NGO Registration in Delhi: A Comprehensive Guide to the Registration Process

Section 8 Company registration

A Non-Profit Organisation in India is registered under the Companies Act 2013, as a Section 8 Company with a non-profit motive. The main objective of the creation of Section 8 Companies includes the promotion of arts, commerce, charity, and education, protection of the environment, science, social welfare, sports, research, and religion and aims to apply its profits if any, or other income to promote all these works. The functioning of a Non-Profit Organisation after NGO section 8 company registration is precisely similar to a limited company including all the rights and obligations that come with such a company.

However, there is a difference between companies in one very crucial aspect, i.e. a company registered under section 8 NGO Registration cannot use the words “Section 8” or "Limited" in its name. Section 8 Company is the common kind of NGO in India and it is quite easy to register, run or manage.

The income of the Section 8 Company is used to promote only charitable objects and cannot pay any dividend to the members of the company.

ADVANTAGES

1. TAX EXEMPTION
   The company that has completed the Section 8 company registration online process enjoys numerous Tax exemptions provided to Section 8 Companies, specifically the benefits granted to the donors who are contributing to Section 8 Companies. The donors can claim the Tax exemption against their donation to a Section 8 company.
2. CAPITAL REQUIREMENT
   Unlike other entities such as public limited, there is no set limit for companies under section 8 company registrations online in Delhi for the minimum capital requirement. However, the capital structure can be revised anytime during the growth of the company.
3. STAMP DUTY
   Moreover, a company that is registered under company registration section 8 in Delhi doesn’t have to pay stamp duty for registration as applicable in the case of other companies like a private limited or a public limited company.

TRANSFER OF OWNERSHIP

The members of a private limited company cannot transfer their shares however in the case of Section 8 Company; the members can easily transfer the ownership of the company.

Section 8 NGO Registration in Delhi: Documents Needed

• Aadhar Card
• Income tax returns can only be filed in case the PAN card of the person is linked with an Aadhar number.
• Address proof
• For Indian nationals, PAN is compulsory while for foreign nationals, apostilled or notarised copy of the passport is important and needs to be submitted.
• Residence proof documents such as bank statements/ electricity bills need not be more than 2 months old.

Section 8 company formation is quite easy as compared to other kinds of companies but apart from document collection, preparation and drafting, the individuals have to complete another process as well.

Request Call Back

Do you want to know more about the NGO section 8 company registrations in the Delhi process? Just submit your details and our financial advisors will get in touch with you soon.

Now get the best assistance regarding section 8 company formations in Delhi by calling the experts at Valcus at the time you need it.