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Section 8 Company (NGO) Registration in Bihar

Section 8 Company Registration in India / NGO Registration in India

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A Section 8 Company is a non-profit company licensed under Section 8 of the Companies Act, 2013 to promote commerce, art, science, sports, education, research, social welfare, religion, charity or environmental protection. It has a separate legal identity, limited liability, perpetual succession and no minimum capital requirement, and it cannot pay dividends — every rupee of surplus must be applied to its objects. Since 15 August 2019 the separate licence application in Form INC-12 has been abolished for new companies: the Section 8 licence in Form INC-16 is now issued together with incorporation through SPICe+, which has substantially shortened the timeline to roughly ten to twenty working days. Tax exemption and donor deduction are obtained separately, under Section 12AB and Section 80G, on a provisional-then-regular basis.

Vakilkaro provides seamless Section 8 Company Registration and NGO Registration in India with end-to-end legal support. Section 8 Company Registration is the legal process of incorporating a non-profit organisation under the Companies Act, 2013, and it is the right structure for individuals and institutions that want to promote education, charity, science, religion, arts, sport, environmental protection or social welfare.

A Section 8 Company has a separate legal identity, enjoys income tax benefits once registered under Section 12AB, and carries materially more credibility with donors, corporates and government departments than a trust or a society. Our team of experienced Chartered Accountants, Company Secretaries and legal professionals handles the entire process — DSC, name approval, MoA and AoA drafting, the Section 8 licence, the Certificate of Incorporation, and the subsequent 12AB, 80G, CSR-1, NGO Darpan and FCRA registrations — at a transparent and affordable fee with no hidden charges.

Introduction

What is an NGO?

NGO stands for Non-Governmental Organisation — a non-profit body formed to work in charity, social upliftment, education, culture, environment, religion or humanitarian activity. NGOs play a substantial role in addressing social problems and in supporting communities that need development and welfare assistance.

The defining characteristic is that the organisation’s purpose is not to generate profit for its owners. NGOs operate across a wide range of sectors:

Literacy and education programmes

Health and medical care for marginalised populations

Gender equality and women’s empowerment

Child rights and welfare

Ecological protection and nature conservation

Vocational training and skill development

Agriculture and rural development

Legal aid and human rights

Poverty eradication and financial inclusion

Animal rights and welfare

Social awareness and advocacy campaigns

Depending on its objects and scale, an NGO may operate locally, at state level, nationally or internationally.

It is worth clearing up the terminology at the outset, because it causes real confusion. “NGO” is not a legal form. It is a descriptive umbrella term. In Indian law the actual legal forms available are a trust, a society and a Section 8 company — and every NGO is one of these three. When someone says they want to “register an NGO”, the first question is always which of the three they mean.

What is Section 8 Company Registration in India?

A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs. It is incorporated for the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or any such other object.

Two conditions define it. First, the company must apply its profits and other income solely in promoting its objects. Second, it must prohibit the payment of any dividend to its members. Both must be written into the Memorandum of Association, and both are conditions of the licence.

The Central Government, acting through the Registrar of Companies, grants a licence in Form INC-16 permitting the entity to be registered as a limited company without adding “Limited” or “Private Limited” to its name. That licence is what makes it a Section 8 company, and it is granted subject to conditions the company must continue to observe.

An important procedural change. Until 2019, obtaining that licence was a separate first stage — an application in Form INC-12 to the Registrar, followed only afterwards by incorporation. The Companies (Incorporation) Sixth Amendment Rules, 2019, with effect from 15 August 2019, removed that requirement for new companies. The Section 8 licence is now applied for within the SPICe+ incorporation application itself, and the licence in Form INC-16 is issued along with the Certificate of Incorporation as a single integrated process. Form INC-12 now applies only to an existing company converting itself into a Section 8 company, not to a fresh registration.

This matters practically, because a great deal of published material — and a number of consultants — still describe and bill for a two-stage process that no longer exists for new registrations, adding weeks to a timeline that has genuinely shortened.

Types

Types of NGO Registration in India

There are three legal forms under which an NGO can be registered in India. Of the three, the Section 8 company is the most structured, most professionally governed and most credible.

