Guidelines for Registering a Section 8 (NGO) Organization in Rajasthan

Guidelines for Registering a Section 8 (NGO) Organization in Rajasthan

Registration Procedure for Section 8 Organizations

Section 8 organizations, registered under the Companies Act, 2013, operate with the aim of promoting various sectors such as commerce, art, science, sports, education, research, and social welfare without pursuing profits for dividend distribution among its members. Here are the steps to register a Section 8 organization in Rajasthan:

Minimum Director Requirements:

Depending on whether the organization is registered as a Private Limited Company or a Public Limited Company, the minimum number of directors varies. For a Private Limited Company, a minimum of two directors is required, whereas for a Public Limited Company, a minimum of three directors is mandated. However, regardless of the type, the maximum number of directors in a Section 8 company should not exceed twenty. Additionally, if the organization involves foreign entities, at least one resident director is necessary as per Section 149(3) of the Act.

Documents Required for Registration:

Registration Procedure:

The Ministry of Corporate Affairs has simplified the registration process for Section 8 organizations by eliminating the requirement of filling form INC 12 during Incorporation. The registration can be done through SPICE+ PART -A for name reservation followed by filling SPICE+ PART -B or directly filling SPICE+ PART -B. The license of the Section 8 company is allotted at the time of incorporation itself. The registration steps include:

Application Procedure for DIN Allotment

The process for obtaining a DIN is straightforward and involves the following steps:

Compliances:

Penalties:

Failure to comply with the regulations of Section 8 registration can lead to penalties ranging from fines of 10 lakh Rupees to 10 crore Rupees for the company and fines of 25 thousand Rupees to 25 lakh Rupees or imprisonment for the directors and officers found in default. If fraudulent conduct is proven, officers of the company can be held liable under section 447.

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