INCORPORATION OF NGO COMPANY

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.