section 8 company (ngo)
Section 8 Company (NGO) – An Overview
A Section 8 Company is a type of non-profit organization formed under Section 8 of the Companies Act, 2013. Its main objective is to promote charitable activities such as education, science, sports, art, culture, environmental protection, social welfare, and more. Unlike other companies, a Section 8 company does not distribute profits to its members. Instead, it reinvests the earnings to achieve its primary objectives.
These companies are granted a license by the Ministry of Corporate Affairs (MCA) and are governed by the Central Government, making them more credible and transparent than trusts or societies which are regulated by state governments.
Unlike Private Limited or Public Limited companies, Section 8 companies are not required to use the suffix “Pvt. Ltd.” or “Ltd.” in their names.
Advantages of a Section 8 Company
Tax Exemption
Section 8 companies enjoy multiple tax benefits and deductions under the Income Tax Act, especially Sections 12AA and 80G. They also benefit from reduced stamp duty and exemption from certain compliances.
No Minimum Capital Requirement
There is no minimum capital requirement to start a Section 8 company, offering flexibility in raising funds through donations, subscriptions, or grants.
Credibility and Recognition
As they are registered under the Companies Act, they are more credible and transparent compared to trusts or societies. This makes them more appealing to donors, institutions, and government authorities.
Separate Legal Entity
A Section 8 Company enjoys a separate legal status, which allows it to own property, sue or be sued independently of its members.
Zero Stamp Duty
Unlike other company types, Section 8 companies are exempt from paying stamp duty on the Memorandum and Articles of Association during incorporation.
Easy Transfer of Ownership
Members of Section 8 companies can easily transfer their ownership or membership without restrictions.
Lesser Compliance
Section 8 companies are exempt from many procedural compliances under the Companies Act, making their legal maintenance easier.
Documents Required for Section 8 Company Registration
wo Proposed Company Names
Main Objectives of the Company
Identity Proof: Aadhaar Card, Passport, Voter ID, or Driving License (for all Directors)
Address Proof: Latest Electricity Bill / Bank Statement / Postpaid Mobile Bill
Passport Size Photographs
Email ID and Mobile Number of Directors
Educational Qualifications of Directors
Details of Shareholding
Registered Office Proof:
Rent Agreement or NOC from the owner (if rented)
Property papers (if owned)
Utility Bill (not older than 2 months)
Get in Touch
Let us know how we can support your business goals.
Get Started!
Enter your details below for a callback
Frequently Asked
Questions
Find answers to some of the most common questions about our services. If you don’t see what you’re looking for, feel free to reach out to us.