NGO Registration (Section 8)
Apply for Registration
Get your NGO registered under ideal business structure as section 8 company.
- Filing of E-forms
- Name approval
- DSC (2 nos)
- Filing of SPICe form
- Issue of Incorporation Certificate
- Issue of Section 8 NGO license
- Includes Govt Fees & Stamp duty for Authorized Capital upto Rs. 10 Lakh
- Excludes foreign national / Body Corporate as director or business needing RBI/SEBI approval
₹7,999/-
(42%) off
How it is Done
Simplify the process by ensuring you have all necessary paperwork ready
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All Necessary Data Collection
Provide all the documents. Our team will initiate the paper work on your behalf
Streamlined Document Processing
The document filing process will commence through the designated portal
Get Your Certificate
Section-8 Company is completed and the certificates will be sent to you.
Section-8 Registration Overview :
A Section 8 Company, as per the Companies Act, 2013 in India, is a unique form of organization that operates with the primary objective of promoting charitable or not-for-profit activities. Also known as a Section 8 Corporation, this legal structure allows entities to pursue philanthropic goals without aiming for profits. Here’s an overview of Section 8 Companies, encompassing their formation, objectives, regulations, and impact on society.
Formation and Legal Framework: Section 8 Companies derive their name from Section 8 of the Companies Act, 2013, which governs their formation and functioning in India. These organizations are established for the advancement of specific social or charitable causes, including those related to education, science, art, social welfare, religion, charity, and more. The primary distinction lies in their not-for-profit orientation.
Objectives and Charitable Purposes: The key characteristic of Section 8 Companies is their commitment to social welfare, and their objectives are explicitly defined to promote activities that benefit society. These may include promoting education, eradicating poverty, advancing healthcare, supporting the arts, and undertaking environmental initiatives. The organization’s purpose must align with the broader goal of serving the public without pursuing profits for its members.
No Dividends to Members: One critical feature of Section 8 Companies is the prohibition of distributing dividends among members. Any surplus generated through the organization’s activities is reinvested to further its charitable objectives. This ensures that the entity’s resources are consistently directed towards the betterment of society rather than individual financial gains.
Incorporation and Registration Process: To establish a Section 8 Company, interested parties must apply for a license from the Registrar of Companies (RoC). This involves submitting a detailed memorandum and articles of association, along with information about the organization’s objectives, governing body, and financial projections. The RoC examines the application, and if satisfied, grants the license for incorporation as a Section 8 Company.
Tax Exemptions and Benefits: Section 8 Companies are eligible for tax exemptions under the Income Tax Act. Donations made to these organizations may qualify for deductions under Section 80G, encouraging individuals and businesses to contribute to social causes. These tax benefits enhance the financial sustainability of Section 8 Companies, allowing them to amplify their impact on communities.
Governance Structure: Similar to other companies, Section 8 Companies have a governance structure that includes directors and members. However, these individuals do not receive dividends, ensuring that the organization’s resources are consistently directed towards achieving its charitable objectives.
Impact on Society: The establishment of Section 8 Companies has had a transformative impact on society by fostering organized efforts to address various social challenges. These entities play a crucial role in fields such as education, healthcare, environmental conservation, and poverty alleviation. By leveraging their not-for-profit status, Section 8 Companies mobilize resources, encourage philanthropy, and collaborate with diverse stakeholders to drive positive change.
Challenges and Compliance: While Section 8 Companies are pivotal in the social sector, they face challenges related to compliance and sustainability. Striking a balance between operational efficiency, financial viability, and adherence to regulatory norms requires adept management and strategic planning.
In conclusion, Section 8 Companies serve as instrumental entities in channeling efforts towards social welfare and development. Their unique legal structure encourages a spirit of altruism and collective responsibility, making them vital contributors to the broader landscape of social impact in India.
