Registering a Section 8 Non-Profit Organization (NPO) in India is a significant step towards creating an entity dedicated to social welfare, education, charity, or any other purpose that benefits the public at large. At Bycadvisors, we offer expert guidance and comprehensive services to ensure your Section 8 NPO is established with precision and compliance.

What is a Section 8 NPO?

A Section 8 company is a type of organization in India that is established to promote arts, commerce, science, research, sports, education, charity, social welfare, religion, environmental protection, or any other purpose, provided it is for a non-profit cause. These companies are governed by the Companies Act, 2013.

Key Features of a Section 8 NPO

• Non-Profit Objective: The primary goal of a Section 8 company is to use its profits, if any, or other income, to promote its objectives and not for distributing dividends to its members.
• Legal Identity: A Section 8 company has a separate legal entity, which means it can own property, enter into contracts, and sue or be sued in its own name.
• Limited Liability: The liability of the members is limited to their shareholding or the amount guaranteed by them in case of winding up.
• No Minimum Capital Requirement: Unlike other types of companies, a Section 8 company does not require a minimum paid-up capital.

Steps for Section 8 NPO Registration

1. Name Reservation: The first step is to apply for the reservation of the company name with the Ministry of Corporate Affairs (MCA). The name must reflect the purpose of the organization.

2. Digital Signature Certificate (DSC): Obtain DSC for all the proposed directors, which is required for e-filing of forms.

3. Director Identification Number (DIN): Apply for DIN for all proposed directors.

4. Drafting of Memorandum and Articles of Association (MOA and AOA): These documents outline the objectives and the framework within which the NPO will operate.

5. Filing for Incorporation: Submit the incorporation form along with the required documents, including the MOA, AOA, and declarations from directors, to the Registrar of Companies (RoC).

6. License under Section 8: Upon approval of the incorporation documents, the MCA issues a license under Section 8, certifying the NPO’s objectives and allowing it to operate.

7. Certificate of Incorporation: After the license is granted, the RoC issues a Certificate of Incorporation, marking the official establishment of the Section 8 company.

Benefits of Registering as a Section 8 NPO

• Tax Exemptions: Section 8 companies can avail various tax exemptions under the Income Tax Act.
• Credibility: Being registered under Section 8 adds credibility to the organization, making it easier to gain public trust and attract donations.
• Legal Protection: The separate legal entity status provides protection to the directors and members from personal liability.

Why Choose BYC advisors?

At Bycadvisors, we simplify the complex process of Section 8 NPO registration. Our team of experts will guide you through every step, from name reservation to obtaining the Certificate of Incorporation. We ensure that your organization complies with all legal requirements, allowing you to focus on your mission to make a difference.