What is NGO or Section 8 Company?
NGO (Non-Government Organization) is an organization that works for non-profit/ charitable purposes. An NGO established as Section 8 company under the Companies Act, 2013 (‘Act’) is governed by the Ministry of Corporate Affairs (‘MCA’) whereas the NGO registered as a trust or society is governed by the registrar of state under the State Government
Type of NGO registration
NGOs can be registered in India under any of the following laws:
· Trust under Indian Trusts Act, 1882
· Society under Societies Registration Act, 1860
· Section 8 of Companies Act, 2013
Minimum Requirements for NGO registration
- An Individual, HUF is eligible to start a Section 8 company in India.
- Minimum 2 director for incorporation of section 8 company as Private limited company
- Minimum 3 director for incorporation of section 8 company as Public limited company
- At least One director should be resident of India
- Registered office address
- The objective of the company should be for a charitable or social purpose
- The Profit earned cannot be shared among shareholders
Document required for NGO registration
For Directors/Shareholders, the company registration documents are as follows:
- Copy of PAN Card
- Copy of Aadhar Card
- Identity Proof (Voter Card, Passport, Driving License)
- Address Proof (Bank Statement, Mobile bill, Telephone bill, Electricity Bill)
- Passport Size Photo of the director
NGO or Section 8 Company registration Benefits
There are many advantages of registering an NGO under Section 8 of the Companies Act, 2013, which are as follows:
- No minimum capital:
- Separate Legal Identity:
- Tax Exemptions
- No Stamp Duty is Requires
- Easily Gathering Donations
Annual Compliances of Section 8 Company
The annual compliances of section 8 company are just like the other companies.
- Conduct a minimum of two board meetings in a year
- Maintenance of Books of Accounts
- Preparation of financial statements
- Mandatory audit report
- Income tax return filing
- Filing of financial statements in form AOC 4
- An annual return is to be filed every year with other e- filing forms like MGT 7
- Additional compliances to fulfil the registration like 12AA, 80G, etc
Section 8 Company Registration fees
Basic Plan | INR |
DSC (up to 2 Director) | 2000 |
DIN (up to 2 Director) | 1000 |
Professional Fees | 5999 |
Stamp Duty (As Per State) | XXXX |