Overview

Introduction

Why You Should Register

• It is a legal entity distinct from its members.
• Enjoys limited liability protection for members.
• Can receive donations, grants, and CSR funds.
• Profits are reinvested into the company’s objectives and not distributed.
• Eligible for income tax exemptions (u/s 12A & 80G) and FCRA registration for foreign funding.
• Highly trusted by donors, government agencies, and corporates.

Compliance and Taxation

• Section 8 Companies must comply with the Companies Act, 2013 and are regulated by the Registrar of Companies (ROC).
• Annual filing of AOC-4 and MGT-7A, along with statutory audit, is mandatory.
• Must apply for 12A and 80G registration under the Income Tax Act for exemption on income and donor tax benefits.
• Taxed as a domestic company if not registered under 12A, but eligible for full exemption if registered.
• Must maintain books of accounts, conduct board meetings, and comply with CSR and funding regulations if applicable.

Registration Type

• PAN & TAN (Company)
• GST Registration
• 12A Registration
• 80G Registration
• FCRA Registration
• Udyam (MSME)
• Current Bank Account

Purpose

• For tax and TDS compliance
• For businesses providing taxable services
• For exemption on income of the NGO
• For allowing donor tax deductions
• For receiving foreign donations
• Optional for social enterprises
• To manage donations and operations

When You Should Convert

• The company plans to pursue commercial operations.
• The charitable purpose is fulfilled or no longer relevant.