Trust

  • Governing law: Indian Trusts Act, 1882 (private trusts); public charitable trusts are governed by state legislation where enacted
  • Registering authority: local Sub-Registrar

Constituted by a trust deed between the settlor and the trustees

Society

  • Governing law: Societies Registration Act, 1860, as adapted by the states
  • Registering authority: Registrar of Societies of the state

Constituted by a memorandum of association and rules and regulations, signed by the founding members

Section 8 Company

  • Governing law: Companies Act, 2013
  • Registering authority: Ministry of Corporate Affairs, through the Registrar of Companies

Constituted by incorporation, with a licence under Section 8

Features of a Section 8 Company

Registered under the Companies Act, 2013 with national validity

Separate legal identity distinct from its members and directors

No distribution of profit to members — all surplus applied to the objects

Limited liability for members and directors

No minimum capital requirement

Higher credibility than a trust or a society with donors, corporates and government

Eligible for tax exemption under Section 12AB and donor deduction under Section 80G

Eligible to receive foreign contribution after FCRA registration

Eligible to receive CSR funds after CSR-1 registration, subject to the conditions in the CSR Rules

National footprint — one registration, operations anywhere in India

Perpetual existence, unaffected by change of directors or members

Stamp duty exemption on incorporation documents in several states

Trust, Society and Section 8 Company: How They Differ

The Section 8 company is best suited to organisations that intend to operate at scale over the long term, work across states, and seek the highest possible credibility with institutional donors, corporates and government departments. A trust remains a reasonable choice for a small, family-governed charitable endowment; a society suits a membership-based association with a democratic structure.

  • The trade-off is honest and worth stating: the Section 8 company’s credibility is a direct consequence of its compliance burden. Statutory audit, board meetings, annual filings and MCA oversight are what make a CSR committee comfortable approving a grant — and they are also a real, recurring cost that a trust does not carry.

Private or Public Section 8 Company?

A Section 8 company may be incorporated as either a private company or a public company, and the choice is made at incorporation.

  • Private Section 8 company: minimum two members and two directors. Suits most founding groups, and is by far the more common choice.
  • Public Section 8 company: minimum seven members and three directors. Suits organisations that expect a wide membership base or intend to constitute a large governing council.

Neither adds “Limited” or “Private Limited” to its name — the Section 8 licence exempts it from that requirement. A One Person Company cannot be a Section 8 company, and a Section 8 company cannot be incorporated as an OPC.

There is no upper limit on the number of directors prescribed specifically for Section 8 companies, which allows larger governing boards where the organisation’s structure requires them.

Why Register a Section 8 Non-Profit Company?

Trust of the general public and of corporate donors

Enhanced transparency through mandatory annual filings and statutory audit

Formal legal status, which materially improves fundraising capacity

Legal ability to accept donations and issue valid receipts and 80G certificates

A bank account in the organisation’s own name as a separate legal entity

Tax benefits through Section 12AB and Section 80G registration

Access to Corporate Social Responsibility funding from companies

Ability to own property, hold intellectual property, contract, sue and be sued in its own name

Recognition by government departments for grants and scheme participation

Continuity of the mission irrespective of changes in the founding team

An unregistered charitable initiative, however genuine, will find grants, corporate donations and government support largely inaccessible. Almost every funder’s first question is what the entity is and what registrations it holds.

Benefits

Benefits of Section 8 Company Registration

High credibility and professionalism. Governed by the Companies Act, 2013 with MCA oversight, which donors, corporates and government departments recognise.

No minimum capital requirement. The company can be incorporated with nominal capital and funded through grants, donations and programme income.

Limited liability protection. Members and directors are not personally liable for the organisation’s debts.

Separate legal entity. The company owns property, holds bank accounts, contracts and litigates in its own name.

Tax exemption. Registration under Section 12AB exempts the company’s income from tax, subject to the conditions of the exemption regime.

Donor deduction. Registration under Section 80G allows donors to claim a deduction, which makes fundraising materially easier.

Increased fundraising potential. Corporates prefer to route CSR spending through legally compliant, audited organisations, and government departments and foreign donors do likewise.

National presence. One registration permits operations across every state without further registration.

Perpetual existence. Changes in directors or members do not affect the entity, which protects the mission over decades.

Greater transparency. Statutory audit, annual filings and public MCA records.

Stamp duty exemption on incorporation documents in a number of states.

Restrictions on a Section 8 Company

The credibility comes with genuine constraints, and these should be understood before incorporating.

No dividend or distribution of profit to members or directors, in any form, at any time.

Income must be applied solely to the objects stated in the Memorandum.

Alteration of the Memorandum or Articles requires Central Government approval, unlike an ordinary company where members’ resolution suffices. Objects should therefore be drafted with the organisation’s ten-year horizon in mind, not just its first programme.

The licence is conditional and may be revoked for contravention.

Directors may be paid reasonable remuneration for services actually rendered, but not merely for being members, and remuneration must be genuinely reasonable — this is an area both the MCA and the income tax authorities scrutinise.

Cannot be an OPC, and cannot be converted into an OPC.

