The following are the advantages of incorporating a Section 8 company over other modes of registering an NGO:

• It has organised operations and greater flexibility.
• Avoids meticulous registration process and no physical presence required.
• No requirement of a minimum paid-up capital.
• Seamless procurement of tax benefits under section 12AA and 80G of the Income Tax Act.
• Any partnership firm can be a member in its individual capacity and obtain Directorship.

For registering a Section 8 company, the following criteria must be fulfilled:

• • Governed by: Companies Act, 2013.
  • Members: Minimum of 2 Directors/Shareholders.
  • Important Documents: MoA, AoA and financial statements.
  • Board: Directors.
  • Property management: The property of the company vests in the name of the Company and the same can be sold as per the rules mentioned under the Companies Act. (Ex: With the consent of the Board of Directors in the form of a resolution).
  • Winding up or closure: Dissolution as per the bye-laws of the society, upon dissolution and after settlement of all debts and liabilities, the funds and property of the society may not be distributed among the members of the company, rather, the remaining funds and property must be given or transferred to some other section 8 company, preferably one with similar objects.
  • Annual compliance: There is a requirement of annual compliance by the filing of annual accounts and the returns of company with the RoC.

• DSC and DIN of the Directors.
• Objectives and proposed work of the company.
• Financial statements like assets and liabilities, the projection for five years etc.
• Directors personal documents.
• Registered office address documents viz. rental agreement or sale deed in the name of the company, utility bills not older than two months.