Section 8 Company Registration in India - Register Your NGO Online
A Section 8 company is a non-profit limited company that promotes education, art, science, culture, research, or social work, with profits reinvested in that cause. Incorporate within 15-20 working days with a 100% online process and receive legal recognition and tax benefits. Our CAs and company secretaries have processed over 350+ Section 8 company registrations.
- 15-20 working days
- 2/3 Directors Minimum
- 2/7 Minimum Member
- Profit Restrictions
- No Minimum Paid-up Capital
Everything included in your Section 8 company registration package
- Digital Signature Certificates (DSC)
- Director DIN Filing
- Company Name Reservation (SPICe+ Part A)
- Drafting of MOA and AOA
- Form INC-1 / FiLLiP filing on MCA portal
- Post Incorporation Support
- Certificate of Incorporation + Section 8 License
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OVERVIEW
What is NGO and Types of NGO in India?
NGOs are non-governmental Organizations independently led by groups, individuals, or communities at the national or international level who work for the improvement of society. These entities usually work with a humanitarian goal. In India, you can register your NGO under three structures, which are as follows:
- Trust Registration (The Indian Trust Act, 1882)
- Society Registration (Societies Registration Act, 1860)
- Section 8 Company Registration (The Companies Act, 2013)
Section 8 NGO Company
A Section 8 company is a legal business structure that operates as a non-profit organisation (NPO) or a non-government organization (NGO). Formerly, it was recognised as a "Section 25 company" under the former Indian Companies Act of 1956. With an updated legal key framework, it was renamed as a "Section 8 Company." It is designed for individuals or groups who want to promote commerce, art, science, sports, charity, or social goods. It is mandatory to obtain a license from the central government to start a Section 8 company in India, which allows it to operate legally under specific legal frameworks.
Section 8 vs Trust vs Society
Section 8 vs Trust vs Society: Which NGO Structure is Ideal?
Whether Section 8, trust, or society is ideal depends on the operational scale, funding requirements, and goals. You can choose the NGO structure by analyzing the following comparison:
|
Features |
Section 8 |
Trust |
Society |
|
Governance |
Managed by a Board of Directors |
By Board of Trustees |
By Governing Council |
|
Credibility and Funding |
Due to corporates' strong preference for Corporate Social Responsibility (CSR) grants and foreign funding (FCRA), this structure holds the highest credibility. |
Due to its reliance on personal property or local donations, it faces strict scrutiny from larger institutional donors. |
Ideal for collecting funds via membership fees, but lacks appeal for major corporate investors. |
|
Compliance and Costs |
Expensive and requires strict compliance management, such as annual audits, financial filings, and compliance with MCA. |
Requires a very low setup cost and has less compliance burden. |
Set-up cost is moderate and requires filing annual member lists. |
|
Minimum Members |
2 directors |
2 Trustee |
7 Members |
Eligibility
Eligibility Criteria for Section 8 Registration
To start a non-profit organisation under the Companies Act, 2013, it is necessary to fulfil the specific legal requirements. The major requirements include:
Minimum Shareholders/Members
The minimum number of members for Section 8 depends on whether it is incorporated as a public limited or private limited company. Minimum 2 members are required if the entity is registered as a Private Limited Section 8. In the case of a Public Limited Company, a minimum of 7 members are required.
Minimum Directors
To incorporate a private limited non-profit company, at least 2 directors are required. If incorporated as a public limited company, a minimum of 3 directors must be appointed.
Charitable Objectives
The primary objective must focus on charitable purposes such as education, social welfare, environmental protection, research, art, culture, sports, or other public benefit activities.
Profit Restriction
Profits earned by the company cannot be distributed among members. All income and surplus funds must be utilized solely to promote the organization's stated objectives.
Paid-Up Capital Requirement
There is no minimum paid-up capital requirement for Section 8 Company registration. Founders can begin operations with an amount suitable for their organizational needs.
Non-Resident Indians (NRIs)
NRIs and foreign nationals can become directors in a Section 8 Company, subject to compliance requirements. However, at least one director must qualify as an Indian resident under the Companies Act, 2013.
Advantages
Advantages of Section 8 Company Registration in India
As compared to trusts or societies, the Section 8 companies enjoy distinct legal and financial benefits. Those who aim to promote charitable activities in India can register for Section 8, as it provides multiple benefits.
No Stamp Duty:
Section 8 companies are exempt from stamp duty, which significantly minimizes the financial burden and streamlines the registration process.
CSR Funding Eligibility:
Corporate donors prefer a registered Section 8 company for executing their CSR (Corporate Social Responsibility) initiatives.
Foreign Funding:
These entities can get international donations by registering under the Foreign Contribution Regulation Act (FCRA).
Limited Liability Protection:
The personal assets of designated members and directors are protected from the company's debts or liability beyond their agreed contribution during its formation.
