Section 8 Company (NGO) Registration

A Section 8 company is formed for charitable or not-for-profit objects such as commerce, art, science, sports, education, research, social welfare or religion. It must apply its profits and income to those objects and cannot distribute dividends to members. It still enjoys the privileges and obligations of a limited company. (Companies Act, 2013, s. 8(1)-(2))

A Section 8 company is incorporated under the Companies Act and is regulated through MCA filings. Trusts and societies are created under different statutes, so their governance, liability, amendment and reporting rules are not the same. In practice, a Section 8 company is usually more corporate in structure and more compliance-heavy. (Companies Act, 2013, s. 8; Indian Trusts Act, 1882; Societies Registration Act, 1860)

Section 8 status by itself does not create income-tax exemption. If the organisation wants exemption on its income, it normally needs separate registration under Section 12AB and must satisfy the conditions in Sections 11-13; donor deduction benefits are a separate 80G approval. So incorporation and tax exemption are related, but legally distinct. (Income-tax Act, 1961, ss. 11, 12AB, 80G)

Not automatically. A Section 8 company can receive foreign contribution only if it has FCRA registration or prior permission under Section 11, and the registration process is under Section 12. It also has to use the designated FCRA account required by Section 17. (FCRA, 2010, ss. 11-12, 17)

The minimum members depend on whether the company is private or public. Section 3 requires at least 2 members for a private company and 7 for a public company. Section 8 does not override that baseline company-law rule. (Companies Act, 2013, s. 3(1)(a)-(b))

Yes, but not as a dividend distribution. Section 8(1)(c) prohibits distributing profits to members, while genuine remuneration or reimbursement for services can be paid if the articles and the Act permit it. So the key distinction is between salary or remuneration and profit distribution. (Companies Act, 2013, s. 8(1)(c); s. 197 where applicable)

At a minimum, a Section 8 company still has to file the annual return under Section 92 and financial statements under Section 137, hold its AGM under Section 96, and follow board-governance rules under Section 173. Audit and record-keeping obligations also continue unless a specific exemption applies. Not-for-profit status does not mean no ROC compliance. (Companies Act, 2013, ss. 92, 96, 137, 173)

The Act does not prescribe a fixed number of days for Section 8 incorporation. The timeline depends on name approval, Section 7 documentation and ROC processing under the Companies (Incorporation) Rules, 2014. In a complete file, it is usually a process timeline issue rather than a legal deadline. (Companies Act, 2013, s. 7; Companies (Incorporation) Rules, 2014)