NGO (Non-Government Organisation) is an organization that works for non-profit/ charitable purposes. In India, NGO is an umbrella term for all non-profit organizations including Trust, Society, and Section 8 Company.
The main purpose of creating a company as a section 8 company is to promote non-profit objectives like trade, commerce, arts, charity, education, religion, environment protection, welfare, sports, research, etc. The profits/incomes of the corporate if any, are applied towards promoting the objectives of the organization and don’t seem to be distributed as dividends to its shareholders.
A minimum of two directors is required if the Section 8 company is to be incorporated as a personal Ltd. , and a minimum of three directors just in case of incorporation as a public Ltd. . the utmost number of members is 200 just in case of a private Ltd. , whereas for a public Ltd. , there’s no such limit.
NGOs can be registered in India under the following laws:
- Trust under Indian Trusts Act, 1882
- Society under Societies Registration Act 1860
- Section 8 Company under Companies Act, 2013
Also, there’s no requirement of minimum paid-up capital just in case of a section 8 company.