Description

Section 8 Company (NGO): For Social Impact and Non-Profit Initiatives

NGO stands for Non-Governmental Organization, a voluntary group or institution that works independently from the government, aiming to serve the public and address various social, environmental, educational, or humanitarian issues. In India, NGOs operating as companies are registered as Section 8 Companies under the Companies Act, 2013.

These entities are formed not for profit, but with the primary objective of promoting causes such as education, art, science, sports, healthcare, environment, social welfare, and more. Any income or profit generated is strictly used for furthering the company’s objectives, without being distributed among its members.

Objectives of a Section 8 Company

The primary goal of a Section 8 Company is to promote:

• Arts, culture, and heritage
• Commerce and trade development
• Environmental protection
• Sports and physical education
• Scientific and technological advancement
• Public health and medical care
• Education and literacy
• Social welfare and charity
• Religious or spiritual development

Such organizations play a crucial role in societal development by filling the gaps left by public systems.

Advantages of a Section 8 Company

✅ Legal Status and Recognition

• Registered under the Companies Act, 2013, Section 8 Companies are recognized legal entities and enjoy higher credibility among donors and government agencies.

✅ Tax Benefits

• Eligible for tax exemptions under Section 12A and 80G of the Income Tax Act, helping donors and the organization benefit financially.

✅ Limited Liability

• Members have limited liability, meaning their personal assets are protected in case of company debts or legal liabilities.

✅ No Minimum Capital Requirement

• Unlike other companies, Section 8 Companies do not require a minimum paid-up capital, making them accessible for social entrepreneurs.

✅ Separate Legal Entity

• A Section 8 Company has a separate legal identity from its founders, allowing it to enter contracts, own assets, and sue or be sued in its own name.

Eligibility for Incorporation

To register a Section 8 Company in India, the following conditions must be met:

• Minimum of two persons (individuals or legal entities) over 18 years of age.
• At least one director must be an Indian citizen and resident.
• Intent to apply income solely for promoting charitable objectives.
• The company must prohibit distribution of dividends to its members.

Comparison Clarification: Section 8 Company vs. Section 8 Housing (U.S.)

It’s important not to confuse India’s Section 8 Company under the Companies Act with the Section 8 Housing Program in the United States. While the U.S. Section 8 housing program offers rental assistance to low-income families, India’s Section 8 Company framework is about non-profit organization registration for public benefit activities.

Start Your NGO with GST Suvidha Centre

Starting a Section 8 Company can be complex due to compliance with regulatory and tax requirements. At GST Suvidha Centre, we simplify the process and help you with:

• Name approval from MCA
• Drafting of MoA & AoA with NGO objectives
• Filing of SPICe+ form for incorporation
• Assistance with PAN, TAN, and NGO registration
• Guidance on 80G & 12A tax exemption filing

💼 Ready to Serve Society? Start Your NGO Today!

Let our experts guide you through the seamless registration and compliance process.
📞 Visit your nearest GST Suvidha Centre or book an online consultation now.

 

 

Required Documents

  Passport size photographs of all subscriber and Directors

  Aadhar card self-certified copy of all subscriber and Directors

  Pan card self-certified copy of all subscriber and Directors

  Any of Identity proof Driving License/ Passport/ Voter ID of all subscriber and Directors (self-certified)

  Any of Residence Proof Electricity bill/ Mobile Bill/ Telephone Bill/ Bank statement of all subscriber and Directors (self-certified and not more than two (2) months old)

  Registered office utility bill proof attach any of bill Gas Bill

  Electricity bill

  water bill (not more than two (2) months old)

  Memorandum of Association

  Articles of Association

  Details of Director (When the Members Are Other Companies/LLPs)

  Director Identification Number.