The NGO Company or Section 8 Microfinance Company Registration in Uttar Pradesh or Section 25 Company, is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes. Start a NGO company ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other object’, provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members.

The NGO Company is similar to a Trust or Society but is registered under the Central Government’s Ministry of Corporate Affairs. Trusts and societies are registered under state government regulations. An NGO company has various benefits when compared to trust or society. NGO companies have improved recognition and better legal standing. NGO companies also have higher credibility among donors, government departments, and other stakeholders.

Process of Section 8 Microfinance Company Registration in Uttar Pradesh:

LegalChalo can register a Section 8 company microfinance registration in Uttar Pradesh in 25 to 40 days, subject to ROC processing time. Follow the steps for the Section 8 micro finance company registration process:

Steps to register:

Step 1: Obtain DSC and DIN

A digital signature certificate (DSC) and Director Identification number (DIN) are necessary for the proposed Directors of the NGO Company. DIN and DSC can be created for the proposed Directors within 6 to 9 days.

Step 2: Name Approval and License

After we got DIN and DSC,. Then, for atleast two Directors, application for reservation of name for section 8 company can be made to MCA. Then, the name is reserved, and a license must be obtained prior to incorporation.

Step 3: Section 8 Company Registration in Uttar Pradesh

After we get the license, registration documents must be submitted to the MCA along with an application for registration. MCA will generally approve the application for incorporation in 6 to 9 days, subject to their processing time.

Documents for Section 8 Microfinance Company Registration in Uttar Pradesh:

Several documents are required for a Section 8 microfinance company registration in Uttar Pradesh. These require proof of identity, such as a PAN card and Aadhaar card identifying directors and shareholders, proof of address, utility bills and passport-sized photographs, identity documents (MoA), articles of association (AoA), and proof of address for a company. These documents are required for Section 8 microfinance company registration in Uttar Pradesh in order to comply with the law and state laws and regulations. Find out the Section 8 microfinance company registration fees and documents in detail.

Identity Proof:

Aadhar and PAN card of the proposed director.

Bank statement of the proposed director.

Passport-size photo of the proposed director.

Specimen signature of the proposed director.

Email ID and phone number.

Address Proof:

Utility bill of a Section 8 Microfinance Company.

Rental agreement with a Section 8 microfinance company.

Advantages of Section 8 Microfinance Company Registration in Uttar Pradesh:

Social Impact:

Empowering low-income individuals and communities by providing access to essential financial services. Contributing to the upliftment of marginalized sections of society through economic empowerment. Promoting sustainable livelihoods and community development.

Operational Benefits:

Unlike traditional financial institutions, microfinance section 8 company registration does not require approval from the Reserve Bank of Uttar Pradesh, simplifying the setup process. The ability to offer a wide range of financial products and services tailored to the needs of the target population. There is no mandatory minimum capital investment, making it easier for organizations with limited resources to start operations. Potential income tax exemptions under specific conditions, allowing for reinvestment in social objectives.

Regulatory Advantages:

While adhering to the Companies Act, 2013, the compliance burden is relatively less compared to other financial institutions. The ability to provide loans without collateral, expands access to credit for those without assets.

Public Image and Trust:

Building a strong reputation as a socially responsible organization dedicated to community development. Gaining the trust of the target population by demonstrating a commitment to their welfare.

External Government Website Link: MCA