Section 8 Company Registration in India: A Complete Guide for NGOs & Non-Profits
If you’re looking to make a positive social impact through a non-profit entity, Section 8 company registration in India is one of the most structured and legally sound ways to do it. Regulated under the Companies Act, 2013, a Section 8 company is formed with the objective of promoting commerce, arts, science, sports, education, research, social welfare, or charity. Unlike regular companies, these entities do not pay dividends to their members and reinvest profits towards their mission.
What Is a Section 8 Company?
A Section 8 Company is a not-for-profit organisation that enjoys legal status similar to other incorporated entities but is dedicated solely to charitable or social objectives. Registering a Section 8 company in India enables founders to gain credibility, transparency, and several tax benefits. It is best suited for NGOs, trusts, societies, and philanthropic entrepreneurs.
How to Check Name Availability for Section 8 Company in India?
Before registering a Section 8 company in India, the proposed name must be approved by the Ministry of Corporate Affairs (MCA). You can check the availability through the MCA’s official website. The name must include terms that reflect its non-profit status and cannot be misleading or similar to an already registered organisation.
Step-by-Step Process for Section 8 Company Registration in India
Obtain Digital Signature Certificate (DSC)
Each director must have a valid DSC for signing digital forms.
Director Identification Number (DIN)
Apply for a DIN using the SPICe+ form.
Name Approval via RUN Facility
Use the Reserve Unique Name (RUN) service to get approval for the company name.
Draft MOA and AOA
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) aligning with the non-profit objectives.
File the SPICe+ Form
The integrated SPICe+ form includes PAN, TAN, and incorporation details.
Apply for 12A and 80G Certificates
For income tax exemptions, apply for 12A and 80G registrations post-incorporation.
What Are the Benefits of Section 8 Company Registration?
- Tax Exemptions: Donations made to Section 8 companies are eligible for tax deductions under Section 80G.
- Separate Legal Identity: Offers credibility and accountability in the eyes of law and donors.
- No Minimum Capital Requirement: Flexibility in terms of capital structure.
- Perpetual Succession: Continued existence even in the case of a founder’s exit or death.
- Grants and Funding Eligibility: Easier access to national and international funding sources.
Legal Compliances & Documentation Requirements
Registering a Section 8 company in India entails specific legal obligations and documents:
Mandatory Documents:
- Identity and address proof of directors
- PAN cards of all promoters
- Recent passport-sized photographs
- Rent agreement (if office space is rented)
- No Objection Certificate (NOC) from property owner
- Utility bill as address proof of registered office
- Draft MOA and AOA
Compliance Post Registration:
- Maintain books of accounts
- Conduct annual general meetings
- File annual returns with ROC
- Audit financial statements
What Are the Different Types of Companies in India?
While Section 8 companies are best suited for charitable causes, it helps to understand how they differ from other types:
- Private Limited Company: Profit-driven with limited liability.
- Limited Liability Partnership (LLP): Combines benefits of partnership and limited liability.
- One Person Company (OPC): Sole proprietorship with corporate advantages.
- Public Limited Company: Suitable for large-scale business operations.
Each model serves unique needs and can be used for company setup in India depending on the business objective.
Why Choose a Section 8 Company Over a Trust or Society?
While trusts and societies are also common forms of non-profits in India, Section 8 companies offer better regulatory oversight, higher transparency, and stronger governance. This structure is particularly appealing to international donors and grant-making bodies who value accountability and formal registration.
Ready to Launch Your Section 8 Company in India?
Starting your journey to register a Section 8 company in India can be smooth and hassle-free with the right guidance. Whether you’re an entrepreneur, philanthropist, or NGO professional, professional assistance can streamline the entire process—from documentation to post-registration compliance.
Need help with Section 8 company registration India? Contact our experts today to simplify your registration process and bring your social vision to life. For assistance with registering a Section 8 company in India, our team offers end-to-end support for legal documentation, MCA compliance, and tax benefits. Let us help you focus on your mission while we handle the paperwork.
Frequently Asked Questions (FAQs)
A Section 8 company can earn profits but must reinvest them in furthering its objectives. No dividends can be paid to members.
A minimum of two directors is required for Section 8 companies.
Yes, a registered office address is essential at the time of incorporation.
On average, it takes 15–20 working days to complete the process if all documents are in order.
Yes, but they must be registered under the Foreign Contribution Regulation Act (FCRA) to receive overseas donations.