Section 8 Company Registration | Non-Profit Company Registration

Section 8 NGO Company Registration with LPC Consultancy

A Section 8 Company, also known as a Non-Profit Organization (NPO), is a legal entity registered under the Companies Act, 2013, dedicated to promoting charitable objectives such as education, arts, commerce, sports, environmental protection, social welfare, and other activities that benefit the community. Unlike other business entities, a Section 8 Company is not driven by profit but by a mission to contribute to societal good. At LPC Consultancy, we specialize in guiding individuals and groups through the process of Section 8 Company registration, ensuring compliance with all legal requirements and helping you establish a solid foundation for your non-profit activities.

Why Register a Section 8 Company?

Choosing to register your organization as a Section 8 Company offers numerous advantages, making it the preferred structure for non-profits in India:

Tax Exemptions: Section 8 Companies enjoy significant tax benefits, including exemptions under the Income Tax Act, which allows them to focus their resources on their core mission rather than tax liabilities.
Credibility and Trust: A Section 8 Company, being recognized by the government, holds a higher level of credibility and trust among donors, government bodies, and the general public, compared to other non-profit structures.
Legal Recognition: As a registered entity under the Companies Act, a Section 8 Company can own property, enter into contracts, and operate as a legal entity distinct from its members, providing greater legal security and continuity.
Donor Confidence: Registration as a Section 8 Company provides donors with confidence that their contributions will be used responsibly and for the intended charitable purposes, increasing the potential for fundraising.
Eligibility for Government Grants: Section 8 Companies are eligible to apply for various government grants, aids, and international funding opportunities, providing additional resources to further their causes.
No Minimum Capital Requirement: Unlike other types of companies, Section 8 Companies do not require a minimum share capital, making it easier to start and maintain.

Flexible Management Structure: Section 8 Companies can operate with a flexible management structure, allowing the organization to focus on its mission rather than being burdened by complex corporate governance rules.

Section 8 Company Registration Process

LPC Consultancy simplifies the Section 8 Company registration process by guiding you through each step, ensuring that your organization is set up correctly and efficiently:

Eligibility and Documentation Check: We begin by assessing your organization’s objectives to ensure they align with the criteria for a Section 8 Company. We then assist you in gathering all necessary documents, including identity proofs, address proofs, and the proposed MOA (Memorandum of Association) and AOA (Articles of Association).
Name Reservation: We help you choose and reserve a unique name for your Section 8 Company. The name must not conflict with existing entities and should reflect the charitable nature of your organization.
Drafting MOA and AOA: The MOA and AOA are the core documents that define your organization’s objectives and governance structure. LPC Consultancy drafts these documents to ensure they meet all legal requirements and effectively outline your mission.
Filing of INC-12 Form: We prepare and file the INC-12 form with the Registrar of Companies (ROC) to obtain a license for the Section 8 Company. This license is essential for recognizing your organization as a non-profit entity under the Companies Act, 2013.
Incorporation and Certificate of Incorporation: Once the license is granted, we file the incorporation documents, including the MOA and AOA, with the ROC. Upon approval, your organization receives a Certificate of Incorporation, officially recognizing it as a Section 8 Company.
PAN and TAN Application: After incorporation, we assist in applying for the Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for your Section 8 Company, ensuring you are prepared for all financial and tax-related operations.
Registration Under Section 12AA and 80G: To avail of tax exemptions and attract donations, LPC Consultancy helps you register your Section 8 Company under Section 12AA and 80G of the Income Tax Act. This is crucial for gaining tax benefits and enhancing donor confidence.

Ongoing Compliance and Support: Once your Section 8 Company is registered, we provide ongoing support to ensure compliance with all necessary legal and regulatory requirements, including annual filings, audits, and renewals.

Documents Checklist

Documents Required for Section 8 Company Registration

Identity Proof of Directors

PAN card, Aadhaar card, or passport of the directors.

Registered Office Address Proof

Recent utility bill (not older than two months), property tax receipt, or rent agreement and NOC if the office space is rented.

Details of Proposed Directors and Shareholders

Personal details and consent letters of the proposed directors and shareholders.

Address Proof of Directors

Voter ID, passport, or driving license.

MOA and AOA

Drafted documents outlining the objectives and operational structure of the organization.

MINIMUM REQUIREMENTS FOR SECTION 8 NGO COMPANY REGISTRATION

Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)

DIN (Director Identification Number) for all the Directors

Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)

DSC (Digital Signature Certificate) for all of the Directors

The directors and shareholders can be same person

Address proof for proposed office address

Why Choose LPC Consultancy for Section 8 Company Registration?