Tax Benefits:
A Section 8 company is a type of non-profit organisation that enjoys significant tax exemptions and financial benefits under the Income Tax Act. Even to raise the funding, the donors can claim tax deductions under Section 80G.
Credibility with International Donors:
Over trusts or societies, the global entities such as the United Nations, international NGO etc, prefer funding Section 8 companies.
Documents Required
Documents Required for NGO Registration in India
✅ PAN Card
✅ Aadhar Card
✅ Voter ID
✅ Identity Proof of the Applicant/directors/members
✅ Proof of Registered Office Address.
✅ Electricity Bill (No More Than 2 Months Old)
✅ Passport-Size Photographs
✅ Dir-2 (Director’s Consent) Along with Address Proof
✅ NOC- No Objection Certificate
✅ Inc-14 Declaration by Professionals
✅ Inc-15 Declaration by Promoters (On Stamp Paper Which Is Duly Notarised)
✅ Affidavit Regarding Deposits
✅ Annual Income Estimate
✅ Memorandum of Association and Articles of Association - MOA & AOA
✅ Personal Details of the Promoters and the Directors
Register
Step-by-Step Section 8 Company Registration Process
For the convenience of applicants, NGO registration under Section 8 company can be done online by following the steps mentioned below.
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Step 3: Filling SPICe+ Form
Our team of experts will fill out a new application for Section 8 NGO company registration.
SPICe+ Part A: At this stage, we will make sure to mention the type of company you want to create, its classification, company category, the main division you will be operating from, and the company’s description, among other information.
SPICe+ Part B: Here our experts will complete the second stage of the SPICe+ form in which we will complete structural information about your company, such as the number of shares, total subscribed shares, total authorized shares capital, etc.
Step 1: Apply for DSC and DIN
All designated partners must obtain the DSC (Digital Signature Certificate) and apply for DIN (Director Identification Number) through the MCA portal.
Step 2: Company Name Reservation
It is no longer required to use the RUN (Reserve Unique Name) for company name reservation. The process can be done through Part A of the SPICe+ web form. However, the selected name must be unique, reflect the real nature of the business, and the name must end with "Foundation," "Forum," "Association," "Federation," "Chambers," "Confederation," or "Council."
Step 3: Draft MoA and AoA
Due to the different nature of the Section 8 company, the Memorandum of Association (MOA), the objects clause must strictly cover special purposes like education, charity, or art.
Step 4: Apply for the INC-12 License
To start the non-profit organisation in India, the Central Government issued a license. For a license, file Form INC-12 alongside the required documents such as MOA, AOA, designated directors' list, and income-expenditure projections (for the next three years). If approved, the license will be issued via Form INC-16 by the Registrar of Companies (ROC).
Step 5: SPICe+ Filing
Our team of experts will fill out a new application for Section 8 NGO company registration.
SPICe+ Part A: At this stage, we will make sure to mention the type of company you want to create, its classification, company category, the main division you will be operating from, and the company’s description, among other information.
SPICe+ Part B: Here, our experts will complete the second stage of the SPICe+ form, in which we will complete structural information about your company, such as the number of shares, total subscribed shares, total authorized shares capital, etc.
Step 6: Certification of Incorporation + PAN + TAN
It may take around 7-10 days to obtain the CIN (company incorporation certificate). This certificate is proof that your NGO now exists legally. PAN and TAN will be issued along with the certificate of incorporation only. Section 8 Company Registration of NGOs is completely online in India.
Step 7: Post-Incorporation
Incorporating a Section 8 company in India is not the final procedure, but the members are further required to stay active with the required compliance. The post-incorporation requirement includes holding the first board meeting, appointing the first auditor, opening a bank account, and complying with tax rules.
Post Incorporation
Post-Incorporation Requirements: Process After NGO Incorporation
The members of Section 8 company are subject to complying with post-registration requirements. These mandatory administrative and legal tasks ensure that your non-profit organisation is in compliance with specific rules and regulations.
🔶 First Board Meeting: It is mandatory to hold the first Board of Directors meeting within 30 days of non-profit company incorporation.
🔶 Appoint First Auditor: The first auditor must be appointed by the Board of Directors within 30 days of registration.
🔶 12A Registration: It is crucial for receiving the lifetime tax-exempt status. Must apply for 12A registration to the Income Tax Department after non-profit company incorporation.
🔶 80G Registration: Required to apply after 12A registration, which allows donors to claim tax deductions on donations.
🔶 FCRA Registration: It allows one to get the foreign contributions/donations, which must be applied to the Ministry of Home Affairs.
🔶 NGO Darpan Registration: This registration is mandatory, done through the NITI Aayog portal. Through it, the non-profit organizations receive the central and state government grants. It allows for establishing credibility, accessing government funding opportunities, and streamlining corporate or international funding.