Benefits of Having a Food License:
Section 8 Companies, governed by Section 8 of the Companies Act, 2013 in India, are established with the primary objective of promoting charitable or not-for-profit activities. These entities enjoy several benefits, both in terms of legal privileges and their impact on society. Here are some key benefits associated with Section 8 Companies:
Legal Recognition: Section 8 Companies are legally recognized entities under the Companies Act, providing them with a formal structure to pursue charitable and philanthropic objectives. This recognition lends credibility and legitimacy to their activities.
Not-for-Profit Status: One of the primary benefits is the not-for-profit status, meaning that the organization is prohibited from distributing profits among its members. Any surplus generated is reinvested in the organization’s charitable activities, ensuring a dedicated focus on societal welfare.
Tax Exemptions: Section 8 Companies are eligible for various tax exemptions under the Income Tax Act, 1961. Donors contributing to these organizations may avail tax deductions under Section 80G, incentivizing philanthropic contributions.
Access to Grants and Funding: Many government and non-governmental agencies, as well as international organizations, prefer to provide grants and funds to Section 8 Companies due to their not-for-profit status and their commitment to social welfare. This enhances their ability to secure financial support for their projects.
Enhanced Credibility: The legal framework and the not-for-profit nature of Section 8 Companies contribute to enhanced credibility. This can attract donors, volunteers, and partnerships with other organizations, fostering collaborative efforts to address social challenges.
Flexible Governance Structure: Section 8 Companies have a flexible governance structure that includes a board of directors and members. While they operate with a business-like approach, the emphasis is on ensuring that resources are directed towards achieving the organization’s charitable goals.
Perpetual Succession: Like any other company, Section 8 Companies enjoy the benefit of perpetual succession. This means that the organization continues to exist irrespective of changes in its membership or leadership, providing stability and longevity to its operations.
Impact on Social Issues: Section 8 Companies are instrumental in addressing various social issues such as education, healthcare, poverty alleviation, environmental conservation, and more. Their activities have a direct and positive impact on communities and society at large.
Ease of Registration: While the registration process involves obtaining a license from the Registrar of Companies (RoC), the regulatory framework is designed to facilitate the establishment of Section 8 Companies. The incorporation process is streamlined, making it accessible for organizations with charitable objectives.
Encouragement of Philanthropy: The not-for-profit status and tax exemptions associated with Section 8 Companies encourage philanthropy. Individuals and businesses are more inclined to contribute to organizations that can offer tax benefits, thereby increasing the pool of resources available for charitable causes.
Capacity for Social Innovation: Section 8 Companies have the flexibility to engage in innovative approaches to address social issues. Their not-for-profit status allows them to experiment with novel solutions and adapt to evolving societal needs.
Requirement of Section-8:
The requirements for establishing and operating a Section 8 Company in India are governed by the Companies Act, 2013. Section 8 of the Act outlines the legal framework for companies with charitable objectives. Here are the key requirements:
Objective and Purpose: The primary objective of a Section 8 Company should be the promotion of charitable or not-for-profit activities. The proposed activities must fall within the scope of social welfare, education, science, art, religion, charity, or any other form of charitable purpose.
Minimum Directors and Members: A Section 8 Company must have a minimum of two directors and, in the case of a private company, a minimum of two members. For a public company, the minimum number of members is seven.
Name Approval: Choose a unique and appropriate name for the company. The selected name needs approval from the Registrar of Companies (RoC), and it must adhere to the naming guidelines specified in the Companies Act.
Memorandum of Association (MOA) and Articles of Association (AOA): Draft the MOA and AOA, which outline the company’s objectives and governing rules. These documents must be filed with the RoC during the registration process.
Director Identification Number (DIN): Obtain a Director Identification Number for each proposed director. DIN is a unique identification number required for individuals intending to become directors of the company.
Digital Signature Certificate (DSC): Obtain Digital Signature Certificates for the directors. The DSC is required for digitally signing the incorporation documents.