At LPC Consultancy, we understand the unique challenges and requirements of establishing a non-profit organization. Our team of experienced professionals is dedicated to helping you navigate the complex legal landscape to set up your Section 8 Company efficiently and correctly. Here’s why you should choose us:

Expert Guidance: Our legal experts have extensive experience in registering Section 8 Companies and can provide tailored advice to ensure your organization meets all necessary criteria.
End-to-End Support: From initial consultation to final incorporation and ongoing compliance, LPC Consultancy offers comprehensive support throughout the registration process.
Transparent Pricing: We offer clear, upfront pricing with no hidden fees, ensuring you understand the costs involved in registering your Section 8 Company.
Quick Turnaround: We prioritize efficiency, ensuring that your Section 8 Company registration is completed as quickly as possible without compromising on accuracy.
Ongoing Compliance Management: We don’t just help you start your Section 8 Company; we also provide ongoing compliance services to ensure your organization remains in good standing with the authorities.

Get Started Today

Ready to make a difference? Contact LPC Consultancy to begin the process of registering your Section 8 Company. Our expert team is here to guide you every step of the way, ensuring that your non-profit organization is set up to succeed in its mission.

WHAT ALL YOU GET

DIN for 2 Directors

MOA + AOA

Customized Incorporation Master File

Bank Account Opening Support

Digital Signature for 1 Director

Incorporation Certificate

Company PAN Card

Company Name Approval

New Incorporation Kit

Company TAN/TDS number

FAQs ON NGO 8

What is the process for appointing a director in a company?

The process involves obtaining a DSC, applying for a DIN, passing a board resolution, and filing Form DIR-12 with the ROC.
What documents are required for appointing a director?

Key documents include the DSC, DIN, identity proof, address proof, consent to act as a director (Form DIR-2), and a declaration of non-disqualification.
What is Form DIR-12?

Form DIR-12 is the form filed with the ROC to notify the appointment of a new director, containing details about the director and their role.
What is a DIN, and why is it required?

A DIN (Director Identification Number) is a unique identification number issued by the MCA to individuals who wish to serve as a director in any company.
Can an individual be a director in more than one company?

Yes, an individual can serve as a director in multiple companies, but there are limits on the number of directorships as per the Companies Act.
What happens if Form DIR-12 is not filed on time?

Failure to file Form DIR-12 within 30 days of the director’s appointment can result in penalties and the appointment being considered invalid.
Who can appoint a director?

Directors can be appointed by the company’s board of directors, shareholders, or a nomination committee, depending on the company’s articles of association.
What is the role of a non-executive director?

A non-executive director contributes to the company’s governance and strategic decision-making but does not participate in day-to-day operations.
How can LPC Consultancy help in appointing a director?

LPC Consultancy handles the entire process, from document collection to filing with the ROC, ensuring a smooth and compliant appointment.
Can a director be appointed without a board meeting?

No, a board meeting must be held, and a resolution must be passed to formally appoint the director.
Can a foreign national be appointed as a director in an Indian company?

Yes, foreign nationals can be appointed as directors in Indian companies, provided they meet the eligibility criteria and have the necessary documentation.
What is the difference between an executive and a non-executive director?

An executive director is involved in the company’s day-to-day management, while a non-executive director focuses on governance and strategy.
Is a Digital Signature Certificate (DSC) mandatory for directors?

Yes, a DSC is required for signing digital forms and documents submitted to the ROC.
What is Form DIR-2?

Form DIR-2 is the written consent from the director, stating their willingness to act as a director in the company.
Can a company appoint more than one director at a time?

Yes, a company can appoint multiple directors in a single board meeting, provided all necessary filings are completed.
What is a nominee director?

A nominee director is appointed to represent the interests of a shareholder, creditor, or financial institution on the company’s board.
Can a director be removed after being appointed?

Yes, a director can be removed through a shareholder resolution or by the board, depending on the company’s articles of association.
What is the tenure of an additional director?

An additional director holds office until the next AGM, after which the shareholders must confirm their appointment.
Is there a minimum age requirement for becoming a director?

Yes, an individual must be at least 18 years old to be eligible for appointment as a director in an Indian company.
What is the maximum number of directorships a person can hold?

An individual can hold a maximum of 20 directorships, with not more than 10 in public companies.
What is the process for resigning as a director?

A director can submit their resignation, and the company must file Form DIR-12 to inform the ROC of the resignation.
Can an LLP appoint a director?

No, LLPs have designated partners instead of directors, but partners can have similar roles in decision-making.
Is it necessary to update statutory registers after appointing a director?

Yes, the statutory registers of directors and key management personnel must be updated after appointing a director.
What is the role of an alternate director?

An alternate director is appointed to temporarily act on behalf of a director who is unable to attend board meetings for an extended period.
What sets a Private Limited Company apart from other business structures in India?

