Section 8 NGOs operate as companies but with a non-profit motive. They can be formed by individuals or groups who wish to work towards social causes while maintaining a structured organizational framework. These companies can be limited by shares or guarantee and must comply with provisions of the Companies Act, including maintaining proper accounts, conducting board meetings, and filing annual returns.
The registration process is slightly more detailed compared to other NGO structures like Trust or Society. It involves name approval, obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DIN), drafting of MOA and AOA, and applying for a license under Section 8. The Registrar of Companies (ROC) carefully examines the application to ensure that the objectives are genuinely charitable and that no profit distribution will take place.
Once approved, the company is issued a Certificate of Incorporation along with a Section 8 license. The organization can then open a bank account, receive donations, and apply for additional registrations such as NGO Darpan, 12A, and 80G for tax benefits. Section 8 NGOs are considered highly reliable and are ideal for long-term social impact projects.
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013.
No, profits must be used only for charitable objectives.
No, there is no minimum capital requirement.
Yes, they can apply for 12A and 80G registration.