On winding up or dissolution, surplus assets after satisfying debts must be transferred to another company with similar objects, not distributed to members.

Conversion into an ordinary company is possible only with Central Government approval and subject to conditions, including dealing with accumulated assets and any tax benefits already availed.

Who Can Register a Section 8 Company in India?

Who can be a member

Indian citizens and residents

Non-Resident Indians

Foreign nationals, subject to the applicable foreign investment and other regulations

Companies, LLPs and other body corporates

Existing trusts and societies, acting through authorised representatives

Who can be a director

Any individual aged 18 or above

Of sound mind, and not an undischarged insolvent

Not disqualified from appointment under Section 164 of the Companies Act, 2013

Holding a valid DIN, which is allotted through the incorporation application itself for first directors

At least one director must be resident in India, having stayed in India for not less than the prescribed period in the previous financial year

Foreign nationals may be directors, subject to the applicable regulations and with properly apostilled documents

A private Section 8 company requires a minimum of two members and two directors; a public Section 8 company requires seven members and three directors. The same individuals may serve as both members and directors.

Section 8 Company Name Guidelines

The name of a Section 8 company must reflect its non-profit character, and the rules on this are specific.

The name must not include “Limited” or “Private Limited” — the Section 8 licence exempts the company from that requirement

The name should include one of the words the Rules contemplate for such companies: Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust and words of a similar nature

The name must not be identical or too closely resembling an existing company or LLP

The name must not conflict with a registered trademark, and a name that infringes a mark can be challenged and ordered changed even after incorporation

The name must not be undesirable, offensive, or suggest government patronage or connection with a government authority

Certain words require prior approval

One correction worth making, because it appears in a great deal of published guidance: “Trust” and “Society” are not appropriate suffixes for a Section 8 company name. Those words denote different legal forms, and using them in a company name is misleading and is generally objected to. “Electoral Trust” is a specific defined category and is the exception rather than the rule. If you want your organisation to be called a trust, register a trust; if you want a Section 8 company, use Foundation, Association, Council or a similar word.

Names are reserved through SPICe+ Part A, not through RUN — RUN is now used for the change of name of an existing company, not for fresh incorporation.

Documents

Documents Required for Registration

Identity and address of every director and subscriber

PAN card, mandatory for Indian nationals

Aadhaar, passport, driving licence or voter ID

Address proof — bank statement, electricity, telephone or mobile bill, not older than two months

Passport-size photograph

Email address and mobile number

Digital Signature Certificate

  • For foreign nationals and NRIs: apostilled or notarised passport and address proof

Registered office

  • If rented: rent agreement, the owner’s no-objection certificate, and a utility bill not older than two months
  • If owned: ownership proof and a utility bill not older than two months

Substantive documents filed with the application

Draft Memorandum of Association in the form prescribed for Section 8 companies

Draft Articles of Association

Declaration by an Advocate, Chartered Accountant, Company Secretary or Cost Accountant in practice, that the requirements of the Act and the Rules have been complied with

Declaration by each subscriber and first director

Estimated statement of income and expenditure for the next three years, showing the sources of income and the objects on which it will be applied

Statement of the grounds on which the licence is applied for

Consent to act as director

The three-year income and expenditure projection is not a formality. It is the document from which the Registrar assesses whether the organisation genuinely intends to apply its income to charitable objects, and a projection that reads like a commercial business plan is a common cause of query. Vakilkaro prepares it as a substantive document rather than a filler.

Pre-Registration and Post-Registration Checklist

Pre-registration

Obtain a Digital Signature Certificate for every proposed director and subscriber

Decide private or public, and fix the number of members and directors

Finalise the name, checked against both the MCA database and the trademark register

Draft the Memorandum with objects framed for the long term, and the Articles

Prepare the three-year income and expenditure projection

Obtain the professional declaration and the subscribers’ and directors’ declarations

Assemble registered office proof

Post-registration

Obtain the Certificate of Incorporation, the Section 8 licence in Form INC-16, the CIN, PAN and TAN

Appoint the statutory auditor within thirty days and file Form ADT-1

File the declaration of commencement of business in Form INC-20A within one hundred and eighty days

Open the bank account in the company’s name

Issue share certificates within sixty days

Apply for provisional registration under Section 12AB in Form 10A

Apply for 80G registration in Form 10A

Register on NGO Darpan with NITI Aayog

File Form CSR-1 with the MCA to receive CSR funds, subject to the eligibility conditions

Apply for FCRA registration or prior permission if foreign contribution is contemplated

Set up books of account, statutory registers and minute books

Step-by-step Process

The Section 8 Company Registration Procedure (Step by Step)

The entire process is online through the MCA portal, and — importantly — it is now a single-stage process for new companies.

