Trust / Section-8 Company Registration

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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:

  1. Commerce
  2. Science
  3. Sports
  4. Research
  5. Education
  6. Social Welfare
  7. Religion
  8. Charity
  9. Protection of Environment

FAQs for Section 8 Registration

Yes, there are no restrictions on the payment of employees or directors of a Section 8 company. Hence; all the employees of the organisation can get the salary.
Because the entities under a society, trust or NGO do not engage in economic activities like commerce or trading so it does not have to pay GST.
The 12 A section exempt the section 8 company from all kinds of taxes while 80 G exempts the taxable income of the donating person. This is to help section 8 companies to get more donations.
Following are the forms required for Section 8 Registration: INC 1 – Name Approval INC 7 – Application for Incorporation of Company INC 8 – Declaration INC 9 – An affidavit from each director and subscriber INC 12 – Application for License INC 13 – Memorandum of Association INC 14 – Declaration from a practicing Chartered Accountant INC 15 – Declaration from each person making the application INC 16 – License to incorporate as Section 8 company INC 22 – The situation of Registered Office DIR 2 – Consent of Directors DIR 3 – Application to ROC to get DIN DIR 12 – Appointment of Directors
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