NGO / Section 8 Company Registration — Non-Profit Incorporated in 15–20 Days

A Section 8 Company is a non-profit organization registered under Section 8 of the Companies Act, 2013 (formerly Section 25). It is the most credible NGO structure in India because: (1) Regulated by MCA — same as Pvt Ltd companies; (2) Has a separate legal identity; (3) Pan-India jurisdiction without state re-registration; (4) Most preferred by corporates for CSR funds; (5) Cannot distribute profits to directors or members. A Trust is governed by state-level Trust Acts (state-specific). A Society is governed by the Societies Registration Act, 1860 (also state-specific). Section 8 is generally preferred for its national credibility and CSR eligibility.

Section 8 Companies must operate for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or protection of the environment. Common examples: education and skill development, healthcare services, women empowerment, child welfare, rural development, environment conservation, disability support, arts and culture promotion, poverty alleviation, and sports promotion. Our legal team helps frame your specific mission into legally valid charitable objects for MCA approval.

Requirements: (1) Minimum 2 directors — at least one must be an Indian resident; (2) Clear charitable objects aligned with Section 8 categories; (3) Unique company name (must end in 'Foundation', 'Association', 'Forum', 'Federation', 'Chambers', 'Confederation', or 'Council'); (4) Registered office address in India; (5) No minimum capital requirement; (6) Commitment that profits/surplus will only be used for charitable purposes — no distribution to members.

The complete registration takes 15–20 working days: Name approval (1–2 days) → DSC & DIN (2–3 days) → MOA/AOA drafting + Section 8 license application to MCA (3–5 days) → MCA review and approval of charitable objects (7–10 days) → Certificate of Incorporation issued. The additional time vs a regular company is due to MCA's review of the charitable objects and license grant.

12A registration under the Income Tax Act exempts the Section 8 Company from paying income tax on its surplus/income (as long as it is used for charitable purposes). Without 12A, your organization pays 30% tax on any surplus. With 12A, the surplus is tax-free. This is critical for maximizing the funds available for your charitable mission. 12A registration is applied after incorporating the Section 8 Company — our Complete plan includes the 12A application.

80G registration allows donors to claim a 50% tax deduction on donations made to your Section 8 Company. For example, if a donor gives ₹1 lakh to your organization, they can claim a ₹50,000 deduction from their taxable income. This makes your organization far more attractive to individual and corporate donors. 80G is applied after 12A is granted. Our Complete plan includes 80G application guidance.

Yes — in fact, Section 8 Companies are the most preferred vehicle for receiving CSR (Corporate Social Responsibility) funds from large companies. Under Section 135 of the Companies Act, companies with ₹500 crore turnover or ₹5 crore net profit must spend 2% of average net profits on CSR. To receive these funds, your Section 8 Company must: be at least 3 years old, have a valid 80G registration, and be listed on the CSR portal. Our Complete plan includes CSR eligibility assessment.

FCRA (Foreign Contribution Regulation Act) registration is required if your Section 8 Company wants to receive donations or grants from foreign citizens, organizations, or governments. Without FCRA, you cannot legally accept foreign contributions. FCRA is applied to the Ministry of Home Affairs after at least 3 years of the company's existence and a track record of activities. Our Complete plan includes FCRA eligibility guidance and pre-application consultation.

Yes — directors and employees of a Section 8 Company can receive a reasonable salary or remuneration for services rendered, as long as it is approved by the Board and reflects market rates. However, no dividend, profit share, or bonus can be paid to directors in their capacity as members. The restriction is on profit distribution — not on reasonable compensation for actual work done.

Section 8 Companies must comply with: (1) Annual Return (MGT-7) — filed within 60 days of AGM; (2) Financial Statements (AOC-4) — filed within 30 days of AGM; (3) Mandatory audit (regardless of turnover — even from day one); (4) Annual General Meeting (AGM); (5) Income Tax Return (ITR-7 for Section 8 companies); (6) Annual 12A & 80G renewal (now done on a 5-year basis under new rules). Compliance is similar to a regular company — our CA team offers annual compliance packages.

A Section 8 Company's name must end with one of these words: Foundation, Forum, Association, Federation, Chambers, Confederation, or Council. The name must reflect the charitable nature of the organization. Examples: 'Rewa Education Foundation', 'India Environment Council', 'Women Empowerment Association'. Unlike a Pvt Ltd company, Section 8 companies do not use 'Private Limited' or 'Limited' in their name.