In India, NGOs can be registered as a Trust, Society, or a Section 8 Company. Among these, the Section 8 Company is gaining popularity for its professional structure, legal benefits, and credibility—especially among NGOs that aim for long-term sustainability and corporate partnerships.
A Section 8 Company is a non-profit company registered under the Companies Act, 2013, with the primary objective of promoting charitable activities like education, healthcare, social welfare, environment, and more. Although it works just like any other NGO, its legal framework gives it unique advantages.
Let’s explore the top 5 benefits of registering an NGO as a Section 8 Company in India:
1. ✅ Legal Recognition and Strong Governance
A Section 8 Company enjoys the status of a legally incorporated entity under the Ministry of Corporate Affairs (MCA). Unlike Trusts and Societies, which are governed by state-level laws, a Section 8 Company operates under a centralized law—the Companies Act, 2013.
This centralized governance ensures a uniform regulatory framework, better compliance, and increased accountability. For donors, government agencies, and CSR partners, a Section 8 Company structure inspires greater confidence due to its transparent reporting and statutory obligations.
2. 💰 Higher Trust Among Donors and CSR Partners
For any NGO, trust and credibility are essential to raise funds. A Section 8 Company is generally perceived as more professional and reliable because of its structured compliance, mandatory audits, and ROC filings.
This makes it easier to secure funding from:
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Corporate donors under CSR (Corporate Social Responsibility)
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International funding agencies
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High-net-worth individuals (HNIs)
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Government schemes and grants
Donors often prefer Section 8 Companies because their fund usage is well-monitored and documented, reducing the risk of misuse.
3. 📜 Tax Exemptions and Compliance Benefits
Just like any other NGO, a Section 8 Company can apply for 12A and 80G certificates under the Income Tax Act. These registrations allow the NGO to:
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Save tax on its income
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Allow donors to claim tax deductions under 80G
Moreover, Section 8 Companies also benefit from GST exemptions on certain services and reduced import duties on goods required for their charitable projects.
4. 👥 No Minimum Capital Requirement & Easy Fundraising
Unlike private limited or public companies, a Section 8 Company doesn’t need any minimum paid-up capital. This makes it easier for social entrepreneurs and changemakers with limited funds to set up and scale their NGO legally.
It also offers the flexibility to raise funds through:
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Memberships
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Grants
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Subscriptions
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Crowdfunding campaigns
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CSR tie-ups
The company can accept donations both domestically and from abroad (after FCRA registration), helping it expand its programs without capital restrictions.
5. 🔄 Perpetual Existence & Professional Management
A Section 8 Company enjoys perpetual succession, meaning it continues to exist irrespective of changes in its management or members. This ensures long-term stability and uninterrupted implementation of projects.
It can:
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Hire staff legally
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Sign contracts
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Own property
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Open and manage bank accounts in its own name
The board of directors is responsible for governance, making it a professionally run NGO that’s scalable, efficient, and ready for national/international collaborations.
🎯 Conclusion
If you’re planning to start an NGO in India or convert your existing Trust/Society into a more structured format, registering as a Section 8 Company is one of the best decisions you can make. It offers legal credibility, tax advantages, donor trust, and a platform for long-term impact.
With growing focus on CSR partnerships and international funding, a Section 8 Company gives your NGO the structure it needs to stand out and scale up.
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