How to register section 8 company in india

How to register section 8 company in india

NGO (Non-Government Organisation) is an organization that works for non-profit/ charitable purposes. An NGO established as Section 8 company under the Companies Act, 2013 (‘Act’) is governed by the Ministry of Corporate Affairs (‘MCA’) whereas the NGO registered as a trust or society is governed by the registrar of state under the State Government.

Section 8 company incorporation has more benefits in comparison to trust and society. This type of company has more credibility among government departments, donors, and other stakeholders. In this article, we will explain how to register as an NGO in the form of Section 8 Company, under the Companies Act, 2013.

Laws in India applicable to an NGO

NGOs can be registered in India under any of the following laws: 

  • Trust under Indian Trusts Act, 1882
  • Society under Societies Registration Act, 1860
  • Section 8 Company under Companies Act, 2013

Purpose of NGO – Section 8 Company Incorporation

The main purpose of establishing a  company as a Section 8 company is to promote non-profit objectives such as the following:

  • Commerce
  •  Art 
  • Science 
  • Sports 
  • Education 
  • Research 
  • Social welfare 
  • Religion 
  • Charity 
  • Protection of environment 
  • Any such other object related to the above objects

When the Central Government is satisfied that a person or association of persons propose to establish a limited company having the above-mentioned objectives, it shall grant a license to register as a Section 8 company under the Companies Act, 2013 (‘Act’). 

The profits/incomes of the Section 8 company, if any, are applied towards promoting the objectives of the company and are not distributed as dividends to its shareholders.

Section 8 Company Incorporation Eligibility

  • An Individual, HUF is eligible to start a Section 8 company in India.
  • Two or more persons who will act as Directors or shareholders should fulfil all the compliances and requirements of the Section 8 company incorporation under the Act.
  • There must be at least one director who should be a resident of India in the Section 8 company. 
  • The objective must be one or more of the following – promotion of sports, social welfare, the advancement of science and art, education and financial assistance to lower-income groups.
  • Founders, directors, members directors of the company cannot draw any remuneration in any form of cash or kind.
  • No profit should be distributed among the members and directors of the company directly or indirectly.


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