INCORPORATION OF NGO COMPANY

  • An NGO can be registered as a Non-Profit entity under section 8 of the Companies Act, 2013.

Permissible Objectives of NGO:

to promote arts, commerce, science, research, education, sports, charity, social welfare, religion, environmental protection, or other similar activities goals.

Such entities utilize their profits to achieve their mission and do not distribute dividends to their shareholders.

Advantages of NGO:

Name Protection

Once your NGO is registered, no one can use the same name or similar name all over India.

Further, It can be registered with names that have words like Association, Society, Council, Foundation, Academy, Institute, Organisation, Club, Charities, Federation, etc.

Legal Recognition

NGO registration provides a legal recognition and status as it is a separate legal entity having perpetual succession. The NGO can continue to exist even it the founder leave the NGO.            

Public Recognition

Registered NGOs are listed on the government portals and directories which increases their exposure and the beneficiaries and volunteers can easily find them.

Tax exemptions

NGOs have several tax benefits and exemptions. Registration under section 80G and 12A provides various tax exemptions to the donors.

Access to govt programs and schemes

Registered NGOs have easy access to the government schemes, trainings and programs

Funding and Grants

NGOs can have access to various sources for donations, funding and grants, CSR funds and international donor agencies.

No minimum capital requirement

There is no minimum capital specified for registration of NGO company.

No stamp duty

NGO company is exempt from the requirement of paying stamp duty on the MOA and AOA of the private or public limited company.

REQUIREMENT LIST FOR REGISTRATION OF AN NGO COMPANY

Basic documents required for registration

For Company:

  • Registered address proof -Electricity Bill/ Telephone Bill/ Mobile Bill/ Gas Bill (any one)
  • No Objection Certificate for use of office address
  • Projected income and expenditure account for next 3 years

For Directors and subscribers:

  • Self-attested PAN Card and Aadhar Card Copy 
  • Self-attested Residence Proof: Electricity Bill/Bank Statement/Mobile Bill (Any one)
  • Passport size photographs

Basic Information required for registration

For Company:

  • Proposed Name of Company 
  • Nature of business
  • Initial Capital
  • Contact No. and Email Id

For Directors and subscribers:

  • Name of Director/ Shareholder
  • Mobile No.
  • Email Id
  • Place of Birth
  • Educational Qualification
  • Current Occupation

FREQUENTLY ASKED QUESTIONS :

NGOs can be registered as Trusts, Societies or as a Private Limited Company under section 8 of the Companies Act, 2013.

It is a non-profit organization or non-governmental organization registered under section 8 of the Companies Act, 2013 whose sole objective is promoting arts, commerce, education, charity, protection of environment, sports, science, social welfare, religion.

NGO (under section 8) can be registered as a Private Limited or Public Limited Company. A minimum of 2 Directors and 2 shareholders are required to form a Private Limited company and a minimum of 3 directors and 7 shareholders are required to form a Public Limited Company.

Yes. NGOs can receive foreign funding if they are registered under FCRA.

Any individual, NRI or even foreign national can become a director in a Section 8 Company.

Any individual, Associations of Persons, company, firms or NRI can also become a member of a Section 8 Company.

NGOs registered under section 80G of the Income Tax Act have benefit of tax exemption. Donors of an NGO will receive a tax credit on their donation if the NGO has an 80G certificate.

All the donations received by an NGO are taxable if they are not registered under section 12A of the Income Tax Act. NGOs having 12A exemption certificate are not liable to pay tax.

It is valid for lifetime.

NGO registered as Section 8 company shall maintain its books of accounts, prepare annual accounts and file income tax returns. It shall also file annual returns as required under the provisions of the Companies Act,2013.

No. A one person company cannot be incorporated as section 8 company or convert into a Section 8 Company.

No. A one person company cannot become a member of section 8 company.

Yes, under the Companies Act, 2013, a Partnership firm or an LLP can become the member of Section 8 Company.

Yes, a Section 8 Company can be converted into any other company including a One Person Company.

Request A Quote

We specialize in providing online company registration and compliance services for all types of business entities. Our processes are fully digital so that we can be at your service irrespective of where you are.