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NGO Registration in India

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Guide to Registering a Section 8 Company

NGOs play a pivotal role in driving change, from promoting education to fighting climate change. If you’re planning to start one, NGO registration in India is the first big step.

In this guide, you’ll learn everything about NGO registration in India, especially as a Section 8 Company, the most structured and credible form of NGO under the Companies Act, 2013.

What is an NGO?

An NGO (Non-Governmental Organisation) is a non-profit body formed to promote social, educational, religious, charitable, or cultural causes.

In India, there are three main ways to register an NGO:

  • Trust:
    Governed by: Indian Trusts Act, 1882
    Regulatory Authority: State-level Registrar
  • Society:
    Governed by: Societies Registration Act, 1860
    Regulatory Authority: State-level Registrar of Societies
  • Section 8 Company:
    Governed by: Companies Act, 2013
    Regulatory Authority: Ministry of Corporate Affairs (MCA)

Among all three, Section 8 Company registration is the most structured and credible, offering higher transparency, national recognition, and better donor confidence.

What is Section 8 NGO Registration?

A Section 8 Company is a non-profit organisation registered under the Companies Act, 2013. It is formed with the objective of promoting charitable, social, cultural, educational, or religious causes and not for earning profits.

Activities typically include:

  1. Promoting education and literacy
  2. Supporting environmental sustainability
  3. Advancing art, culture, and heritage
  4. Facilitating scientific research
  5. Encouraging sports and wellness
  6. Working towards social welfare and philanthropy

Any income or surplus generated must be reinvested in furthering the organisation’s goals. No part of the profit can be distributed to its members or directors.

To operate as a Section 8 Company, the organisation must obtain a special licence from the Central Government. Once approved, it can register without using the words “Private Limited” or “Limited” in its name.

Benefits of Registering as a Section 8 NGO

Registering your NGO in India as a Section 8 Company offers several advantages, both from a legal and operational standpoint. Here’s why many organisations choose this structure:

  • Legal credibility
    Section 8 Companies are registered under the Companies Act, 2013 — offering higher trust and recognition from donors, government bodies, and CSR contributors.
  • No minimum capital requirement
    You don’t need a pre-decided capital to register. Funds can be raised through donations, grants, or subscriptions after incorporation.
  • Tax benefits
    Once registered, your NGO can apply for 12A and 80G certifications, making donations tax-deductible for donors and helping the organisation save on taxes.
  • No stamp duty
    Unlike other types of companies, Section 8 registration is exempt from stamp duty on the Memorandum and Articles of Association.
  • Separate legal identity
    The company has its own legal existence, independent of its members. This helps in entering contracts, owning property, and opening bank accounts in the organisation’s name.
  • Limited liability
    The personal assets of directors and members remain protected. They are not liable for the debts or liabilities of the company.
  • Higher donor confidence
    With stricter compliance requirements and transparent governance, Section 8 NGOs are generally seen as more reliable by donors and funding agencies.

Who Can Register an NGO?

If you’re planning NGO registration in India as a Section 8 Company, here are the basic eligibility criteria you need to meet:

  • You’ll need a minimum of 2 directors for a Private Limited structure, or 3 directors for a Public Limited one.
  • At least one director must be an Indian resident, this is mandatory under MCA rules.
  • Promoters can include individuals, Hindu Undivided Families (HUFs), or even registered firms.
  • Founders and directors cannot take any profit from the NGO, the purpose must be purely charitable or public-serving.
  • Most importantly, the organisation’s objectives must serve public interest, such as education, health, social welfare, environment, or any other permitted charitable cause.

In short, if your intent is genuine, your structure is ready, and your goals are aligned with public welfare, you’re good to move to the registration process.

Eligibility Checklist for Section 8 Company

Before you start the process, make sure your NGO aligns with the legal conditions required under the Companies Act. Here’s what you need to have in place:

  • Charitable Objective: Your organisation must exist to promote causes like education, environment, social welfare, arts, science, or similar public-serving goals.
  • No Profit Sharing: Any income or surplus must be used strictly to achieve the NGO’s objectives. Distribution of profits among members is not allowed.
  • No Remuneration to Members: Directors or members cannot draw salaries or dividends from the company.
  • Board-Driven Governance: The NGO must be governed through a formal Board of Directors, clearly outlined in the Memorandum and Articles of Association (MOA and AOA).
  • Registered Office: A valid address proof is required to complete the incorporation process.
  • Digital Signatures: Every proposed director must have a valid Digital Signature Certificate (DSC) for filing incorporation documents online.

Documents Required

  • PAN card of all directors
  • Aadhaar card, passport, or voter ID as identity proof for each director
  • Passport-size photographs of all proposed directors
  • Proof of registered office address – this could be an electricity bill, property tax receipt, or rent agreement
  • No Objection Certificate (NOC) from the owner if the office space is rented
  • Draft MOA and AOA – clearly stating the NGO’s objectives and rules of governance
  • INC-14 declaration – a professional declaration from a Chartered Accountant, Company Secretary, or Advocate
  • INC-15 declaration – a subscriber declaration confirming understanding of the company’s objectives
  • Estimated income and expenditure statement – covering the next three financial years

Ensuring all documents are clear, valid, and updated will prevent unnecessary delays during the registration process. Having all the necessary documents in place will make the registration smoother—here’s what you need to prepare.

Forms Required for NGO Registration in India

Form Name What It’s For
SPICe+ (INC-32) The primary form used for incorporating a Section 8 company. It covers name reservation, incorporation, and other statutory registrations like PAN, TAN, EPFO, etc.
INC-12 Filed to apply for the central government’s license required to operate as a Section 8 company under the Companies Act, 2013.
INC-13 The Memorandum of Association (MOA), detailing your NGO’s objectives and scope of activities.
INC-14 & INC-15 Legal declarations: INC-14 is a professional declaration by a CA/CS/advocate; INC-15 is a declaration by each subscriber affirming their commitment to the objectives.
INC-16 The license issued by the Registrar of Companies (RoC) once INC-12 is approved. This authorises the NGO to operate without using “Limited” or “Private Limited” in its name.
INC-22 Used to verify the NGO’s registered office address by submitting relevant proof and documents.
DIR-2, DIR-3 & DIR-12 DIR-2 is the director’s consent to act, DIR-3 is used to apply for Director Identification Number (DIN), and DIR-12 records the formal appointment of directors.

Penalty for Non-Compliance

If a Section 8 company (NGO):

  • Misuses its license
  • Deviates from its stated charitable objectives
  • Fails to meet ongoing compliance requirements

Then the government has the authority to:

  • Revoke the Section 8 license
  • Impose fines ranging from ₹10 lakh to ₹1 crore on the company
  • Penalise directors with fines between ₹25,000 and ₹25 lakh
  • Initiate criminal proceedings, including imprisonment, in serious cases

Common Mistakes to Avoid

  • Using prohibited words like “Limited” or “Pvt Ltd” in the name
  • Omitting required declarations in Forms INC-14 and INC-15
  • Submitting incomplete or unrealistic income projections
  • Choosing a name that closely resembles an existing company (Always verify name availability on the MCA portal)
  • Neglecting post-registration compliance filings such as INC-22 and DIR-12

Conclusion

Section 8 company registration gives your NGO the legal status it needs to operate with credibility, attract donations, and claim tax exemptions. It’s a structured and recognised way to carry out social work on a larger scale.

But the process demands accuracy, right from document preparation to timely filings. If done right, it builds a strong foundation for long-term impact. So, stay compliant, avoid common mistakes, and let the law support your cause as you focus on creating real change.

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