Registered Office: Provide proof of the registered office address for the Section 8 Company. This can include a utility bill, rent agreement, or any other valid document.
Declaration of Compliance: Submit a declaration of compliance stating that all the requirements of Section 8 and the relevant provisions of the Companies Act have been complied with.
License Application: Apply for a license from the RoC by submitting the necessary documents, including the MOA, AOA, and details of directors and registered office.
Board Resolution: Provide a board resolution stating the intent to apply for a Section 8 license and authorizing specific individuals to act on behalf of the company during the incorporation process.
No Objection Certificate (NOC): If the proposed registered office is owned by another person, obtain a No Objection Certificate (NOC) from the property owner.
Payment of Fees: Pay the prescribed fees for the incorporation and obtain the necessary stamp duty for the MOA and AOA.
Approval from Relevant Authorities (if applicable): If the proposed activities require approvals or licenses from specific regulatory authorities, obtain such approvals before or after the incorporation, as per the regulatory requirements.
Tax Registration: After incorporation, the Section 8 Company must obtain tax registrations, including PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number).
Types of Section 8:
Section 8 Companies in India, as governed by Section 8 of the Companies Act, 2013, do not have traditional types like private or public companies. Instead, they are classified based on their objectives and areas of focus. Here are some common types of Section 8 Companies based on their charitable purposes:
Educational Institutions: Section 8 Companies dedicated to the promotion of education, including schools, colleges, and educational foundations.
Healthcare and Medical Research Organizations: Entities focused on healthcare services, medical research, and the promotion of public health fall under this category.
Environment Conservation and Sustainability: Companies working towards environmental conservation, sustainable development, and eco-friendly initiatives.
Social Welfare and Development: Organizations dedicated to social welfare, poverty alleviation, rural development, and community empowerment.
Art and Culture Promotion: Entities engaged in the promotion of art, culture, literature, and other creative endeavors.
Religious and Spiritual Organizations: Organizations with a focus on religious or spiritual activities, promoting cultural and ethical values.
Women and Child Welfare: Companies working towards the welfare of women and children, including initiatives related to health, education, and empowerment.
Scientific and Research Organizations: Entities involved in scientific research, technological innovation, and advancements in various fields.
Animal Welfare Organizations: Companies dedicated to the welfare and protection of animals, including shelters, rescue organizations, and advocacy groups.
Sports and Youth Development: Organizations promoting sports, physical fitness, and the overall development of youth in society.
Housing and Urban Development: Companies focused on providing housing solutions, urban development, and infrastructure projects for the benefit of the community.
Agricultural and Rural Development: Entities working towards the improvement of agriculture, rural livelihoods, and sustainable farming practices.
Disability and Special Needs Organizations: Companies dedicated to the welfare, empowerment, and inclusion of individuals with disabilities and special needs.
Human Rights and Advocacy Groups: Organizations working towards the protection of human rights, social justice, and advocacy for marginalized communities.
Philanthropic Foundations: Foundations engaged in philanthropy, providing grants and support to various charitable causes and initiatives.
Documents for Section 8 Registration:
Memorandum of Association (MOA): The MOA defines the company’s objectives, the area of operation, and the purpose for which it is being established. It must align with the charitable or not-for-profit nature of Section 8 Companies.
Articles of Association (AOA): The AOA outlines the internal regulations and rules governing the company’s operations. It includes information about the board of directors, meetings, and other operational aspects.
Declaration by Promoters: A declaration by promoters stating that they have not been convicted of any offense in connection with the promotion, formation, or management of any company.
Estimate of Annual Income and Expenditure: An estimate of the company’s expected annual income and expenditure for the next three years. This is required to assess the financial viability of the organization.
Statement of Assets and Liabilities: A statement of assets and liabilities of the company, prepared by a practicing chartered accountant or company secretary.
Affidavit from Each Director and Subscriber: An affidavit from each director and subscriber of the memorandum stating that they are not associated with any other Section 8 Company as a director or promoter.
