Incorporate a Non-Profit Company with Zero Consultancy Fee!

Establishing a nonprofit company in India can be a deeply rewarding endeavor. If you are encouraged to invest in community development or want to commit towards social welfare, art, science, or education, Section 8 company registration can be the business type choice. For the startups and established companies, the Section 8 company business type is the topmost selected structure. Let’s delve into this guide to explore a comprehensive process for Section 8, the registration without a consultancy fee, to save a significant amount.

Why Choose a Section 8 Company?

Before exploring how you can save the consultancy fee, let’s first discover why the Section 8 company is the best choice. We would like to inform you that a Section 8 company is a category of non-profit organization regulated by the Companies Act of 2013. This legal business structure was introduced to promote arts, sciences, sports, and social welfare. Most of the non-profit companies in India are NGOs that work for charity to help lower-class people. 

What advantages does one gain by selecting a Section 8 Company?

The multiple benefits of the Section 8 company legal structure are the most attractive points. Here are the advantages of business registration online:

• Credibility and Trust: Compared to trust and societies, the professional image and credibility are higher for a registered Section 8 company. As these companies are registered under the Companies Act, the layer of professionalism covers them directly. Due to the strong legal framework, these companies can collect donations easily.

• Legal Identity: A Section 8 company functions as a distinct legal entity. This indicates that it is independent of its owner. Consequently, it has the capacity to possess property, engage in contracts, and initiate or defend legal actions under its own name.

• No Minimum Capital Requirement: Unlike the other companies, for the formation of a Section 8 company, there is no need for a paid-up requirement. This benefit enables the individual to establish a nonprofit company without investing a larger amount.

• Tax Benefits: The company that secures the 12A and 80G registration under the Income Tax Act, 1961, is eligible to enjoy the tax exemptions. With the tax advantages, it encourages companies to make more contributions.

• Professional Management: The legal framework of a Section 8 company is similar to a regular company, as it is also handled by the Board of Directors. The organizational framework is designed to promote accountability, transparency, and effective management.

Also Read: Why Section 8 Registration is the Smartest Legal Step for your NonProfit

Understanding the “Zero Consultancy Fee” Aspect

For online business registration in India as a Section 8 company, it is necessary for the applicant to engage a consultant. The consultant provides the service to guide company registration. However, “zero consultancy fee” doesn’t mean that the entire cost is null, but it means you can save an amount with a few experts’ offers. Apart from the consultancy cost, you further need to pay the compulsory statutory fees. In order to acquire the Digital Signature Certificate (DSC), businesses must remit the requisite fee to the Ministry of Corporate Affairs (MCA). 

A company can register as a nonprofit company in India without hiring a consultant. However, without the proper knowledge, the company registration process can increase the chances of error.

Thus, the guidance and assistance of consultants are essential.

Tips for a Smooth Zero-Consultancy Registration

For Section 8 registration, the company is required to utilize the MCA portal, understand its guidelines, and proceed with online registration. The important considerations are:

Read the MCA User Manuals

The Ministry of Corporate Affairs (MCA) portal is used for business registration online in India. The MCA portal can be your best companion as it guides you through the detailed user manuals and also has FAQs for all forms. 

Utilize the MCA Helpdesk

During the registration, you can face the challenges. No need to worry, as MCA provides a helpline number as well as an email ID to guide and support the applicant for a successful business registration. 

Gather Documents Early

To avoid delay or rejection, prepare the necessary documents early. Before submitting the documents online, you must verify that all certificates are scanned and accurate. Attach the documents in PDF form or the specified format by MCA.

Double-Check Information

The incorrect details can lead to rejection and delay. Therefore, double-check the addresses, names, and other document details before submission. 

Use a Reliable Internet Connection

Now, the company registration process has become online. Since the process has become online, having a stable internet connection is crucial. Must ensure the connection stability before registration. 

Be Patient

The company registration as a Section 8 company in India takes a long time. The government process is a little lengthy due to multiple applications. File all the certificates in advance to reduce the process timeline. 

Zero-Cost Registration

The government cost is fixed and mandatory. However, the cost can differ in obtaining a DSC and potentially taking the expert service.

Professional service

Avoid the consultancy service and take professional support to streamline the Section 8 company registration online in India. The professional service includes the necessary document preparation and is mostly helpful in adhering to compliance. 

Also Read: Pune ChangeMakers are Choosing Section 8 Registration and Here is Why

Final Thoughts | Section 8 Microfinance Company Registration

Navigating the company incorporation prospects can seem daunting. However, doing the Section 8 company registration in India alone is achievable without investing in consultancy. The government is further introducing new forms and ways to make the process accessible. The SPICe+ form made the business registration online steps more seamless. 

Remember, your dedication to your mission starts with taking the initiative to navigate the legal framework yourself. To walk alone for the registration of a company as a non-profit, gather the important documents early, understand the MCA guidelines, and despite appointing a consultant, hire a professional for service. 

Start now a charitable work to promote education and art in a community. Company Registration Online can be your best partner for a professional service. 

FAQ | Company Registration in India as Section 8

1. What is the cost of NGO establishment in India?

Ans. To start an NGO in India at a state level, the amount is Rs 18,000, while for the national organization establishment, the required amount is Rs 23,000.

2. Can I register an NGO with an investment amount?

Ans. No, you need to pay the amount for the application registration. The amount is also associated with government charges and expert fees.

3. Which license is required for non-profit company registration?

Ans. For the nonprofit company, you are required to obtain a Section 8 license. 

4. What is the minimum required of members for a Section 8 company registration in India?

Ans. For the establishment of a Section 8 company, it is required to have a minimum of two directors and two members/shareholders. At least one of these individuals must be an Indian citizen.

5. Who acts as the owner for the Section 8 company?

Ans. A Section 8 company is a type of non-profit company and is separate from its owner. There is no individual owner, as it is formed by individual group members.