Formation of Section 8 Company(NGO)

Formation of Section 8 Company (NGO)

A Formation of Section 8 company under the Companies Act, 2013 or a Section 25 Company as per the Companies Act,1956 is an organization registered with an objective of promoting the fine arts, science, literature, or knowledge sharing for a purposeful matter or for charity. These are the limited companies established under the Companies Act. The Government grants these companies an exclusive license under Section 8 Companies Act. There are three main conditions for granting the license is

  • The company should form for the charitable purpose.
  • Income and profits should be used towards these objects.
  • The company should not pay any dividend to its members.


Section 8 Company or a Non-Profit organisation (NPO) is a Company established for promoting commerce, art, science, religion, sports, education, research activities, charity or any other useful social object, provided the profits and donations is applied for promoting only the objects of the company and no dividend is paid to its members or owners.

The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefitted out of those profits.

  • Many privileges and exemptions are available to section 8 company under Company Law
  • Non-application of Companies Auditor’s Report Order (CARO)
  • Exemption from requirement of Minimum Paid-up capital
  • Registered partnership firm can be a member in its own capacity
  • Exemption of Stamp duty for registration
  • Tax deductions to the donors of the Company u/s. 80G of the Income Tax


  • Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)
  • DIN (Director Identification Number) for all the Directors
  • Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
  • DSC (Digital Signature Certificate) for all of the Directors
  • The directors and shareholders can be same person
  •  Address proof for proposed office address


  • DIN for 2 Directors
  • MOA + AOA
  • Customized Incorporation Master File
  • Bank Account Opening Document Support
  • Digital Signature for 1 Director
  • Incorporation Certificate
  • Company PAN Card
  •  Domain Name + Web Hosting
  • Company Name Approval
  • New Incorporation Kit
  • Company TAN/TDS Number
  • + 10 Email Ids for 1 year

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anmol ghai

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