  • Step 1: Obtain Digital Signature Certificates.One to two days. Class 3 DSCs for every proposed director and subscriber, with video verification. All forms are digitally signed, so this is the genuine first step.
  • Step 2: Director Identification Number.Allotted with incorporation. DINs for first directors are allotted through the SPICe+ application itself. No separate prior DIN application is required, contrary to a great deal of older guidance.
  • Step 3: Name reservation through SPICe+ Part A.Two to three days. Up to two names are proposed, reflecting the non-profit character and using an appropriate word such as Foundation, Association, Council or Forum. The name is checked against existing companies, LLPs and registered trademarks.
  • Step 4: Draft the Memorandum and Articles.Three to five days. This is the most important step in the entire process. The Memorandum’s object clauses determine whether the licence is granted, and defective objects are the single most common reason for rejection. Objects must be genuinely charitable, must not read as commercial, and should be drafted broadly enough to accommodate the organisation’s future programmes — because altering them later requires Central Government approval.
  • Step 5: File SPICe+ Part B with the Section 8 licence application.One to two days to prepare. The incorporation application is filed together with the Memorandum and Articles, the professional declaration, the subscribers’ and directors’ declarations, the three-year income and expenditure projection and the statement of grounds. The Section 8 licence is applied for within this application — Form INC-12 is not filed for a new company. The linked AGILE-PRO-S form covers PAN, TAN, EPFO, ESIC, professional tax and the bank account.
  • Step 6: Registrar’s examination and approval.Five to ten working days. The Registrar examines the objects, the projection and the declarations, and may raise a resubmission query — most commonly on the object clauses.
  • Step 7: Certificate of Incorporation and Section 8 Licence.On approval. The Registrar issues the Certificate of Incorporation with the CIN, together with the Section 8 licence in Form INC-16, and PAN and TAN are allotted.
  • Step 8: Post-incorporation registrations.Two to six months, in parallel. Bank account, auditor appointment, INC-20A, then 12AB and 80G in Form 10A, NGO Darpan, CSR-1, and FCRA where applicable.
  • Where Form INC-12 still applies: an existing company — an ordinary private or public limited company already incorporated — that wishes to convert itself into a Section 8 company applies for the licence separately in Form INC-12. That is the only remaining use of the form.

Time

How Long Does Registration Take?

The total time frame is significantly shorter than the 15-25 working days often quoted because the latter figure was based on the pre-2019 two-stage process, with a separate 7-10 day licence application. The quality of the object clauses and the speed of name approval are now the decisive factors.

Cost

What Does Registration Cost?

A Section 8 company is inexpensive to incorporate relative to the funding it unlocks, but it is not inexpensive to maintain — statutory audit and annual filings are mandatory from the first year and recur regardless of activity. That recurring cost should be budgeted for at the outset, because an organisation that cannot sustain its compliance loses the very credibility it incorporated to obtain.

Can a Section 8 Company Earn Money?

Yes. The law permits a Section 8 company to earn income in a variety of ways. What it may not do is distribute any of that income to its members or directors as profit. All income must be applied to the objects.

Legitimate sources of income include:

Donations from individuals, companies and other institutions

Grants from government bodies, foundations and international agencies

Corporate Social Responsibility contributions

Fees for educational programmes, workshops and training

Consultancy and advisory services aligned with the objects

Online courses and educational content

Fundraising events and functions

Sale of publications, produce or handicrafts where connected to the objects

Interest and investment income on the organisation’s own funds

There is an important tax nuance here that founders should understand. Where an organisation carries on an activity in the nature of trade, commerce or business, the exemption regime imposes conditions and limits on how much of the total receipts such activity may represent, and exceeding them can jeopardise the exemption. A training foundation charging subsidised fees to further its objects is on safe ground; a foundation whose income is overwhelmingly commercial and whose charitable programme is incidental is not. Structuring programme income properly is a matter to take advice on rather than assume.

12AB Registration: Why It Is Important

Registration under Section 12AB of the Income Tax Act is what exempts a Section 8 company’s income from income tax. Without it, the organisation’s receipts — including voluntary contributions — are potentially taxable, and a very substantial share of the funds intended for social activity would be lost to tax instead.

