Section 8 Company (NGO)
Non-Profit Organization Setup
Section 8 Company Registration in Delhi
For promoters who want to establish an NGO with the organizational structure and legal backing of a company, a Section 8 Company is the most secure and prestigious vehicle. At Kushal Singh and Company, we assist you in obtaining the non-profit license and corporate registry for your philanthropic venture.
A Section 8 Company is incorporated for promoting charitable objects like art, science, education, sports, research, and social welfare, where profits are strictly reinvested into the company's goals. We handle the license filings, MOA/AOA drafting, and 12A/80G tax exemptions registrations.
Benefits of a Section 8 Company
- Separate legal status with limited liability
- Tax exemptions under Section 12A & 80G
- Exempted from paying stamp duties during setup
- Eligible for CSR funding from top corporates
- Excluded from using "Limited" or "Pvt Ltd" suffix
- High credibility for receiving international funds
Registration Process
Obtain DSC & DIN
Securing digital signatures and DIN numbers for all proposed directors (minimum 2).
RD License Filing
Submitting detailed objectives and financial forecasts to the Regional Director for the NGO license.
ROC E-Filing
Submitting SPICe+ forms with the approved RD license to receive the Certificate of Incorporation.
Frequently Asked Questions
Can directors of Section 8 companies draw a salary?
No, directors of a Section 8 Company are generally not allowed to receive any remuneration, salary, or dividend, as all earnings must be strictly applied towards the promotion of the company's non-profit objectives.
What are the requirements for 12A and 80G registrations?
Under Section 12A of the Income Tax Act, the company's income becomes tax-exempt. Under Section 80G, donors receive a 50% tax deduction on their contributions. Both registrations must be applied for online with the Income Tax Department post-incorporation.
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