I want to set up a Section 8 NGO in Dwarka, what are the requirements and tax benefits?
CH Asked by Charu Singhal from India
Quick Answer
A Section 8 company is registered under the Companies Act, 2013, and the Delhi Rent Control Act 1958 rules for charitable organizations in your state supplement its operation.
Detailed Legal Analysis
A Section 8 company is registered under the Companies Act, 2013, and the Delhi Rent Control Act 1958 rules for charitable organizations in your state supplement its operation. The company must have a charitable or not-for-profit object and cannot distribute profits to its members in Dwarka.
The application is filed with the Registrar of Companies through the SPICe+ form along with the memorandum and articles of association. The Delhi High Court has held that Section 8 companies enjoy the same legal status as other companies but with restrictions on profit distribution.
Tax benefits include exemption under Section 12A and 80G of the Income Tax Act, provided the objects and activities qualify. The company must get a license from the central government before incorporation, and the license can be revoked for violation of conditions.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.