The current regime is not the old 12A/12AA regime, and this is a point on which most published guidance is out of date. Since the amendments effective from 2021:

Registration is granted under Section 12AB, and the earlier registrations under Section 12A and 12AA were required to be migrated

A newly formed organisation applies in Form 10A and receives provisional registration valid for three years

The organisation must then apply for regular registration in Form 10AB — within six months of commencement of activities, or at least six months before the provisional registration expires, whichever is earlier

Regular registration is valid for five years and must be renewed by a fresh Form 10AB application

Registration is no longer perpetual; the renewal cycle is a permanent feature of the regime

Benefits of 12AB registration

Exemption of the organisation’s income from income tax, subject to the conditions of the regime

Substantially improved donor confidence

Financial sustainability — more funds available for programme work

A practical prerequisite for government grants, CSR funding and, in most cases, FCRA

The renewal requirement is where organisations most often come unstuck. A provisional registration obtained at incorporation and then forgotten will expire, and reapplying after lapse is considerably harder than renewing in time. Vakilkaro tracks these dates for clients.

Significance of 80G Registration

Registration under Section 80G allows a donor to claim a deduction in respect of donations made to the organisation. It does not benefit the organisation directly in tax terms — it benefits it enormously in fundraising terms, because it makes giving materially cheaper for the donor.

For most 80G-registered organisations, the donor may claim a deduction of 50% of the donation, subject to a qualifying limit generally computed as 10% of the donor’s adjusted gross total income

The organisation applies in Form 10A for provisional approval and subsequently in Form 10AB for regular approval, on the same provisional-then-regular cycle as 12AB

The organisation must file a Statement of Donations in Form 10BD annually, by 31 May, reporting every donor and donation

The organisation must issue a certificate to each donor in Form 10BE by the same date

A donor cannot claim the deduction unless the donation appears in the organisation’s Form 10BD filing. This is now the operative control, and it means the organisation’s reporting discipline directly determines whether its donors get their deduction

The Form 10BD requirement is the single most commonly missed 80G obligation, and it causes real reputational damage — a donor who cannot claim a deduction he was promised does not usually donate again.

NGO Darpan (NITI Aayog) Registration

NGO Darpan is the portal on the NITI Aayog website where voluntary organizations can register for getting a Unique ID. This is not a statutory registration process, but it is an essential requirement in many crucial situations:

Most central and state government ministries require a Darpan ID before a grant application will be considered

The Darpan ID is required in the course of FCRA applications and filings

Several CSR portals and corporate diligence processes ask for it

The portal maintains basic organisational, office-bearer and financial information which funders consult

Registration requires the organisation’s PAN, the registration certificate, and the PAN and Aadhaar of the office bearers, and is generally completed within a couple of weeks. It costs nothing and there is no good reason to defer it.

CSR-1 Registration for CSR Funding

Companies that meet the defined thresholds are required to set aside part of their average net profits for Corporate Social Responsibility activities. The implementing organisation should be registered with MCA in form CSR-1 generating a CSR Registration Number to receive those funds legally.

The eligibility conditions in the CSR Rules are stricter than most guidance suggests, and this is important. To act as an implementing agency, the organisation must be a Section 8 company, a registered public trust or a registered society registered under Section 12AB and Section 80G, and must additionally be either:

established by the funding company itself, or by its holding, subsidiary or associate company; or

established under an Act of Parliament or a State legislature; or

an entity with an established track record of at least three years in undertaking similar activities

The practical implication is huge. A newly incorporated Section 8 company which has no track record cannot in general get CSR funds from an unrelated corporate even with CSR-1 registration until it has three years of demonstrable similar activity. Organisations are frequently told that CSR-1 registration alone makes them eligible for CSR and they plan their first year fundraising around a source that is in fact not yet available to them.

That is not a reason to defer CSR-1 registration — obtain it, build the track record, and document the activity carefully from year one, because the three-year record has to be evidenced when the time comes.

FCRA Registration for Foreign Funds

Any organisation wishing to receive foreign contribution — donations or grants from a foreign source — must be registered or have obtained prior permission under the Foreign Contribution (Regulation) Act, 2010. Accepting foreign contribution without it is an offence, not merely a compliance lapse.

Two routes exist:

  • Registration: available to an organisation with a track record of at least three years of meaningful activity in its chosen field and prescribed minimum spending on those activities. Registration is valid for five years and must be renewed by application at least six months before expiry.
  • Prior permission: available to an organisation without a three-year track record, for a specific amount from a specific donor for a specific project. This is the route a newly formed organisation with an identified foreign donor should use, and it is widely overlooked.

