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The price for registration in Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh and Telangana is different. Kindly consult us before making payment.
Registering a Section 8 Company is quick, easy, and can be done online with ngoministry.com in 3 simple steps.
We help you obtain digital signature certificate.
We draft and file the documents required for registration (MoA, AoA & Declarations.).
We follow up with Registrar of Companies.
NGOs can be registered in India in 3 forms in India i.e. Trust, Society or Section 8 Company. Section 8 Company is the most preferred form.
A Section 8 company under the Companies Act, 2013 or a Section 25 Company as per the Companies Act, 1956 is a non-profit organization registered for charitable and/or religious purposes. The Government grants these companies an exclusive license under the Section 8 Companies Act. The three main conditions for granting the license are:
The company should be formed for a charitable and/or religious purpose.
Income and surplus should be used for these purposes.
The company should not pay any dividends to its members.
Please check the differences among Trust, Society & Section 8 Company Here.
As defined under the Companies Act 2013, we have to ensure the requirements of the following checklist:
It must have at least 2 directors and at most 15 directors. Among all the directors in the company, at least one must be a resident of India.
The name of your business must be unique. The suggested name should not match any existing companies or trademarks in India. The name must have the words "Foundation, Forum, Federation, Association or Council". The name would not include the words Private Limited or Limited.
Companies under Section 8 can be registered in two ways. One is "limited by shares," which has a share capital. However, there is no minimum capital limit. It can be registered with a share capital of as little as ₹10. The other is "limited by guarantee," which has no share capital. The main difference between the two is that in a company limited by shares, the voting rights of the members can be unequal, such as 60:40, or in any other ratio of their choice. While a company limited by guarantee is democratic in a way and each member has the right to one vote, it is noteworthy that in a company limited by shares, members cannot be issued shares in physical form. Rather, the shares must necessarily be issued in demat form, for which the company needs to obtain a demat facility and has to spend approximately thirty to forty thousand rupees on the depository and RTA.
The registered office does not have to be a commercial space. Even a rented home can be the registered office.
Following documents are required for all the directors/shareholders/members of a Section 8 Company:
Scanned copy of PAN Card. Foreign nationals must provide a valid passport (Shareholders and Directors);
Scanned copy of Voter’s ID/ Passport/ Driver’s License/ Aadhar (Shareholders and Directors);
Scanned copy of the latest bank statement or telephone, mobile bill or electricity bill (Shareholders and Directors);
Latest Passport-size colour photograph of all the promoters (Shareholders and Directors).
For foreign nationals, apostilled and/or notarized copies of the documents has to be submitted mandatorily. All documents submitted should be valid. The address proof documents latest bank statement, telephone, mobile bill or electricity bill must be less than 2 months old.
Latest & Clear Telephone bill/Electricity bill/Water bill or Gas bill of the registered office address
No Objection Certificate from the owner(s) of the premises of the registered office or rent agreement.
Note: Your registered office need not be a commercial space; it can be your residence too.
Digital signatures of 2 directors / members
Director Identificaiton Numbers (DIN) of 2 directors
Memorandum of Association
Articles of Association
Certificate of incorporation (Registration certificate)
Section 8 License
PAN & TAN
Donation receipt format
Membership application form format
Membership certificate format
Activity report format
Training notes
Cash book
A Section 8 Company is a company incorporated under the Companies Act, 2013 for promoting charitable or other socially beneficial objects. Its objects may include promotion of:
The company must apply its profits and income towards its objects and cannot distribute dividends to its members.
Section 8 Companies are primarily governed by the Companies Act, 2013, particularly Section 8 and the Companies (Incorporation) Rules, 2014.
All three structures can be used for charitable/social purposes, but they differ in their legal framework and administration.
| Particulars | Section 8 Company | Trust | Society |
| Governing Laws | Companies Act, 2013 | Applicable trust law | Societies Registration Act /State Laws |
| Registration Authority | Registrar of Companies | Sub-Registrar of the District | Registrar of Societies |
| Management | Board of Directors | Trustees | Governing body |
| Separate legal entity | Yes | Depends on structure/law | Yes |
Statutory compliance
| Relatively extensive | Generally lower | Moderate |
| Corporate structure | Yes | No | No |
The appropriate structure depends upon the proposed activities, governance requirements, funding plans and long-term objectives.
A Section 8 Company can generally be incorporated by:
The subscribers/promoters must satisfy the applicable requirements under the Companies Act and incorporation rules.
For a private Section 8 Company, generally at least 2 subscribers/members and 2 directors are required.
For a public Section 8 Company, generally at least 7 subscribers/members and 3 directors are required.
A Section 8 Company must also satisfy the applicable requirements regarding directors and registered office.
There is no prescribed minimum paid-up capital requirement for incorporating a Section 8 Company.
The subscribers may contribute such share capital as is appropriate for the proposed activities and structure.
Yes. A Section 8 Company can earn income and generate surplus from its activities.
However, the surplus must be utilised towards achieving its charitable/non-profit objects. It cannot be distributed among members by way of dividends.
