Section 8 Company(NGO)


    Section 8 Company Registration

    Check out details with the procedure for registration of section 8 with companies Act, 2013
    The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.
    To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company.
    In India, a non-profit organization can be registered under the Registrar of societies or as a Non-profit company under the Section 8 Company of the Company Act,2013.
    The profits of this company, if there are any, are applied towards promoting the objectives of the company and not distributed as dividends to its shareholders.
    A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.

    Features and Advantages of Various Business Entities

    Features Proprietorship Partnership LLP Company
    Definition Unregistered type of business entity managed by one single person A formal agreement between two or more parties to manage and operate a business A Limited Liability Partnership is a hybrid combination having features similar to a partnership firm and liabilities similar to a company. Registered type of entity with limited liability to the owners and shareholders
    Ownership
    • Sole Ownership
    • Min 2 Partners
    • Max 50 Partners
    • Designated Partners
    • Min 2 Directors
    • Min 2 Shareholders
    • Max 15 Directors
    • Max 200 Shareholders

    For One Person Company

    • 1 Director
    • 1 Nominee Director
    Registration Time 7-9 working days
    Promoter Liability Unlimited Liability Limited Liability
    Documentation
    • MSME
    • GST Registration
    • Partnership Deed
    • LLP Deed
    • Incorporation Certificate
    • MOA
    • AOA
    • Incorporation Certificate
    Governance Under Partnership Act Under Companies Act 2013
    Transferability Non Transferable Transferable if registered under ROF Transferable
    Compliance Requirements
    • Income tax filing if turnover is more than Rs.2.5 lakhs
    • ITR 5
    • Form 11
    • Form 8
    • ITR 5
    • ITR 6
    • MCA filing
    • Auditor’s appointment