Key operational requirements under the current framework:

Foreign contribution must be received only in the designated FCRA account at the specified branch of the State Bank of India in New Delhi; a utilisation account may be maintained elsewhere

Sub-granting of foreign contribution to another organisation is prohibited, even to another FCRA-registered entity

Administrative expenses out of foreign contribution are capped at the prescribed percentage

Aadhaar of all office bearers, directors and key functionaries is required

Annual return in Form FC-4 must be filed, with audited accounts, by 31 December each year

Quarterly disclosure of receipts on the organisation’s website or the FCRA portal

FCRA is the most heavily regulated part of the non-profit framework and the area in which registrations are most frequently cancelled. It should be approached with proper advice rather than treated as another certificate to collect.

Compliance

Annual Compliance for Section 8 Companies

Other ongoing requirements

Board meetings — at least two in a calendar year for a Section 8 company, with the prescribed gap

Books of account properly maintained at the registered office

Statutory registers and minute books

12AB and 80G renewal on their respective cycles

FCRA renewal at least six months before expiry

Compliance with the conditions of the Section 8 licence at all times

  • Penalty for default: late filing of AOC-4 and MGT-7 attracts ₹100 per day per form, without cap in the ordinary case, and the exposure accumulates silently.

The three items on this list most often missed are Form 10BD, without which donors lose their 80G deduction; the 12AB regular registration application in Form 10AB, without which provisional registration lapses; and FCRA renewal, which cannot be applied for late.

Revocation of the Section 8 Licence

The Central Government may revoke the licence where a Section 8 company contravenes the provisions of Section 8 or the conditions of its licence, or where its affairs are conducted fraudulently or in a manner prejudicial to its objects or to the public interest. Before revocation, the company is given an opportunity of being heard.

The consequences are serious. On revocation the company may be directed to convert its status and change its name to add “Limited” or “Private Limited”, may be ordered to be wound up, or may be amalgamated with another company having similar objects. Where the company is wound up, surplus assets after satisfying liabilities must be transferred to another Section 8 company with similar objects — they cannot be distributed to members.

These practical causes are what need to be protected from: using the income for anything other than the objects, any sort of distribution to the members, payments to the directors which are not actually reasonable, and persistent non-compliance.

Why Are NGOs Preferring Section 8 Company Status Today?

Higher credibility and greater donor confidence

Corporate governance discipline and clear accountability

Transparency through statutory audit and public MCA records

Access to the full range of funding — CSR, government grants and, after FCRA, foreign contribution

National reach from a single registration

Professional appearance to institutional funders and diligence teams

Preference of digital fundraising and crowdfunding platforms for registered, compliant entities

Continuity of the mission across generations of leadership

Common Errors While Registering NGOs

Defective object clauses in the Memorandum — by a wide margin the most common reason for rejection. Objects that are vague, commercially worded, or too narrow to accommodate future programmes.

Filing Form INC-12 for a new company — obsolete since 15 August 2019, and a route that will simply be returned.

Using “Trust” or “Society” in a Section 8 company name — inconsistent with the form and generally objected to.

Name clashes with an existing company, LLP or registered trademark.

Outdated or mismatched documents — address proof older than two months, names inconsistent across documents.

Incomplete registered office proof — missing no-objection certificate or a utility bill in a third party’s name.

A weak or missing three-year income and expenditure projection.

Objects drafted too narrowly, given that amendment requires Central Government approval.

Assuming CSR eligibility on incorporation without the three-year track record.

Deferring 12AB and 80G, and then losing the ability to fundraise effectively.

Missing the Form 10AB deadline and allowing provisional registration to lapse.

Not budgeting for annual compliance, and accumulating penalties in the first two years.

How Vakilkaro Helps in NGO Registration

Section 8 Company registration, end to end — DSC, name approval with trademark check, MoA and AoA drafting, three-year projections, SPICe+ filing with the Section 8 licence application, Certificate of Incorporation, PAN and TAN

Trust registration and Society registration, where those forms are the better fit

Structure consultancy — an honest recommendation between trust, society and Section 8 company based on your scale, funding sources and governance preference

Expert MoA drafting — objects framed for the organisation’s ten-year horizon, since amendment later requires Central Government approval

12AB and 80G registration — Form 10A provisional, Form 10AB regular, and the renewal calendar thereafter

NGO Darpan registration with NITI Aayog

CSR-1 registration, with a realistic assessment of when you will actually become CSR-eligible

FCRA registration and prior permission, including the designated account and the FC-4 return

Annual compliance — statutory audit coordination, AOC-4, MGT-7, ITR-7, Form 10B or 10BB, Form 10BD and 10BE, DIR-3 KYC, board meeting and AGM documentation

Funding management consultancy for NGOs building a grant pipeline

Why Choose Vakilkaro?

Why Choose Vakilkaro for Section 8 Company Registration?

