved in the SECTION 8 Company Registration online procedure?
The Section 8 company registration online procedure has been made simpler under the Companies Act, 2013.
Section 8 registration for companies forms comprise:
SPICe+ Form,
Formula No. INC – 13,
Formula not available. INC-14,
Formula is not required. INC-15,
Formulary not available. INC-9,
Form number. INC 12. (not required to file anymore).
The registration process includes:
1. Obtain Digital Signature Certificate (DSC)
File both Part A and B of the online form Spice+ with the Registrar of Companies (RoC) for obtaining the license for Section 8 company along with all the necessary documents/attachments. (Form INC-14, Inc-15 INC-9 MOA, AOA, and other documents that are required)
2. The need to file Form no. INC-12, to obtain authorization for a Section 8 company was replaced with companies ( Incorporation) Amendment Rules, 2020, starting on February 15th 2020. The license to use Section 8 shall be issued by way of a form called SPICe+.
3. It is the Section 8 fees for registration (statutory charges to register):
– Statutory Fees are calculated by calculating the authorized share capital of the Company and
The rates for stamp duty vary for every state.
In addition to the fees statutory The registration process will also be accompanied by fees to obtain DSC, DIN, Stamps, Notary, and Professional Fees.
Declaration of Authorised Signatory (in relation to GSTN)
The Section 8 Company as incorporated under the Companies Act does not hold the minimum requirement Share capital. A trust-based NGO is administered by the Trustees in accordance with the Trust Deed. In the same way, Section 8 Company is controlled through The Board of Directors as per the MoA and AoA of the company.