What is the difference between Section 8 Company and Trust/Society?

Section 8 Company is registered under Companies Act, 2013 while Trusts are registered under Indian Trusts Act and Societies under Societies Registration Act. Section 8 companies offer better credibility, structured governance, and easier access to corporate funding compared to trusts and societies.

Can a Section 8 Company do business activities?

Section 8 companies can engage in business activities only if the profits are used exclusively for promoting its charitable objects and no dividend is distributed to members. The primary purpose must remain charitable, not commercial.

What is the minimum capital requirement for Section 8 Company?

There is no minimum capital requirement for Section 8 companies. The authorized capital can be as low as ₹1,00,000 or even less depending on the organization's needs and objectives.

How long does 80G certificate approval take?

80G certificate approval typically takes 3-6 months from the date of application. The timeline may vary depending on the workload of the Commissioner of Income Tax and completeness of documentation.

Can foreign nationals be directors in Section 8 Company?

Yes, foreign nationals can be directors in Section 8 companies subject to compliance with Foreign Contribution Regulation Act (FCRA) if the company plans to receive foreign contributions.

What happens if a Section 8 Company makes profits?

Profits must be completely utilized for promoting the charitable objects of the company. No portion of profit can be distributed as dividend to members. Surplus funds should be reinvested in the organization's activities.

Is audit compulsory for Section 8 Companies?

Yes, audit is mandatory for Section 8 companies regardless of their turnover or income. They must file audited financial statements with the Registrar of Companies annually.

Can Section 8 registration be converted to regular company?

Yes, Section 8 company can be converted to a regular company by following the procedure under Companies Act, 2013 and obtaining approval from Regional Director and NCLT. This requires amendment to MOA and AOA.

NGO & Section 8

Section 8 NGO Registration: How to Get 80G/12A in India

Complete guide to Section 8 NGO registration and obtaining 80G/12A certificates in India. Step-by-step process, documents required, costs, and expert assistance from Liquetax.

What this guide covers

What does Section 8 NGO Registration: How to Get 80G/12A in India mean in practice?
Who is affected and what should they check first?
Which documents or records should be kept ready?
What common mistakes should be avoided?