If you're planning to establish a non-profit organization in India, a Section 8 Company registration might be the right choice for you. This type of company is meant for promoting charitable, educational, or social welfare activities, without the intention of making profits. With the help of an experienced tax consultant like Deeksha Khurana from Taxlegit, you can navigate the process smoothly. Here's a step-by-step guide to the Section 8 company registration process.

Understanding Section 8 Company

A section 8 company registration is governed under the Companies Act, 2013, and is different from other types of companies because it is formed with the objective of promoting social causes. It is eligible for various benefits, including tax exemptions. To get started, the company must meet certain criteria set by the Ministry of Corporate Affairs (MCA).

Step-by-Step Guide for Section 8 Company Registration

Step 1: Choose a Unique Name

The first step in the registration process is choosing a name for your company. Ensure the name reflects your organization’s mission. You can also consider registering a trademark for added protection. Deeksha Khurana and the team at Taxlegit can guide you through the trademark registration process, ensuring your name is legally protected.

Step 2: Apply for Digital Signature Certificate (DSC)

For company registration, a Digital Signature Certificate (DSC) is required for the directors. This certificate ensures that the documents submitted online are authentic and secure. It is advisable to obtain a DSC early on in the process to avoid delays.

Step 3: Obtain Director Identification Number (DIN)

Each director of the company must obtain a Director Identification Number (DIN) before submitting the registration application. This is a unique number issued by the MCA to identify directors. You can apply for DIN online through the MCA portal.

Step 4: Draft the Memorandum of Association (MOA) and Articles of Association (AOA)

The Memorandum of Association (MOA) outlines the company’s objectives and scope. The Articles of Association (AOA) define the rules for the management of the company. Both documents are essential for the registration of your Section 8 Company.

Step 5: Submit the Application to MCA

Once the necessary documents are ready, submit the Form INC-12 to the Ministry of Corporate Affairs (MCA). This is the formal application for Section 8 Company registration. It requires details like the company's objectives, directors, and documents proving the non-profit nature of the organization.

Step 6: License Approval

Once your application is reviewed, the MCA will issue a License for Section 8 Company under the Companies Act, 2013. This approval confirms that your organization is now officially registered as a non-profit entity.

Step 7: Register for GST

If your Section 8 Company’s turnover exceeds the threshold limit, you will need to register for GST. Deeksha Khurana at Taxlegit can assist you with the GST registration process, ensuring compliance with all the requirements.

Step 8: Compliance and Ongoing Obligations

After registration, a Section 8 Company must comply with the annual filing requirements set by the MCA. Regular audits and financial statements must be maintained. Keeping your registration up to date and adhering to the rules is essential for maintaining your organization’s legal standing.

Conclusion

Registering a Section 8 Company is a step towards making a positive impact in society. With the guidance of experts like Deeksha Khurana from Taxlegit, you can ensure a smooth registration process. Additionally, don't forget to consider ISO certification, which can boost your company's credibility and reputation. Let the experts guide you through every process, including trademark registration, GST registration, and more, to ensure your non-profit stays compliant and grows effectively.