Introduction:-
Registering an NGO as a Section 8 company is a significant step towards formalizing your organization's operations and establishing credibility in the social sector. However, it's crucial to understand the associated costs and fees involved in the registration process. In this article, we'll delve into the various expenses you can expect when registering an NGO as a Section 8 company.
Understanding the Section 8 Company:-
A Section 8 company is a type of non-profit organization that is formed with the objective of promoting charitable activities. These organizations are registered under Section 8 of the Companies Act, 2013 in India. Unlike other companies, Section 8 companies do not distribute profits among their members. Instead, any surplus generated from their activities is reinvested for the organization's objectives.
NGO Section 8 Company Registration Fees:-
1.Government Fees:
- The first significant expense is the government fees associated with the registration process. This includes charges for name approval, filing of incorporation documents, and obtaining the Certificate of Incorporation.
2. Stamp Duty:
- Depending on the state in which you are registering the NGO, there might be stamp duty applicable. This is a tax levied on legal documents, including those related to company registration.
3.Professional Fees:
- Engaging the services of a professional consultant or a legal advisor is advisable during the registration process. They can provide expert guidance, ensure compliance with regulations, and help with the documentation process. Professional fees may vary depending on the complexity of the registration and the services provided.
4. Document Preparation and Notarization:
- Various documents, such as the Memorandum of Association and Articles of Association, need to be prepared and notarized. These processes involve additional costs.
5. Digital Signature Certificate (DSC):
- Obtaining a DSC is mandatory for the authorized signatories of the Section 8 company. It is a digital equivalent of a physical signature and requires a nominal fee.
6. Director Identification Number (DIN):
- Directors of the Section 8 company need to obtain a unique identification number from the Ministry of Corporate Affairs, which comes at a nominal cost.
7. Registered Office Address:
- Renting or leasing an office space for the registered office of the NGO is an additional expense.
Conclusion:-
While registering an NGO as a Section 8 company comes with associated costs, it is important to view these expenses as an investment in the organization's future. The benefits of formal registration, such as tax exemptions and enhanced credibility, far outweigh the initial financial outlay. To ensure a smooth and cost-effective registration process, seeking guidance from experienced professionals is highly recommended.