NGOs work for non-profit or charitable purposes. NGOs are formed as Section 8 under the Companies Act, 2013, regulated by the Ministry of Corporate Affairs (MCA). In contrast, trusts or societies registered under a state government are regulated by the state registrar of NGOs.

Section 8 provides trusts and societies certain benefits over company registration. Such NGOs are more trusted by government bodies, donors and stakeholders. The process required to register an NGO as a Section 8 company under the Companies Act, 2013 is explained below.

Registration of NGOs in India can be done under any one of the following laws:

Indian Trusts Act, 1882 (for trusts), Societies Registration Act, 1860 (for societies) and Section 8 of Companies Act, 2013 (for companies) The purpose and meaning of the Act is:

Business, Arts, Science, Sports, Education, Research, Social Welfare, Charitable Giving, Environmental Protection Any related purpose

When the Central Government feels that any person or group wishes to form a company for any of the above purposes, it grants licence to it to be registered under Section 8 of the Companies Act, 2013. The profits of such company should be used for carrying out its objects and should not be given as dividend to its members.

Section 8—Steps required for incorporation of a company

• Give Digital Signature Certificates (DSC) to the proposed directors. After getting the DSC, file Form DIR-3 with the ROC (Registrar of Companies) to obtain a Director Identification Number (DIN). This includes your identity and address proof.
• After the approval of DIR-3, the ROC will give the DIN to the proposed directors.
• Section 8, fill the INC-12 form with the ROC for company license. Attach all the required documents mentioned in the form.
• The license will be issued in INC-16 form after the application is approved.
• After getting the license, file the SPICe+ form with the ROC for incorporation of the company

A Certificate of Incorporation and a unique Company Identification Number (CIN) will be issued once the ROC is satisfied with the proposal.