If you want to start a trust/ NGO or charity then you need to register it as a section 8 company. Or if you already own an NGO or charitable trust and you want to register it legally then the best way to do it is under section 8 company. Earlier it was known as section 25 company as the legal form of Non-Governmental Organizations or Non-Profit Organizations.
A section 8 company will be declared as a non-profit entity which is involved in social work and for the benefit of the countrymen. The organization can be a private limited company or a public limited company. If it is a private limited company then at least 2 promoters will be required and if it is a public limited company then at least 7 promoters will be needed.
Following is the eligibility criteria for registering a Section 8 company:
Minimum 2 person required to act as shareholders or director of the company.
At least one of the shareholder has to be Indian
No minimum capital is required, but the registration fee will depend on the capital amount
The company should do the promotion to protect one or more from the following:
- Social Welfare
- Protection of Environment