Section 8 Company Registration in India
Establish a legally recognized non-profit and unlock tax benefits, funding opportunities, and social impact potential.
Introduction and Its Compliance
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013. It is formed with the objective to promote commerce, art, science, education, sports, charity, social welfare, religion, environmental protection or any other objective of public welfare.
Unlike regular companies, Section 8 Companies cannot distribute profits to its members and must reinvest earnings into the company's objectives.
Compliance for Section 8 Companies includes annual return filing, maintenance of books of accounts, audits, Board meetings and adherence to Ministry of Corporate Affairs (MCA) regulations. They are also eligible for tax exemptions and FCRA registration (for foreign donations), subject to specific compliance requirements.
Why It Is Needed
Registering a Section 8 Company gives your non-profit a formal legal status, making it easier to raise funds, apply for grants, receive donations and establish credibility with donors and government agencies.
It is ideal for individuals or groups aiming to create social impact with legal protection and structured governance. The structure offers strong regulatory backing, which helps in long-term sustainability and accountability.
Benefits and Advantages
Legal Recognition
A Section 8 Company has a recognized legal identity under Indian law, allowing it to own assets, enter into contracts and operate with legitimacy.
Tax Exemptions
The company can apply for Section 12A and 80G registration under the Income Tax Act, providing tax exemptions for the entity and its donors.
Credibility & Trustworthiness
Due to strict regulatory oversight, Section 8 Companies gain higher trust from donors, investors, government agencies and CSR partners.
Separate Legal Entity
The company’s legal identity is distinct from its members, meaning liabilities and legal matters are confined to the company itself.
Perpetual Succession
The entity continues to exist despite changes in directors or members, ensuring long-term continuity and mission fulfillment.
Access to Foreign Donations
It can apply for FCRA registration to legally receive foreign contributions, opening up global funding avenues.
Limited Liability
Members’ personal assets are protected; their liability is limited to their shareholding or guarantee amount.
Eligibility Criteria
- At least 2 directors (for a private company) or 3 directors (for a public company)
- Minimum 2 shareholders (can be the same as the directors)
- At least one director must be an Indian resident
- The entity must be formed for a charitable or not-for-profit objective
- Profits must be reinvested in the mission and not distributed to members
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Documents Required
Directors & Shareholders
Registered Office
Additional Documents
Steps for Getting Registration
Step 1
Obtain Digital Signature (DSC) for all proposed directors
Step 2
Apply for Name Approval through MCA (using RUN form)
Step 3
Prepare MOA & AOA aligned with charitable objectives
Step 4
File SPICe+ Form (INC-32) with MCA, along with necessary attachments
Step 5
Apply for Section 8 License (Form INC-12) with supporting declarations
Step 6
Receive Incorporation Certificate with a unique CIN and license number
Step 7
Apply for PAN, TAN and optionally 12A & 80G registration
FAQ
Can a Section 8 Company make profits?
Is a Section 8 Company better than a Trust or Society?
Can foreigners be directors or members?
Can Section 8 Companies receive foreign donations?
What is the minimum capital required?
Can a Section 8 Company convert into a regular company?
Are audits mandatory for Section 8 Companies?
Can a Section 8 Company issue shares?
What is the validity of the Section 8 license?
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