Section 8 Company Registration
Establish Your Non-Profit Legally

A Section 8 Company is a registered non-profit organization in India, established under the Companies Act to promote charitable activities like education, social welfare, and environmental protection. It enjoys tax exemptions, credibility, and legal recognition for fundraising and grants. Register your Section 8 Company hassle-free with expert guidance and compliance support. Get started today with Udyog Suvidha Kendra!

Section 8 Company Registration

Key Benefits of Registering a Section 8 Company

Tax Exemptions & Financial Benefits : Enjoy tax benefits under Section 12A & 80G for financial relief.

Credibility & Legal Recognition : Enhances trust with donors, investors, and government authorities.

Limited Liability Protection :Protects members’ personal assets from company liabilities and debts.

Eligibility for Government Grants & Funding : Access various government schemes, subsidies, and financial assistance.

Better Compliance for NGOs & Social Enterprises : Structured legal framework ensures transparent operations and governance.

No Minimum Capital Requirement : Start with any capital amount, making it accessible for all.

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Section 8 Company Registration Application

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Section 8 company Registration

Section 8 Company Registration

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  Process of MCA Name Approval Registration

STEP 1

  • Fill out the online form with your details.
  • Make the required payment to proceed.
  • Get Call for Further Information, Documents & Advice

STEP 2

  • Submit documents and information if requested.
  • Team will review and validate documents and information.

STEP 3

  • Creation of login credential.
  • Respond to any follow-up from the team.

STEP 4

  • Filing of an Application using the Credentials
  • Government Processing Time

STEP 5

  • Resolution of Queries if any, Raised via Authorities
  • Issuance of MCA Name Approval Registration on email.

What is a Section 8 Company?

A Section 8 Company is a legally recognized non-profit organization in India, formed under the Companies Act, 2013, with the objective of promoting charitable, educational, social, religious, and environmental welfare activities. Unlike private or public limited companies, a Section 8 Company cannot distribute profits among its members; instead, all earnings must be reinvested towards achieving its social objectives. This structure provides credibility, tax exemptions, and eligibility for government grants and CSR funding, making it an ideal choice for NGOs, trusts, and social enterprises. Additionally, it enjoys limited liability protection, ensuring that members are not personally responsible for company debts. Registering a Section 8 Company enhances the organization’s legal standing, making it easier to secure donations, funding, and international collaborations.

Understanding the Concept of Section 8 Companies

A Section 8 Company is distinct from other forms of non-profits like trusts and societies because it operates with a corporate structure while maintaining a charitable focus. It is governed by the Ministry of Corporate Affairs (MCA) and registered under the Registrar of Companies (ROC), ensuring transparency and accountability. Organizations formed under this structure can raise funds from corporate CSR programs, receive tax exemptions under Section 12A & 80G, and apply for FCRA approval for foreign contributions. Due to its well-regulated framework, it is the most preferred form of legal entity for NGOs and social welfare initiatives in India.

Section 8 Company illustration

Legal Framework & Governing Authority

A Section 8 Company is regulated under the Companies Act, 2013, specifically under Section 8, which outlines its formation, objectives, and compliance requirements. The key governing bodies responsible for its registration and oversight include:

1. Ministry of Corporate Affairs (MCA)

Approves the incorporation and grants the license to operate as a Section 8 Company.

2. Registrar of Companies (ROC)

Handles registration, compliance, and governance-related filings.

3. Income Tax Department

Provides tax benefits under Sections 12A & 80G, allowing exemptions for both the company and donors.

4. FCRA (Foreign Contribution Regulation Act)

Regulates the eligibility to receive foreign donations and grants.

5. NITI Aayog & Other Government Agencies

Facilitate government grants, project funding, and social welfare approvals.

By registering as a Section 8 Company, organizations gain access to structured legal benefits, credibility, and financial advantages, making it easier to expand their social impact, attract funding, and operate transparently in compliance with regulatory guidelines.

Eligibility Criteria for Section 8 Company
Registration

Registering a Section 8 Company in India requires compliance with specific eligibility conditions as per the Companies Act, 2013. This structure is designed for non-profit organizations that focus on charitable, educational, scientific, religious, and social welfare activities. The key eligibility criteria include:

  • The company must be established for charitable or non-profit purposes, and any profits must be reinvested in the organization’s objectives.
  • It must have a minimum of two directors (for private limited) or three directors (for public limited).
  • At least one director must be an Indian resident.
  • The company name must include the terms Foundation, Association, Federation, Institute, Society, or Council instead of "Private Limited" or "Limited".
  • No dividends or profit distribution are allowed among members.
  • It must obtain approval from the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (ROC) before incorporation.