A Private Limited Company offers a balance between flexibility and limited liability, making it ideal for small to medium-sized businesses that wish to grow while minimizing personal financial risk.
Why should I consider registering my business as a Private Limited Company?

Registering as a Private Limited Company provides your business with legal recognition, enhances credibility, and opens up opportunities for investment and growth, while protecting your personal assets.
Can I start a Private Limited Company if I already have another business?

Yes, you can start a Private Limited Company even if you already own another business. However, the new company must operate as a separate legal entity with its own distinct identity.
What is the process for choosing the right business structure before registration?

Choosing the right business structure involves evaluating your business goals, investment plans, risk appetite, and long-term vision. Our experts at LPC Consultancy can help you make an informed decision.
What happens if my chosen company name is already taken?

If your preferred company name is already in use or does not meet the naming guidelines, you will need to submit alternative names. Our team will assist in checking availability and suggesting appropriate names.
How does a Private Limited Company protect my personal assets?

In a Private Limited Company, shareholders' liability is limited to the amount they have invested in shares. This means your personal assets are protected in case the company faces financial difficulties.
Can I run my Private Limited Company from home?

Yes, you can run your Private Limited Company from your home as long as the address is registered with the Ministry of Corporate Affairs as the official registered office of the company.
Is it necessary to have a physical office space to register a Private Limited Company?

While you need a registered office address, it does not have to be a commercial space. It can be a residential address, as long as it is in India and all legal notices can be served there.
How many shareholders are required to form a Private Limited Company?

A Private Limited Company requires a minimum of two shareholders and can have a maximum of 200 shareholders.
What is the role of a Director in a Private Limited Company?

Directors are responsible for managing the day-to-day operations of the company, making strategic decisions, and ensuring compliance with legal and regulatory requirements.
Can I appoint a foreign national as a director in my Private Limited Company?

Yes, foreign nationals can be appointed as directors in a Private Limited Company, provided they obtain a valid Director Identification Number and comply with other legal requirements.
What are the responsibilities of a shareholder in a Private Limited Company?

Shareholders own a portion of the company through their shares and have the right to vote on major decisions, such as the election of directors and changes to the company's structure.
Can I transfer shares in a Private Limited Company?

Yes, shares in a Private Limited Company can be transferred, but the process is more restricted compared to public companies. The transfer usually requires approval from the board of directors.
How does a Private Limited Company handle profits and losses?

Profits earned by the company can be distributed to shareholders as dividends, reinvested in the business, or held in reserves. Losses are borne by the company, and shareholders are not personally liable.
What is the significance of the Memorandum of Association (MOA) and Articles of Association (AOA)?

The MOA outlines the company’s objectives and scope of activities, while the AOA defines the internal rules for managing the company. Together, they form the company's constitution.
How does a Private Limited Company ensure compliance with regulatory authorities?

A Private Limited Company must comply with various regulations, including filing annual returns, maintaining statutory records, and adhering to tax obligations. LPC Consultancy offers ongoing compliance services to help manage these responsibilities.
What are the options for raising capital in a Private Limited Company?

A Private Limited Company can raise capital by issuing shares, obtaining loans, or seeking investments from venture capitalists, angel investors, or private equity firms.
How does a Private Limited Company maintain its perpetual succession?

Perpetual succession means that the company continues to exist even if shareholders or directors change, ensuring continuity of business operations.
What role does the Registrar of Companies (ROC) play in company registration?

The Registrar of Companies is the government authority responsible for registering companies, maintaining records, and ensuring that companies comply with legal requirements.
How do I ensure my Private Limited Company name is unique and compliant with regulations?

Our team at LPC Consultancy will help you conduct a thorough search to ensure your chosen name is unique and compliant with the naming guidelines set by the Ministry of Corporate Affairs.
What are the common challenges faced during the registration of a Private Limited Company?

Common challenges include name availability issues, document verification delays, and compliance with legal formalities. Our experts at LPC Consultancy help you navigate these challenges smoothly.
Can I convert my Private Limited Company into another business structure later?

Yes, a Private Limited Company can be converted into another business structure, such as a public limited company or LLP, by following the legal process. LPC Consultancy can assist with the conversion process.
What are the tax implications for shareholders in a Private Limited Company?

Shareholders in a Private Limited Company may be subject to tax on dividends received. Additionally, the company itself is subject to corporate taxes on its profits.
How does a Private Limited Company ensure confidentiality of its business operations?

While a Private Limited Company must comply with public disclosure requirements, it can maintain confidentiality in certain areas, such as internal management practices and shareholder agreements.
Why should I choose LPC Consultancy to help register my Private Limited Company?

LPC Consultancy offers personalized guidance, transparent pricing, and a commitment to timely and accurate service, ensuring your company registration process is efficient and stress-free.