Section 8 Company Compliances

A Section 8 Company is like a Trust or Society; expect, a section 8 Company is registered under the Central Government's Ministry of Corporate Affairs. Other entities like Societies & Trusts are registered under State Government regulations. It has numerous advantages comparison to Society or Trust like better recognition and better legal standing. Section 8 company also has greater reliability amongst donors, Government departments and other investors.

NGO/Trust Registration

Trust Registration process can be created for the benefit of society. A trust can be registered by any person, group or an institution with minimum of two members. The formation of a trust generally takes 20-25 days time from the date of filing of an application. An NGO / Trust is recommended for the small charitable activities or the community.

80G/12A Certificate

To provide income Tax benefits to the “donors”, all NGO’s must apply for 80G & 12A certification. If an NGO gets itself registered under section 80G & 12A then the person or the organization making a donation to the NGO will get a deduction of 50% of donation amount from taxable income.

Society Registration

The Societies Registration Act, 1860 is normally an association of persons united together by mutual consent to act jointly for some common purpose. The registration of entities usually involved in the benefit of education, art, religion, culture, music, sports, health, employment etc. 

FCRA Registration

FCRA registration is required to attract donations from outside India. The NGO must be registered under the provisions of the Foreign Contribution Regulation Act, 1976. For FCRA registration, an NGO must have completed three years of operations. FCRA Registration is granted by the Ministry of Home Affairs, Govt. of India.

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