By meeting these eligibility criteria, an entity can apply for Section 8 Company registration and enjoy various legal, tax, and financial benefits while advancing its social welfare mission.

Eligibility for Section 8 Company

Who Can Register a Section 8 Company?

A Section 8 Company can be formed by:

  • 1. Individuals or Groups – Any individual or association of persons intending to promote charitable activities can register a Section 8 Company.
  • 2. Existing NGOs or Societies – NGOs and charitable trusts can convert into Section 8 Companies for greater credibility.
  • 3. Corporate Entities – Businesses engaged in CSR (Corporate Social Responsibility) initiatives can register to manage their social projects.
  • 4. Foreign Nationals or Entities – They can participate in the formation, subject to FCRA (Foreign Contribution Regulation Act) compliance.

This structure provides a corporate identity to social enterprises, making it easier to secure funding, collaborations, and regulatory approvals.

Who Can Register

Business Activities Permitted Under Section 8

A Section 8 Company can engage in a wide range of non-profit activities, including:

  • 1. Education & Literacy – Establishing schools, colleges, and vocational training centers.
  • 2. Healthcare & Medical Relief – Running hospitals, clinics, and health awareness programs.
  • 3. Environment & Sustainability – Conservation projects, climate action initiatives, and renewable energy programs.
  • 4. Social Welfare & Community Development – Supporting marginalized groups, promoting women’s empowerment, and poverty alleviation.
  • 5. Art, Culture & Heritage Promotion – Organizing cultural events, preserving historical sites, and supporting local artists.
  • 6. Scientific Research & Technology Development – Encouraging innovation and research in science and technology.

Since Section 8 Companies are legally bound to use their earnings for social welfare, they enjoy tax benefits, government grants, and exemption from stamp duty. This makes them an ideal choice for NGOs, foundations, and charitable organizations looking to expand their impact effectively.

Section 8 Activities

Documents Required for Section 8 Company Registration

Below is a checklist of all essential documents required for registering a Section 8 Company:

1. PAN Card

PAN Card of all directors and shareholders (mandatory for Indian nationals).

2. Identity Proof

Aadhar Card / Voter ID / Passport / Driving License for identity verification.

3. Address Proof

Latest Utility Bill or Bank Statement (not older than two months).

4. Passport (Foreign Nationals)

Must be notarized and apostilled.

5. Registered Office Proof

Electricity/Water/Gas Bill or Property Tax Receipt of the registered office.

6. Rental Agreement

If the office is rented, submit a rental agreement.

7. NOC from Property Owner

No Objection Certificate to use premises as registered office.

8. Memorandum of Association (MoA)

States the objectives of the company.

9. Articles of Association (AoA)

Outlines the internal rules and regulations.

10. Form INC-14 Declaration

From a CA, CS, or advocate confirming Section 8 compliance.

11. Form INC-15 Declaration

Signed by directors and members for intent to operate as non-profit.

12. DIN

Director Identification Number for all proposed directors.

13. DSC

Digital Signature Certificate for signing incorporation documents.

14. Projected Income Statement

For the next three financial years.

15. Details of Promoters & Members

With their roles and contact details.

Additional Documents (if applicable)

Resolution from Existing Entity

If an organization is promoting the Section 8 Company.

Approval from Authorities

If the company deals with regulated activities.

Step-by-Step Process for Section 8 Company Registration

1

Obtain Digital Signature Certificate (DSC)

  • All proposed directors must obtain a Digital Signature Certificate (DSC) from a government-recognized certifying authority.
  • The DSC is required for digitally signing the incorporation documents.
2

Apply for Director Identification Number (DIN)

  • Directors must obtain a Director Identification Number (DIN) by filing Form DIR-3 with the Ministry of Corporate Affairs (MCA).
  • If applying through SPICe+ (Simplified Proforma for Incorporating Company Electronically), DIN can be obtained during incorporation.
3

Name Reservation through RUN (Reserve Unique Name)

  • Apply for name approval using the RUN (Reserve Unique Name) service on the MCA portal.
  • The name must include words like Foundation, Association, Society, Council, Charitable Trust, etc., and should not violate MCA naming guidelines.
  • Once approved, the name is reserved for 20 days.
4

Draft Memorandum & Articles of Association (MoA & AoA)

