Master NGO Registration: Complete Roadmap for 12A and 80G Registration with Section 8 Company Registration
Starting a non-governmental organisation (NGO) in India is a terrific approach to help society. But first, you need to know how the law works. Section 8 Company Registration under the Companies Act, 2013 is one of the most dependable ways to register an NGO. This gives your business legal status, legitimacy, and the chance to get tax breaks. In addition to registering as a Section 8 corporation, you also need to get 12A and 80G registration to get tax breaks and promote donations.
This whole guide will tell you all you need to know about forming a Section 8 company, registering a Section 8 company, and applying for 12A and 80G registration.
Why Should You Register Your NGO as a Section 8 Company?
People think that Section 8 Company Registration is the best and most honest option to register an NGO in India. Companies that are registered under Section 8 have to observe severe corporate governance regulations. This is different from Trusts and Societies, which have less rules to follow. This makes them look more trustworthy to funders, businesses, and the government.
Here are the reasons why section 8 NGO registration is the best option:
- Legal Recognition: It gives you a legal identity under the Companies Act of 2013.
- Transparency: Strict rules on compliance make sure that people are responsible.
- Separate Legal Entity: After you set up a Section 8 company, your NGO can own property and have bank accounts in its own name.
- Tax Benefits: Once you’ve registered your Section 8 corporation, you may also apply for 12A and 80G registration. These will free your NGO from taxes and let donations claim deductions.
How to Register a Section 8 Company in Steps
If you want to register a Section 8 company, follow these steps exactly:
Step 1: Get your DSC and DIN
To finish section 8 of the online company registration, every director of the proposed NGO must have a Digital Signature Certificate (DSC) and a Director Identification Number (DIN).
Step 2: Get the name approved
Pick a unique name that fits with your goals and get it approved on the MCA website. Section 8 of the company registration process requires a proper name.
Step 3: Write the MoA and AoA
Write the Memorandum of Association (MoA) and Articles of Association (AoA). These documents explain what your NGO does and how it works for companies that are incorporated under Section 8.
Step 4: Get a Section 8 License
To receive a licence for a section 8 business to be incorporated, send in Form INC-12 with the required documentation to the Ministry of Corporate Affairs.
Step 5: Send in the forms to incorporate
When you obtain the licence, fill out SPICe+ forms to register your section 8 firm. You get a Certificate of Incorporation if your application is approved.
Documents Needed to Register a Section 8 Company
To register a Section 8 company successfully, you need:
- Directors’ PAN and Aadhaar
- Photos the size of a passport
- Proof of address
- Proof of registered office
- MoA and AoA
These papers make guarantee that your section 8 NGO registration is lawful.
Why should a Section 8 company apply for 12A registration?
The next important step for a Section 8 company after registering is to register for 12A under the Income Tax Act. Your NGO can avoid paying income tax on its earnings if it registers.
Advantages of registering for 12A:
- The NGO doesn’t have to pay taxes on its income.
- Eligibility for funding from the government
- Donors trust each other more
If your Section 8 company doesn’t have a 12A registration, it will be treated like a regular business and taxed the same way.
Why do you need to register for 80G for a Section 8 company?
After you register your NGO as a 12A, the next step is to register it as an 80G corporation under Section 8. This registration lets donors deduct their gifts from their taxes, which stimulates more donations.
Advantages of registering for 80G:
- Brings in donations from businesses and people
- Makes everything clear and builds trust
- Gives you more chances to get money
Donors can’t claim deductions if a Section 8 company doesn’t register for 80G, which might make them less likely to give.
Combining Section 8, 12A, and 80G to develop a roadmap for NGO registration
To make sure your NGO works well, follow this plan:
- Finish registering your corporation in section 8.
- If you want your Section 8 corporation to be tax-exempt, you need to apply for 12A registration.
- To get donations, a Section 8 company should apply for 80G registration.
- After you set up a Section 8 company, make sure you follow the rules.
Your NGO will be totally compliant, tax-exempt, and trusted by donors if you follow these steps.
Following the rules after registering a Section 8 company
You still have to follow the rules after finishing section 8 company incorporation:
- Send in your annual returns to the MCA.
- Keep your books and audits in order
- Have board meetings on a regular basis
- As needed, renew the Section 8 company’s 12A and 80G registrations.
If you don’t follow the rules, your NGO’s licence could be revoked or you could be fined.
Things to Avoid When Registering an NGO in Section 8
- Picking a name without checking to see if it’s available
- Writing MoA and AoA incorrectly
- Not remembering to apply for 12A registration for a Section 8 firm and 80G registration for a Section 8 company
- Not following the rules after registering a firm under Section 8
Why Section 8 Companies Are the Best Option
Section 8 companies are the best way for NGOs in India to get their work done. They are the first choice for donors, businesses, and government agencies because they follow tight rules for compliance and corporate governance.
Section 8 NGO registration is the best way to go if you want to start a professional, trustworthy, and money-making nonprofit.
Conclusion
It is a good idea to start an NGO, but you need to prepare ahead and follow the law. Section 8 Company Registration is what makes your NGO a legal entity. After you register your Section 8 company, you should also apply for 12A and 80G registration so that you can get tax breaks and get more donations.
In short, there are three things you need to do for your NGO to be successful:
- Sec 8 company registration for legal identification
- 12A registration for tax exemption
- 80G registration for donor benefits
This blueprint will help your NGO run smoothly, build trust, and reach its goals.
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