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Annual Compliance
Annual Compliance Requirements for Section 8 Companies
Not only post-incorporation support, but JustStart also supports annual compliance management. The major annual compliance requirements include:
Director KYC
The designated partners who are holding DIN are required to submit their KYC details by using the DIR-3 web form. As per the new update from the MCA (Ministry of Corporate Affairs), the compliance period is now three years. It must be filed once every three years by June 30.
Income Tax Returns (ITR)
ITR-7 (to claim tax exemptions) or ITR-6 (taxable as regular companies) must be filed by the due date on September 30 of the assessment year. The Income Tax Return (ITR) filing is a compliance requirement. to maintain the exempt status and avoid penalties.
Form 8: Statement of Account and Solvency
Section 8 companies are required to file their annual financial statements (in form AOC-4). It should be filed within 30 days of holding the AGM (Annual General Meeting).
Annual Return Filing
The annual return must be filed within 60 days of holding the Section 8 company's Annual General Meeting (AGM). It must be filed in Form MGT-7/MGT-7A.
All these compliances can be just a one-step process with JustStart's compliance services. Our expert CA/CS manages regulatory and statutory workloads for non-profits.
Why JustStart?
Why Choose JustStart for Section 8 Company Registration?
Applying for Section 8 company registration online might be challenging for those who are not aware of its legal formalities. JustStart is a trusted and highly professional business consultancy firm. Here is why you should choose JustStart for your NGO registration:
Streamline Process
Our professionals ensure the accurate Section 8 company registration from documentation to final approval. It typically includes applying for DSC & DIN, INC-12 filing, drafting of MOA/AOA, name reservation, and notifying of the company incorporation certificate.
Managed by Experts
To avoid errors and unnecessary hurdles, the application filing to the management of documents is overseen by the professionals of JustStart.
Post-Registration Support
The non-profit organisations are subject to strict scrutiny from the MCA and the Income Tax Department. At this stage, JustStart helps to avoid the deadlines related to post-incorporation requirements.
Timeline Commitment
Guarantee to complete the whole registration process within 15 to 20 days with quality work (the exact timeline depends on the regional Central Government license approval phase). Ensure a speedy online registration process for the Section 8 company.
Locations
Section 8 Company in Other States and Cities
LET'S CLEAR ALL THE DOUBTS!
Frequently Asked Questions (FAQs)
A Section 8 NGO is a type of non-governmental organization that operates independently of government control and focuses on addressing social or political issues. These organizations are governed by the Companies Act, 2013, and are set up for promoting arts, commerce, education, charity, or other similar objectives, without a profit motive.
In India, NGOs are categorized into several types. A few of them include:
- National NGOs
- International NGOs
- Community-Based NGOs (CBOs)
- Citywide NGOs
The NGO Registration Process in India involves several steps:
- Define the Objective: Decide the cause your NGO will focus on.
- Name Your NGO: Choose a unique and meaningful name.
- Set Up the Board: Establish a board of directors or governing body.
- Documentation: Prepare necessary documents, including the Memorandum of Association (MoA) and Articles of Association (AoA).
- Incorporation: Complete the section 8 company registration process through the Ministry of Corporate Affairs (MCA) portal.
Yes, the NGO Registration Process in India is entirely online. Applicants need to submit the required documents electronically through the MCA portal.
Not necessarily! With the right guidance, NGO registration can be straightforward. JustStart specializes in NGO registration services in India. Our experts can ensure your paperwork is accurate and complete, making the entire process hassle-free.
No, a single person cannot establish a Section 8 NGO. A minimum of two members is required to form such an organization.
The basic registration process is similar across different types of NGOs. However, Section 8 companies must adhere to additional requirements, such as drafting a constitution and fulfilling specific criteria defined under the Companies Act. International-level NGOs may require more extensive paperwork.
While all NGOs aim to serve society, Section 8 NGOs stand out in the following ways:
- They are governed under the Companies Act, 2013.
- They operate with a well-defined constitution and specific objectives.
- They are not profit-driven and are prohibited from distributing dividends to members.
- Shareholders in a Section 8 NGO are liable for debts only up to a predetermined limit.
No, NGO Darpan registration is not strictly mandatory. But it is practically required if the Section 8 company is intended to receive government grants, as well as to receive foreign contributions (FCRA) or open specific bank accounts. On the other hand, NGO Darpan is an online platform that is managed by NITI Aayog in India.
Both 12A and 80G play different roles and separate application post-incorporation requirements, but are beneficial to a non-profit company. Through 12A registration, the registered non-profit company becomes exempt from paying income tax. Meanwhile, through the 80G registration, donors get approval to claim the tax deductions for their contribution to the NGOs.
Yes, the foreign nationals are eligible to be a part of the Section 8 company as directors. The foreign national must hold a valid DIN and visa. In the case of land border countries, it is mandatory to get security clearance approval from the Ministry of Home Affairs (MHA).