  • MoA (Memorandum of Association) must define the company’s objectives, confirming its non-profit nature.
  • AoA (Articles of Association) outlines the internal rules and regulations.
  • Both documents must be signed and notarized by directors and subscribers.
5

File Form INC-12 for Section 8 License

  • Submit Form INC-12 along with the MoA, AoA, and necessary declarations to apply for the Section 8 Company license.
  • Approval is granted by the Registrar of Companies (RoC) and Central Government.
6

File SPICe+ Form for Company Incorporation

  • Submit the SPICe+ (INC-32) form for company registration, along with:
    • AGILE-PRO (INC-35) for GST, EPFO, ESIC, and professional tax registration.
    • MoA (INC-13) & AoA (INC-31).
    • INC-9 declaration from directors.
  • MCA will review and verify the documents.
7

Certificate of Incorporation & Section 8 License Approval

  • Upon successful verification, MCA issues:
    • Certificate of Incorporation (COI) with the Corporate Identification Number (CIN).
    • PAN & TAN of the company.
    • Section 8 License, authorizing the company to operate as a non-profit entity.
8

Open a Bank Account & Start Operations

  • Open a bank account in the company’s name using the incorporation certificate, PAN, and other documents.
  • Start business operations while ensuring compliance with Section 8 regulations.
9

Annual Compliance & Tax Exemptions

  • File Annual Returns (MGT-7) and Financial Statements (AOC-4) with MCA.
  • Maintain proper books of accounts and audits.
  • Apply for 80G & 12A certification for tax exemptions if eligible.

Section 8 Company Registration Fees & Processing Time

Government Fees & Other Charges

  • The registration fee for Section 8 companies is lower than that of other private or public companies, as the government provides exemptions.
  • Key costs include:
    • • Digital Signature Certificate (DSC): ₹1,000 - ₹2,000 per director.
    • • Director Identification Number (DIN): ₹500 per director (if not obtained through SPICe+).
    • • Name Reservation (RUN): ₹1,000.
    • • INC-12 Filing Fee (License Application): ₹2,000 - ₹5,000 (varies by state).
    • • Stamp Duty: Varies by state.
    • • Professional Fees (if hiring consultants): ₹10,000 - ₹25,000 (approx.).
Section 8 Fees

Expected Processing Time & Approval Duration

Processing Timeline
  • The entire Section 8 company registration process takes approximately 20-30 days, depending on document verification and government approvals.
  • Estimated timeline:
    • • DSC & DIN Acquisition: 1-3 days.
    • • Name Approval (RUN): 2-5 days.
    • • Section 8 License (INC-12) Approval: 10-15 days.
    • • Company Incorporation & Certificate Issuance: 7-10 days post-approval.
  • Delays may occur due to document errors, name rejections, or high application volume.

Post-Registration Compliance & Legal Obligations

Maintaining Financial Records

Maintaining Financial Records & Annual Filing

A Section 8 company must maintain proper books of accounts as per the Companies Act, 2013. Mandatory filings include:

Mandatory filings include:

  • Form AOC-4: Annual financial statements submission.
  • Form MGT-7: Annual return filing with the Ministry of Corporate Affairs (MCA).
  • Audit Requirement: Accounts must be audited by a Chartered Accountant.

Maintaining Financial Records & Annual Filing

A Section 8 company must maintain proper books of accounts as per the Companies Act, 2013. Mandatory filings include:

Mandatory filings include:

  • Form AOC-4: Annual financial statements submission.
  • Form MGT-7: Annual return filing with the Ministry of Corporate Affairs (MCA).
  • Audit Requirement: Accounts must be audited by a Chartered Accountant.

Compliance with Income Tax & GST (if applicable)

Income Tax: Section 8 companies can apply for 80G & 12A tax exemptions for donations received.

GST Registration: Required if annual turnover exceeds ₹20 lakh (₹40 lakh for goods-based companies) or if the company engages in interstate trade.

TDS Compliance: If applicable, Tax Deducted at Source (TDS) must be filed.

Income Tax & GST Compliance

Compliance with Income Tax & GST (if applicable)

Income Tax: Section 8 companies can apply for 80G & 12A tax exemptions for donations received.

GST Registration: Required if annual turnover exceeds ₹20 lakh (₹40 lakh for goods-based companies) or if the company engages in interstate trade.

TDS Compliance: If applicable, Tax Deducted at Source (TDS) must be filed.

