It is another type of Non Government Organization, previously it was known as section 25 company under Companies Act, 1956. Nowadays it is most popular form of NGO. Section 8 company can be registered for the environmental, on human or animal rights, improving health and welfare of children, development work or even raising awareness about a particular cause or activity, such as art, science, commerce, political and religious purpose. It is non-profit organization. It can earn the profit through its object but the entire profit will be used only for the promotion of its object. Being a NGO section 8 company privileged with many relaxation under companies Act, 2013 by the Ministry of corporate Affairs. Section 8 company has all the benefits which a private limited company and public limited company can use. It is very easy to register, run or manage a Section 8 Company in comparison of a Trust and a Society.

• 1. Minimum 2 persons are required to incorporate a section 8 company.
• 2. High transparency.
• 3. Easy to run and manage.
• 4. Easy to get approval from Government Departments such as 80G and 12A.
• 5. Easy compliance.

• 1. Expensive to incorporate as compare to society or trust.
• 2. More compliance.

It will take 20-30 days to register a Section 8 company with Department.

• 1. Trust
• 2. Society
• 3. Section 8 Company.

Before an applicant choose any option of the NGO. We would like to share this information that as per law though a same level of weightage is given to all forms of the NGOs but in practical scenario Section 8 Company has more weightage over trust and society.

Section 8 Company is better in all scenarios as compared to trust and society except one drop back associated with section 8 Company is that Initial Cost and annual maintenance charges are high as compared to trust and society.