No. The fundamental principle of a Section 8 Company is that its income and profits must be applied towards its stated objects.
Members cannot receive dividends merely because they are members/shareholders of the company.
A director may receive remuneration where permitted under the Companies Act and applicable rules, subject to prescribed conditions, approvals and disclosures.
Payment must represent legitimate remuneration for services and should not amount to distribution of profits to members.
Commonly required documents include:
For subscribers/directors:
For registered office:
Additional documents may be required depending upon the proposed objects and circumstances of the promoters.
The Memorandum of Association (MOA) is particularly important because it sets out the company's charitable/non-profit objects.
The Articles of Association (AOA) establish the rules for management and governance of the company.
The objects should be drafted carefully because the company is expected to operate in accordance with its approved objects.
Yes. A Section 8 Company may have several objects, provided they fall within the permissible objects contemplated under Section 8 and are properly drafted.
For example, a company may have objects relating to education + healthcare + environmental protection + skill development + social welfare.
However, objects should be properly connected and sufficiently specific to avoid unnecessary compliance or interpretation issues.
Yes, subject to the applicable provisions of the Companies Act, 2013 and the required corporate approvals and filings.
Because the objects are fundamental to the company's Section 8 status, any alteration should be undertaken carefully.
Yes. Section 8 status requires the company to satisfy the conditions prescribed under the Companies Act. The incorporation process through the MCA's prescribed forms incorporates the applicable process for obtaining the Section 8 licence/approval.
Broadly, the process involves:-
The exact MCA forms and filing process may change from time to time.
The time depends upon:
Therefore, a fixed number of days should not be promised without considering the particular case.
Foreign nationals may participate subject to applicable provisions of the Companies Act, FEMA, immigration/residency requirements and other applicable laws.
Additional documentation and compliance may be required for foreign subscribers/directors.
A Section 8 Company may receive foreign contributions only if it complies with the Foreign Contribution (Regulation) Act, 2010 (FCRA) and obtains the required registration/prior permission, as applicable.
Incorporation as a Section 8 Company does not automatically give the organisation permission to receive foreign contributions.
Yes, subject to compliance with the Companies Act, 2013 and applicable CSR Rules.
Where applicable, the organisation may need to obtain CSR-1 registration and satisfy the eligibility requirements for undertaking CSR activities.
No.
Incorporation as a Section 8 Company and registration under the Income-tax Act are separate matters.
A Section 8 Company may separately apply for applicable 12AB registration to obtain the relevant income-tax exemption, subject to satisfying the conditions under the Income-tax Act.
No.
Section 8 status does not automatically provide 80G approval.
The company must separately apply for the applicable 80G approval/registration under the Income-tax Act and satisfy the prescribed conditions.
Yes, a Section 8 Company can receive donations subject to applicable laws.
However, without the applicable 80G approval, the donor may not receive the corresponding 80G tax deduction merely because the recipient is a Section 8 Company.
Not merely because it is a Section 8 Company.
GST registration depends upon the nature of activities, taxable supplies, turnover and other applicable provisions of the GST law.
Certain charitable activities may also receive specific GST treatment/exemptions, subject to the applicable conditions.
A Section 8 Company may undertake activities that generate income, provided they are consistent with its objects and the income is applied towards its permitted objectives.
It cannot be operated as a conventional profit-distribution business for the benefit of its members.
Yes. A Section 8 Company, being a separate legal entity, can generally acquire, hold, lease and dispose of property subject to its constitutional documents and applicable laws.
Yes. After incorporation, the company can open a bank account in its name and operate it in accordance with its constitutional documents and banking/KYC requirements.
Yes, subject to the Companies Act, its constitutional documents and applicable restrictions.
Borrowings should be connected with the legitimate activities and financial requirements of the organisation.
Yes.
A Section 8 Company is required to comply with applicable corporate and statutory requirements, which may include:
The exact compliance depends on the company's activities and registrations.
Yes. A Section 8 Company is generally required to comply with the provisions relating to statutory audit under the Companies Act, 2013.
Conversion is possible in certain circumstances, but it is subject to the Companies Act, applicable rules, approvals and conditions.
The consequences for assets, tax exemptions, grants and donations should be considered before undertaking such conversion.
Yes. A Section 8 Company can be wound up/closed in accordance with the applicable provisions of the Companies Act and rules.
Its remaining assets cannot simply be distributed among members as personal profits. The applicable statutory requirements concerning disposal of assets must be followed.
Some important advantages are:
The major consideration is compliance.
A Section 8 Company is subject to corporate governance, accounting, audit, ROC filing and other statutory requirements. It therefore requires continuing professional and statutory compliance.
Yes, a Section 8 Company incorporated as a company limited by shares can have share capital.
However, the shares do not give members a right to receive dividends from the company's profits.
Generally, no for a standard Section 8 private company because the minimum number of directors applicable to a private company is two.
A Section 8 public company generally requires at least three directors.
The feasibility depends upon the legal status and documents of the proposed member and the applicable incorporation requirements. An existing legal entity may, subject to applicable law and its own constitutional documents, participate in the incorporation.
Before incorporation, promoters should decide:
