NGO or Section 8 Company Registration

What is a Section 8 Company?

A Non-Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, protection of environment or similar areas in India, an NGO can be registered as any of the three structures that is a Company under Section 8 of the Companies Act, as a Trust or as a Society. Section 8 Company format of an NGO is quite popular in India.

What are the basic features of a section 8 company?

A section 8 company works for the common welfare of masses on a large scale for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object. The objective of the section 8 company is not to earn profit. If any profit is earned during course of its operation, the same is not to be shared among owners/members but should be utilised for attaining the objects for which NGO was formed. The profits, if any, or other income is used towards promotion of the specific objects of the NGO. Moreover, there is restriction on declaration of profits as dividend to members.

What are the basic requirements to form a Section 8 Company?

1.At least two shareholders should be there

2.At least two Directors should be there

3.At least one Director should be residing in India

4.No Minimum capital required

5.Income-tax PAN is a mandatory requirement in case of Indian nationals

6.Any Identity Proof or Passport is mandatory requirement for proof of identity in case of foreign nationals

7.A Proof of Residence is also required

8.If the office space is rented, then the rent agreement of the registered office is required, else Ownership proof is supposedto be attached

9.No objection certificate from the owner is required

How many members are required, in order to form a Section 8 Company?

Minimum 2 members are required to form a Section 8 Company.

Is it required to add Private or Public limited at the end of the name of Section 8 Company?

No, Companies registered under this section are prohibited to add Private or Public Limited at the end of their name.

Can a Company registered under this section have its MOA & AOA just like any other Private or Public Limited Company?

Companies registered under this section shall not alter the provisions of its memorandum or articles, except with the previous approval of the Central Government.