Section 8 NGO Company(Non-Profit)
Establish a credible non-profit entity to drive social change with **tax exemptions** and **limited liability**.
Overview
A Section 8 Company is a **Non-Profit Organisation (NGO)** registered under the Companies Act, 2013. It is formed to promote charitable causes like education, arts, or social welfare. It must use any profits exclusively for these objectives and **cannot distribute dividends** to its members. It is highly credible and eligible for tax benefits (like registration under Sections 12A and 80G of the Income Tax Act).
Key Benefits
Many privileges and exemptions are granted under Company Law
Exemption from the requirement of Minimum Paid-up capital
Exemption from Stamp Duty for registration
Non-application of Companies Auditor's Report Order (CARO) is often available
A registered partnership firm can be a member in its own capacity
Tax deductions for donors to the company under section 80G of the Income Tax Act
Prerequisites
Members/Shareholders: Minimum 2 for a private limited Section 8 company and 7 for a public limited Section 8 company
Directors: Minimum 2 for a private structure and 3 for a public structure
The directors and members can be the same people
Address proof for the proposed office is required
Other normal documents for directors (PAN, ID, Address proof) are the same as for a private limited company
What You'll Receive
Director Identification Number (DIN) for directors
Digital Signature Certificate (DSC) for promoters
Company name approval
MOA (Memorandum of Association) & AOA (Articles of Association)
Incorporation certificate
Company PAN Card
Company TAN/TDS Number
Bank account opening document support
Frequently Asked Questions
You need to arrange very simple documents for the directors, such as a photograph, PAN card, and an address proof.
No, commercial office space is not required. You can use a residential or rented home address as the registered office address.
The ROC is the Government office responsible for registering companies and LLPs in India.
No. The incorporation process is done online.
No. Once the company is formed, the registration is valid until it is officially closed down. However, annual compliance filings are mandatory.
Director Identification Number (DIN) is a unique identification number required for a person to become a director of a company.
A Digital Signature Certificate (DSC) is an electronic signature used for signing the electronic forms filed with the ROC.
The company name must be unique. For a Section 8 company, the name must include a word like 'Foundation,' 'Federation,' 'Association,' or 'Council,' and it is prohibited from using 'Private Limited' or 'Limited.'
MOA (Memorandum of Association) and AOA (Articles of Association) are the legal documents that define the company's charitable objectives and its internal rules.
Yes, the registered office address can be changed anytime after incorporation by following the proper procedure.
Section 8 companies do not have a minimum capital requirement. They are typically formed as companies limited by guarantee, where members contribute funds in the form of subscriptions or donations rather than share capital.
No. Any initial funds or subscriptions are deposited after the company is registered and its bank account is opened.
No. A Section 8 Company is formed to promote non-profit objectives and can be started from scratch without any prior activity or turnover.
There is no automatic applicability. Laws for Provident Fund (PF) and GST apply based on specific criteria like employee count, turnover from any commercial activities, etc., and not on the type of company.
Yes, after taking approval from the ROC.
No. The profit or income of a non-profit company can only be used for promoting the charitable work for which it is involved. The declaration of dividends or distribution of profit to its promoters is not allowed.