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Section 8 Company

A NGO or Non Profit Organisation is an entity that operates for promotion of art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.

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Section 8 Company

In India, an NGO can be registered as any of the three structures being Company under Section 8 of the Companies Act, 2013 (section 25, companies act 1956), Trust or Society.
Section 8 Company format of a NGO is most popular form of NGO in India. It is easy to register, run or manage a Section 8 Company in comparison of a Trust and a Society.

key features

Object: *It operates for common welfare of masses at large, for promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object.
Profit Earning: *The objective 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 rather utilised for attaining the objects for which NGO was formed.
Utilisation of funds and earnings: *The profits, if any, or other income is used towards promoting of specific objects of NGO. Further there is restriction on declaration of profits as dividend to members.

Minimum requirements to start a section 8 company

Minimum two shareholders;
Minimum two Directors (Directors and shareholders can be same person);
At least one Director shall be resident in India;
No Minimum capital required;
Income-tax PAN is a mandatory requirement in case of Indian nationals;
Any one of the Identity Proof (Voter ID/Aadhar Card/Driving License/Passport); Passport is mandatory requirement for proof of identity in case of foreign nationals;
Any one Proof of Residence (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement);
Registered Office address proof (rent agreement along with latest rent receipt and copy of latest utility bill in the name of landlord and a no objection certificate from the owner of the premises, in case the premises are rented); In case the premises are owned by a Director and Promoters, any documents establishing the ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.

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