NGOs can be registered in India in 3 forms in India i.e. Trust, Society or Section 8 Company. Section 8 Company is the most preferred form. 

Section 8 Company - An Overview

A Section 8 company under the Companies Act, 2013 or a Section 25 Company as per the Companies Act, 1956 is a non-profit organization registered for charitable and/or religious purposes. The Government grants these companies an exclusive license under the Section 8 Companies Act. The three main conditions for granting the license are:

1. ✅The company should be formed for a charitable and/or religious purpose.

2. ✅Income and surplus should be used for these purposes.

3. ✅The company should not pay any dividends to its members.

What Gives Edge to Section 8 Company Over Trust and Society

Please check the differences among Trust, Society & Section 8 Company on our home page.

Checklist for Registering a Section 8 Company in India

As defined under the Companies Act 2013, we have to ensure the requirements of the following checklist:

Two Directors

It must have at least 2 directors and at most 15 directors. Among all the directors in the company, at least one must be a resident of India. 

Unique Name

The name of your business must be unique. The suggested name should not match any existing companies or trademarks in India. The name must have the words "Foundation, Forum, Federation, Association or Council". The name would not include the words Private Limited or Limited.

Minimum Capital Contribution

Companies under Section 8 can be registered in two ways. One is "limited by shares," which has a share capital. However, there is no minimum capital limit. It can be registered with a share capital of as little as ₹10. The other is "limited by guarantee," which has no share capital. The main difference between the two is that in a company limited by shares, the voting rights of the members can be unequal, such as 60:40, or in any other ratio of their choice. While a company limited by guarantee is democratic in a way and each member has the right to one vote, it is noteworthy that in a company limited by shares, members cannot be issued shares in physical form. Rather, the shares must necessarily be issued in demat form, for which the company needs to obtain a demat facility and has to spend approximately thirty to forty thousand rupees on the depository and RTA.

Registered Office

The registered office does not have to be a commercial space. Even a rented home can be the registered office. 

Documents Required for Section 8 Company Registration

Following documents are required for all the directors/shareholders/members of a Section 8 Company:

Identity and Address Proof

• ✅Scanned copy of PAN Card. Foreign nationals must provide a valid passport (Shareholders and Directors);

• ✅Scanned copy of Voter’s ID/ Passport/ Driver’s License/ Aadhar (Shareholders and Directors);

• ✅Scanned copy of the latest bank statement or telephone, mobile bill or electricity bill (Shareholders and Directors);

• ✅Latest Passport-size colour photograph of all the promoters (Shareholders and Directors).

For foreign nationals, apostilled and/or notarized copies of the documents has to be submitted mandatorily. All documents submitted should be valid. The address proof documents latest bank statement, telephone, mobile bill or electricity bill must be less than 2 months old.

Registered Office Proof

• ✅Latest & Clear Telephone bill/Electricity bill/Water bill or Gas bill of the registered office address

• ✅No Objection Certificate from the owner(s) of the premises of the registered office or rent agreement.

Note: Your registered office need not be a commercial space; it can be your residence too.