Section 8 company registration- registration SEVA !!
“Think like a wise man but communicate in the language of the people.” - William Butler Yeats
Monday August 14, 2017,
4 min Read
We all have seen, people near by us doing some kind of Charitable activities whether it is related to our custom's or religious or cultural activities. Our Society have also encouraged these activities to support the people involved in these activities, as people believe on them. Indian Youth now-a-days are very much interested & concern about social support. In School's & College's we use to see student participating in social activities.
People form a charitable organization whenever they plan to serve the society at large. It means that charitable organization serve only to the society & only society welfare is mainly basic objective of the organization.
More than Lakh NGO's registered in India. Most are Trust & Society and very little number of Section 8 Company comparatively to Trust & Society. Out of which many working towards the welfare of public at large. Trust & Society's are very traditional concept of NGO registration & so there is no Compulsory regulatory body behind them to keep regular check on their working. How they raise funds & where funds are getting utilized ???. This is a major drawback of these entity. Although it is mandatory to file Income tax return regarding income & expenditure status to Income Tax Authority but people file the return according to their wish & they don't have a sense of fear that what will be causes If they don't do the compliance on time.
As a professional it is always advisable to register an NGO through Section 8 Company. It has more advantage over & above Trust & Society. It is always considered more authentic entity. Company 's who's are covered under mandatory compliance of Corporate Social Responsibility always look of Section 8 Company for donation. Section 8 Company has all that features which are associated with Trust & Society. Like Section 8 Company can have 80G certificate & 12 A licence under Income Tax act. People's can be associated as volunteers with Section 8 Company
Section 8 Company has abolished all practical problems which were in case of earlier registered entity. There is a regulatory body http://www.mca.gov.in/ under Ministry of Corporate affairs. It is a Central Govt. registration & have working scope of all over India. No further state registration is required after getting Section 8 Company registration. Company get registered in a very simplify & effective manner through a effective mechanism of MCA. First Step to register a Section 8 Company is processing Digital Signature Certificate to process Director Identification No for both the director's. There is a minimum requirement of 2 members to register a Section 8 Company.
Step 2- An application in form INC-1 has to be filed to MCA for Company name approval. Usually MCA take time of minimum 4-5 working days to process the application & if everything goes right Company name get approve which will be available for registration for a period of 60 days.
Step-3- An application in form INC-12 has to be filed with certain mandatory attachments to MCA for approval of Licence to run a charitable organization. Certain declaration's & documents with disclosure are there regarding both the proposed director's & member's. Usually MCA take time of 10-15 working days to process this form & providing the licence under section 8 of Company Act, 2013
Step-4- An application in form INC-7 after approval of form INC-12 has to be filed to MCA for final approval explaining the description of work along with Memorandum & Article of Association of the Company with other attachment's. Once department satisfy that everything has been done in a very proper manner & all information are true & correct, it issue a final Certificate of Incorporation or Final registration Certificate.
Step-5- Apply for Company PAN Card, so that One can apply for opening Company bank account to start the Company operation.