Section 8 Company (Non-Profit Organization)

Section 8 Company Registration in India

“Section 8 Company Registration – For NGOs, Trusts & Charitable Institutions”

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A Section 8 Company is a company registered under the Companies Act, 2013, formed with the objective of promoting charitable activities, education, art, science, social welfare, sports, environment, or any other non-profit objectives. Unlike other companies, a Section 8 Company does not distribute profits as dividends; instead, it reinvests them to further its objectives.

It is one of the most credible and recognized forms of NGOs in India, often preferred for grants, CSR funds, and tax benefits.

Key Features of Section 8 Company

  • Works not-for-profit but has a corporate legal structure.

  • No minimum capital requirement.

  • Profits cannot be distributed to members; must be used for objectives.

  • Enjoys tax exemptions under the Income Tax Act.

  • Separate legal identity, perpetual succession, and limited liability.

  • Eligible to receive donations, foreign contributions (after FCRA approval), and CSR funding.

Advantages of Section 8 Company

  • Legal Recognition & Credibility – Highly trusted among donors, government, and corporates.

  • Limited Liability – Members are not personally liable.

  • Tax Benefits – Eligible for exemptions under Section 12AA & 80G of the Income Tax Act.

  • No Minimum Capital Requirement – Easy to start.

  • Separate Legal Entity – Can own property, enter contracts, and sue/be sued in its own name.

  • CSR & Foreign Funding – Eligible for CSR funds from companies and FCRA registration for foreign donations.

Process of Section 8 Company Registration

  1. Obtain DSC & DIN for proposed directors.

  2. Apply for Name Approval with MCA.

  3. Draft MOA & AOA specifying non-profit objectives.

  4. File SPICe+ Form with Registrar of Companies.

  5. Get License under Section 8 from MCA.

  6. Certificate of Incorporation Issued along with PAN & TAN.

Post-Registration Compliances

  • File Income Tax Returns annually.

  • File Annual Returns with ROC (Form AOC-4 & MGT-7).

  • Maintain proper books of accounts.

  • Apply for 80G & 12AA registration to claim income tax exemptions for donors.

  • If receiving foreign funds, obtain FCRA registration.

Why Choose Section 8 Company?

A Section 8 Company is ideal for NGOs, social entrepreneurs, charitable trusts, and organizations working for public welfare. Compared to Societies and Trusts, it provides higher credibility, better compliance framework, and eligibility for grants/donations.

A Section 8 Company is the most reliable form of non-profit organization in India, giving entrepreneurs and NGOs a legal structure with tax benefits, credibility, and funding opportunities.

We provide complete assistance in Section 8 Company Registration—from documentation and license approval to compliance and tax benefits. With our expert guidance, you can focus on creating social impact while we handle the legalities.

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