Experienced legal team — Chartered Accountants, Company Secretaries and legal professionals specialising in non-profit registration and MCA filings

Current process, not outdated process — we file the single-stage SPICe+ application, not an obsolete INC-12 route, and we do not bill for a stage that no longer exists

Expert MoA drafting — the most critical document in the entire registration, drafted around your specific social objectives

Quick and accurate processing — documents reconciled before filing to minimise queries and rejections

Transparent fee structure — clear, all-inclusive pricing with no hidden costs

Comprehensive services — from incorporation through 12AB, 80G, NGO Darpan, CSR-1 and FCRA to annual compliance

Nationwide availability, including every district of Rajasthan

Post-registration support — ROC filings, ITR-7, Form 10BD, FCRA compliance, Director KYC and board documentation

Contact Vakilkaro today and take the first step towards lasting social impact through a properly registered Section 8 Company.

The Future of Section 8 Companies in India

India’s non-profit sector is growing quickly, driven by:

Rising Corporate Social Responsibility spending by companies meeting the statutory thresholds

Government schemes that create opportunities for delivery partnerships with NGOs

Growth in social entrepreneurship among younger, professionally trained founders

Increased youth participation in social causes

Digital fundraising platforms widening the donor base far beyond traditional networks

Continued international donor interest in India’s development story

At the same time, the regulatory environment is tightening — the 12AB renewal cycle, Form 10BD donor reporting, the CSR track record requirement and the FCRA framework all point in the same direction: funding is moving towards organisations that can demonstrate compliance. That trend favours the Section 8 company decisively, and it makes proper setup and disciplined compliance a fundraising strategy rather than an administrative chore.

Organisations working in education, healthcare, rural development, women’s empowerment, financial inclusion and sustainability are likely to see the strongest growth, and this is a good moment to establish a Section 8 company properly.

Questions, answered

Frequently asked questions

A non-profit organisation registered under Section 8 of the Companies Act, 2013 and regulated by the MCA, set up to promote commerce, art, science, sports, education, research, social welfare, religion, charity or environmental protection. It is the most credible non-profit structure in India. It has the limited liability and a separate legal identity. It cannot distribute profits.

“NGO” is a descriptive term, not a legal form. Every NGO in India is legally a trust, a society or a Section 8 company. A Section 8 company is the most structured and credible of the three.

A trust is formed by a deed under the Indian Trusts Act or under state laws, and it is registered with the Sub-Registrar; it is the one having minimum compliance and is usually a state-level entity. The society is registered under the Societies Registration Act, and it is registered with the state Registrar and operates on a democratic member basis. A Section 8 company is registered with the MCA under the Companies Act, 2013.

No, not for a new company. With effect from 15 August 2019 the separate Section 8 licence application in Form INC-12 was abolished for fresh incorporations — the licence is now applied for within SPICe+ and issued in Form INC-16 along with the Certificate of Incorporation. Form INC-12 now applies only where an existing company converts itself into a Section 8 company.

Incorporation and licence: around ten to twenty working days, provided objects and documentation are clean. The estimates floating around of fifteen to twenty-five days are longer and are the two-stage process before 2019.

There is none. A Section 8 company can be incorporated with nominal capital and funded through grants, donations and programme income.

A private Section 8 company requires two members and two directors; a public Section 8 company requires seven members and three directors. At least one director must be resident in India. There is no prescribed upper limit on directors for Section 8 companies.

No.No dividend or distribution of any kind may be made to members or directors. All surplus must be applied to the objects. Directors may be paid reasonable remuneration for services actually rendered.

No.A One Person Company cannot be incorporated as, or converted into, a Section 8 company.

Indian citizens, NRIs, foreign nationals subject to applicable regulations, companies, LLPs, and existing trusts and societies through authorised representatives. Directors must be 18 or above, of sound mind, not insolvent, and not disqualified under Section 164.

Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust and similar words. The name does not carry “Limited” or “Private Limited”. “Trust” and “Society” are not appropriate for a Section 8 company name, since they denote different legal forms.

The Memorandum and Articles of Association, the three-year estimated income and expenditure statement, the professional declaration and the subscribers’ and directors’ declarations. The object clauses in the Memorandum are the single most important element of the application.

Registration under Section 12AB of the Income Tax Act, which exempts the organisation’s income from tax. It replaced the old Section 12A and 12AA regime. New organisations obtain provisional registration for three years in Form 10A and must then apply for regular registration in Form 10AB, which is valid for five years and renewable.

Within six months of start of activities or at least six months before the expiry of provisional registration, whichever is earlier. If the provisional registration is not completed by this date it will expire.

