An NGO or non-governmental organisation is a not-for-profit entity that does work for the welfare work for the poorer sections of society or toward a particular cause. Their focus may be environmental, human or animal rights, improving health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art. That said, many NGOs may also be fronts for political or religious interests. Being not-for-profit, these entities cannot pay out any profits as dividends to members; instead, any profit must be reinvested toward the cause. NGOs raise money from donors, who may or may not receive tax breaks on their donations. In India, an NGO can be set up as a trust, section-8 company or a society.
It is easy to register a Section 8 Company. All you need to do is follow a few easy steps and procedures, we have listed them down below:- Fill up the Section 8 Form The first step in registering a Section 8 Company is to fill the Section 8 Form. You need to enter all the details correctly. The next step is to get the DIN and the DCS signature of the directors of the Section 8 Company registered. Once done, you can apply for the name approval of the company. To apply for the name approval, you need to fill the Form No. INC 1 and submit it to the CRA or MCA. Applicants can give a maximum of 6 names. Once approved, the name of the Section 8 Company is valid for 60 days. Once you get your name approved you need to file the MOA and AOA with the registrar. The subscription pages of both should be signed by each subscriber to the memorandum and they should mention the name, address, description and occupation in the presence of a witness who shall attest the signature and shall likewise sign and add his name, address, description and occupation. Once you get this done, you need to apply for your Certificate of Incorporation and then apply for a company Tan and Pan card. This takes about 10-12 days to complete. Once you get the COI, PAN and TAN cards, your Section 8 Company is successfully registered. What are the differences between Trust, Society & Section-8 Company Management Trusts are managed by the trustees, while the society is functioning is managed by a committee or the managing council. A Section-8 company, on the other hand, has a board of directors. A trust must have at least two trustees, while a society requires seven (in case of a state-level society) and eight (in case of a national level society) committee members. A section-8 company requires two members for a private limited company and seven members to register it as a public limited company.
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