Fundraising & Grants Compliance

Rules for Fundraising & Grants for Section 8 Companies

Section 8 companies can receive donations, grants, and CSR funds but must ensure compliance with:

  • FCRA (Foreign Contribution Regulation Act), if receiving foreign donations.
  • Companies Act, 2013, for corporate social responsibility (CSR) contributions.
  • Proper documentation and utilization tracking of funds is essential to avoid penalties.

Rules for Fundraising & Grants for Section 8 Companies

Section 8 companies can receive donations, grants, and CSR funds but must ensure compliance with:

  • FCRA (Foreign Contribution Regulation Act), if receiving foreign donations.
  • Companies Act, 2013, for corporate social responsibility (CSR) contributions.
  • Proper documentation and utilization tracking of funds is essential to avoid penalties.

Common Challenges in Section 8 Company Registration & How to Overcome Them

Documentation Errors

Documentation Errors and
Delays

Solution: Ensure all documents, including MOA, AOA, and identity proofs, are correctly drafted and verified by professionals before submission.

ROC & MCA Compliance

Compliance with ROC & MCA Regulations

Solution: Regularly file mandatory reports, maintain financial records, and seek expert assistance to avoid penalties and legal complications.

Non-Profit Misinterpretation

Misinterpretation of Non-Profit Activities

Solution: Clearly define objectives in MOA and ensure all funds are utilized for the company’s purpose to avoid regulatory issues.

Why Choose Udyog Suvidha Kendra for Section 8 Company Registration?

1
Expert Guidance for Hassle-Free Registration

Get step-by-step assistance from professionals to ensure smooth registration. Our experts handle documentation, approvals, and compliance efficiently.

2
End-to-End Compliance Support

We help you maintain legal compliance with ROC, MCA, and tax regulations, ensuring your Section 8 company operates without legal hurdles.

3
Affordable & Transparent Pricing

Enjoy cost-effective services with no hidden charges. We offer budget-friendly registration solutions with full transparency at every stage.

Section 8 Company Registration FAQs

What is a Section 8 Company?
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, to promote charitable activities like education, arts, science, and social welfare. Unlike other companies, its profits are reinvested to achieve its objectives instead of being distributed as dividends.
Any individual or group of individuals, including NGOs, trusts, and societies, can register a Section 8 Company, provided their objective is to promote charitable or non-profit activities. The applicant must be an Indian citizen, and foreign nationals need prior approval.
Section 8 Companies enjoy tax exemptions, legal credibility, limited liability protection, and eligibility for government grants. They also receive better donor confidence and can raise funds from CSR initiatives of corporations.
The organization must have a clear non-profit objective, comply with the Companies Act, 2013, and ensure that profits are reinvested in promoting its cause. The company must not distribute dividends to its members.
Key documents include PAN and Aadhaar of directors, address proof, company name approval, MOA, AOA, digital signatures (DSC), and director identification numbers (DIN). Additional documents like projected financial statements may also be required.
The cost varies depending on government fees, professional charges, and compliance costs. On average, registration costs range between ₹5,000 – ₹15,000, depending on the state and services availed.
The registration process typically takes 25-40 days, including document verification, name approval, MOA and AOA approval, and incorporation certificate issuance by the Ministry of Corporate Affairs (MCA).
Yes, a Section 8 Company can raise funds through grants, CSR contributions, and foreign donations (with FCRA approval). It can also generate revenue through permissible activities aligned with its objectives.
Yes, a Section 8 Company can be converted into a private or public limited company with approval from the Regional Director of MCA. The company must amend its MOA and AOA and meet the compliance requirements.
A Section 8 Company must file annual financial statements, income tax returns, conduct board meetings, maintain proper financial records, and adhere to ROC and MCA regulations to avoid penalties.
If the company provides goods or services and meets the GST threshold limit, it must obtain GST registration. However, if it operates solely on donations and grants, GST may not be mandatory.
Yes, directors can receive a reasonable salary for professional services rendered. However, profits cannot be distributed as dividends among members or directors.
Non-compliance can result in penalties, fines, or even cancellation of the company’s registration. Directors may also face legal action for failing to meet MCA, ROC, and income tax regulations.
Yes, foreign nationals and NRIs can register a Section 8 Company in India. However, they must obtain Foreign Contribution Regulation Act (FCRA) approval to receive foreign donations.
Udyog Suvidha Kendra offers expert guidance, end-to-end compliance support, affordable pricing, and a hassle-free registration process, ensuring smooth approval from government authorities.