It enables donors to make a deduction of up to 50 percent of their donation depending on an upper limit, which is calculated based on the donors’ adjusted gross total income. This provision does not decrease the organisation’s tax but helps donors make donations cheaper.

The annual Statement of Donations, due by 31 May, in which the organisation reports every donor and donation. A donor cannot claim the 80G deduction unless the donation appears in this filing, and the organisation must also issue each donor a certificate in Form 10BE by the same date.

Registration with the MCA in Form CSR-1, generating a CSR Registration Number, without which an organisation cannot legally receive CSR funds.

Generally not from an unrelated corporate. Under the CSR Rules the implementing agency must hold 12AB and 80G registration and must either have been established by the funding company or its group, or established under an Act of the legislature, or have an established track record of at least three years in similar activities. A new organisation should obtain CSR-1, build and document the track record, and plan its early funding around other sources.

Any organization wanting to receive foreign contributions must first register under the Foreign Contribution (Regulation) Act, 2010. The organization should have three years’ experience before registration, which will be valid for five years and can be renewed by applying at least six months before its expiry date.

Apply for prior permission rather than registration. Prior permission is available without a three-year track record, for a specific amount from a specific donor for a specific project, and is widely overlooked by new organisations.

Only in the designated FCRA account at the specified State Bank of India branch in New Delhi. A utilisation account may be maintained elsewhere. Sub-granting foreign contribution to another organisation is prohibited.

The NITI Aayog portal that issues a Unique ID to voluntary organisations. It is not statutory but is required in practice for most central and state government grants, in FCRA processes and in many corporate diligence checks. It is free and should be obtained early.

Yes — through donations, grants, CSR, training fees, consultancy, workshops, publications and investment income. None of it may be distributed; all of it must be applied to the objects. Where activity is commercial in nature, the exemption regime imposes conditions and limits that should be taken into account.

Yes. As a separate legal entity it can own movable and immovable property in its own name, entirely distinct from the personal property of its directors and members.

Yes. A single MCA registration is valid nationwide with no further state registration required — a significant advantage over a society, whose registration is state-level.

Yes, but alteration of the Memorandum of a Section 8 company requires Central Government approval, which takes time. Objects should therefore be drafted broadly enough at incorporation to accommodate the organisation’s likely future programmes.

Statutory audit AGM within 6 months from the end of the financial year AOC-4 within 30 days of the AGM MGT-7 within 60 days ITR-7 Form 10B or 10BB Form 10BD and 10BE 31 May DIR-3 KYC 30 September FC-4 31 December FCRA registered At least 2 board meetings in a year.

Ordinary case- AOC-4 & MGT-7- ₹100 per day per form without ceiling. Disqualification of directors of persistently defaulting companies

Yes. The Central Government may revoke the licence for contravention of Section 8 or the licence conditions, or where affairs are conducted fraudulently or prejudicially. The company may then be required to change its status and name, be wound up, or be amalgamated with another Section 8 company.

After satisfying debts and liabilities, surplus assets must be transferred to another company with similar objects. They cannot be distributed to members.

Section 25 was the equivalent provision under the Companies Act, 1956. It was replaced by Section 8 under the Companies Act, 2013, and existing Section 25 companies were deemed to be Section 8 companies. All new non-profit company registrations are made under Section 8.

No, but without a registered entity almost every institutional funding route — CSR, government grants, FCRA and most crowdfunding platforms — is closed, and donations cannot carry 80G benefit.

The MCA-based process is used throughout India, completely online, and no state office needs to be visited. Jaipur, Jodhpur, Udaipur, Kota, Ajmer, Bikaner, and Alwar have an existing NGO ecosystem, and Vakilkaro, located in Rajasthan, manages Section 8 registrations and compliance for NGOs in the state.

For a small, tightly controlled charitable endowment, opt for a trust; for a membership association with democratic governance, opt for a society; and for operating at scale, across states and seeking CSR, government or foreign funding, opt for a Section 8 company. Instead of a default answer, vakilkaro will give you a direct recommendation based on your plans.

Vakilkaro provides complete end-to-end Section 8 and NGO registration — DSC, name approval with trademark check, expert MoA and AoA drafting, three-year projections, single-stage SPICe+ filing with the Section 8 licence, Certificate of Incorporation, PAN and TAN, followed by 12AB, 80G, NGO Darpan, CSR-1 and FCRA, and all ongoing annual compliance. Experienced CAs, CSs and legal professionals, transparent all-inclusive pricing, and a process built on the rules as they stand today rather than as they stood five years ago. Contact Vakilkaro today and take the first step towards building your Section 8 Company for lasting social impact across India.

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