Consent to Act as Director: Consent to act as a director from each person proposed as a director of the company.
Proof of Identity and Address: Proof of identity and address of each director, such as a PAN card, Aadhar card, passport, or driver’s license.
Proof of Registered Office: Documents providing proof of the registered office address, such as a utility bill, rent agreement, or ownership documents.
No Objection Certificate (NOC) from the Property Owner: If the registered office is owned by another person, a No Objection Certificate (NOC) from the property owner is required.
Board Resolution: A board resolution passed by the board of directors authorizing the application for a license under Section 8 and authorizing specific individuals to act on behalf of the company during the incorporation process.
Digital Signature Certificate (DSC): A Digital Signature Certificate is required for digitally signing the incorporation documents. Each director must have a valid DSC.
Director Identification Number (DIN): Director Identification Number for each director. DIN is a unique identification number required for individuals intending to become directors of the company.
Power of Attorney (if applicable): A Power of Attorney authorizing an individual to act on behalf of the company during the incorporation process, if necessary.
License Application Form: The application form for obtaining a license under Section 8, duly filled and signed.
Sample Certificate
FAQs
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- A NGO or Non Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
- In India, an NGO can be registered as any of the three structures being Company under Section 8 of the Companies Act, 2013(section 25, companies act 1956), Trust or Society.
- Section 8 Company format of a NGO is most popular form of NGO in India. It is easy to register, run or manage a Section 8 Company in comparison of a Trust and a Society.
The key characteristics of an NGO section 8 company are:
- Object:
*It operates for common welfare of masses at large, for promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
- Object:
- Profit Earning:
*The objective is not to earn profit. If any profit is earned during course of its operation, the same is not to be shared among owners/members rather utilised for attaining the objects for which NGO was formed.
- Profit Earning:
- Utilisation of funds and earnings:
*The profits, if any, or other income is used towards promoting of specific objects of NGO. Further there is restriction on declaration of profits as dividend to members.
- Utilisation of funds and earnings:
- Minimum two shareholders;
- Minimum two Directors (Directors and shareholders can be same person);
- At least one Director shall be resident in India;
- No Minimum capital required;
- Income-tax PAN is a mandatory requirement in case of Indian nationals;
- Any one of the Identity Proof (Voter ID/Aadhar Card/Driving License/Passport); Passport is mandatory requirement for proof of identity in case of foreign nationals;
- Any one Proof of Residence (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement);
- Registered Office address proof (rent agreement along with latest rent receipt and copy of latest utility bill in the name of landlord and a no objection certificate from the owner of the premises, in case the premises are rented);In case the premises are owned by a Director and Promoters, any documents establishing the ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.
Digital Signature is the only secure and authentic way that a document can be submitted electronically. All filings of e-forms on MCA Portal are required to be filed with the use of Digital Signatures by the person authorised to sign the documents.
Under the plan you can obtain 2 class II digital signatures along with E-token, having a validity of 2 years.
In Expert’se, you already have a DSC, our experts will offer you some concession accordingly on the above package
The incorporation process gets completed on obtaining the license and issue of incorporation certificate under section 8 of Companies Act 2013, (earlier section 25 of Companies act 1956).
The whole process of company incorporation can be closed less than 15 days.
The time taken also depends on relevant documents provided by the applicant and speed of approvals from government.
To ensure speedy registration, please pick a unique name for the proposed Company and make sure you have all the required documents prior to starting the registration process.
Below are the charges applicable for DIN, DSC and other government forms:
- DIN-Director Identification Number (2 Nos): Rs.1000
- DSC-Director Identification Number(2 Nos): Rs.2000
- RUN Form (Name Approval): Rs.1000
- INC 12 Form (Registration under section 8): Rs. 2000
- AoA-Article of Association: Rs.1000 (up to Rs.10 lakh of authorized capital)
- MoA-Memorandum of Association: Rs.5000
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