How to Register as an NGO under Section 8 Company in Uttar Pradesh

You need to take a legal form if you wish to incorporate a Section 8 Company. These entities are established to advance activities for the public good such as education, arts, science, sports or environment. The money funds their missions rather than being shared among members. This article discusses NGO Registration in Noida, its costs, and the documents required for registration.

What is a Section 8 Company?

A Section 8 company is created to promote charitable purposes. These companies promote education, social welfare enhancement, and the environment. Revenues go back to advancing their mandate and no monetary distributions are given to their shareholders. Unlike other corporations, such entities are not required to include words like “private limited” or “limited” hence they can choose any name for registration purposes.

Why Register a Section 8 Company in Noida?

New firms and non-profit organizations find Noida an attractive location due to the large number of them established there. Noida is preferred for NGO registration by several organizations because of its good environment for such activities. A Section 8 NGO can enjoy benefits such as tax exemptions, credibility, and a separate legal identity.

Benefits of Registering a Section 8 Company in Uttar Pradesh

♦ Tax Exemptions: These companies get tax exemptions under Section 12AA of the Income Tax Act.

♦ No Minimum Capital Requirement: Section 8 companies have no minimum obligatory paid-up capital. It promotes financial structuring flexibility.

♦ Enhanced Credibility: Section 8 companies are more credible because of the strict compliance rules.

♦ Distinct Legal Entity: Section 8 corporations possess a unique legal personality which gives them uninterrupted existence without regard for their shareholders.

Eligibility for Section 8 Company Registration

A Section 8 company in Noida can only be registered successfully if one meets specific eligibility conditions:

♦ Objective: The main objective of the entity should be to promote a social cause.

♦ Minimum Directors: It is necessary to have two people as directors to form a private company.

♦ Members: The private companies can have a maximum of 200 people. Public firms do not place any restrictions on the number of individuals.

Required Documents for Section 8 Company Registration in Noida

You must have all these documents to register your section 8 company. These are the documents you need:

♦ All the directors should have a director identification number (DIN).

♦ The proposed directors should have a digital signature certificate (DSC).

♦ Memorandum of association (MoA) and (AoA) articles of association.

♦ Utility bills or any other document giving proof of the registered office address.

♦ Directors' and subscribers' identity and address proofs.

♦ Declaration saying that the company will not distribute profits among its members.

These documents are essential to have a smooth Section 8 company registration process.

Step-by-Step Section 8 Company Registration Process

This is the detailed process of registering a Section 8 company online.

Step 1: Obtain the Digital Signature Certificate.

The first step is getting a Digital Signature Certificate (DSC) for all directors. This is a must-have while uploading any forms. Any individual can get his DSC from approved agencies.

Step 2: Fill Application for Director Identification Number (DIN)

Then after the DSC has been received, comes the step for application for a Director Identification Number (DIN). This is filed through Form DIR-3 together with the DSCs of the intended directors.

Step 3: Name Reservation

MCA enacts that reservation of company name is done by submission of Form INC-1. When selecting the company name, ensure that it is a new one and it relates to the purpose of the non-profit organization.

Step 4: Submit Incorporation Documents

After the name is approved, the next step is filling up Form INC-32 which contains the Memorandum of Association and Articles of Association of the company.

Step 5: Apply for the Section 8 Company License

For the license of Section 8 Company, the application should be made using Form INC-12 with supporting documents.

Step 6: Obtaining the Certificate of Incorporation

After verification of the documents and their approval, the MCA will issue the Certificate of Incorporation using form INC-16. This document is the legal basis of your Section 8 company incorporating the Registration with regulatory authorities legally.

Section 8 Company Registration Fees

The cost of registering Section 8 companies is determined by the services rendered and the number of directors. However, the charges for registering a Section 8 company are usually less compared to private limited ones. The professional fees range between 1,0000 and 12,000 rupees, while the government fees depend on the structure of your capital.

Tax Exemptions for Section 8 Companies

One reason for setting up a Section 8 company in Noida is because of the tax exemptions. Getting registered would help you apply for exemptions under sections 12A and 80G of the Income Tax Act. Applying such exemptions implies that any profit will not attract any taxation.

Conclusion

Registering a not-for-profit organization in Noida through Section 8 Company Registration can be an easy way to achieve many of the desired benefits. Proper understanding of the process is very essential if you want to incorporate a Section 8 NGO. With the appropriate papers, knowledge of the law, and proper guidance from experts, the whole process can be quite quickly concluded leaving you to concentrate on realizing your social goals. Get in touch with PSR Compliance today for expert assistance.

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