Section 8 Company Registration in India — Complete Guide
A Section 8 Company is a trusted legal form for non-profit organisations in India, registered under the Companies Act, 2013. Designed for charitable, educational, social, cultural and environmental objectives, it reinvests any income back into its mission rather than distributing profits to members.
Section 8, Companies Act, 2013
Credibility, 12A & 80G tax benefits, CSR access
DSC → DIN → Name reservation → SPICe+ → INC license → Incorporation
What is a Section 8 Company?
A Section 8 Company is incorporated with a primary objective to promote charitable causes (education, research, social welfare, environment, arts, sports, etc.). It is prohibited from distributing profits as dividends and must apply surplus funds to advance its objectives.
Features of a Section 8 Company
- Separate legal entity — distinct from founders and members.
- No profit distribution — surplus reinvested into objectives.
- Limited liability — members’ liability limited.
- Tax benefits — eligible for 12A and 80G subject to conditions.
- Government & donor confidence — preferred for grants, CSR and foreign funding.
Common Objectives
- Education, skill development and research
- Art, culture, literature and sports promotion
- Healthcare and medical relief
- Environmental protection and sustainability
- Social welfare and poverty alleviation
Legal Framework
- Companies Act, 2013 — Section 8
- Companies (Incorporation) Rules, 2014
- Income Tax Act, 1961 — 12A & 80G benefits
- FCRA, 2010 — for receiving foreign contributions
Advantages
- Higher credibility compared to trusts/societies
- Eligibility for CSR funding and grants
- Perpetual succession and separate legal identity
- No minimum capital requirement
- Tax exemptions (subject to approvals)
Eligibility Criteria
- Minimum directors: 2 (private) / 3 (public)
- Minimum members: 2 (private) / 7 (public)
- At least one director must be resident in India
- Objects must be charitable / non-profit
- Profits must be applied only for objectives
Step-by-Step Registration Process
- Obtain DSC — Digital Signature Certificates for proposed directors.
- Apply for DIN — Director Identification Numbers for directors.
- Name reservation — RUN or via SPICe+ (choose appropriate words e.g., Foundation, Forum).
- Draft MOA & AOA — clearly state non-profit objects and governance rules.
- File SPICe+ — attach MOA, AOA, Form INC-14 (CA declaration), INC-15, and office proof.
- Central government license — INC-16 / INC-17 issued after verification.
- Certificate of incorporation — CIN is issued on approval.
Post-Incorporation Compliances
- Apply for PAN & TAN
- Register for 12A & 80G (Income Tax exemptions)
- Apply for FCRA if accepting foreign funds
- Annual ROC filings (AOC-4, MGT-7)
- Bookkeeping, audits and statutory compliances
Tax Benefits
- 12A registration — income tax exemptions for charitable activities.
- 80G certificate — donor tax deductions for qualifying donations.
- GST — certain charitable activities may be exempt; check GST rules.
Challenges
- Extensive documentation and procedural formalities
- Higher compliance burden (ROC filings, audits)
- Greater scrutiny by MCA & tax authorities
- Need for professional certifications (CA/CS/Advocate)
Section 8 Company vs Trust vs Society
| Basis | Section 8 Company | Trust | Society |
|---|---|---|---|
| Governing law | Companies Act, 2013 | Indian Trusts Act (varies) | Societies Registration Act |
| Legal recognition | High | Moderate | Moderate |
| Compliance | High (ROC, audit) | Low | Moderate |
| Preferred by CSR | Yes | Rare | Rare |
Government Schemes & Funding
- CSR funds (Companies Act, 2013)
- National CSR Exchange Portal
- NITI Aayog NGO Darpan registration
- FCRA for foreign contributions
- Central & state grant-in-aid schemes
Conclusion & How RegistrationMART Helps
Section 8 Company registration offers credibility, tax benefits and better access to CSR and grant funding, making it the preferred choice for many NGOs and non-profit initiatives. Although the process requires careful documentation and ongoing compliance, professional assistance helps streamline applications and post-incorporation needs.
RegistrationMART provides end-to-end support — drafting MOA/AOA, filing SPICe+, obtaining licenses, and handling 12A, 80G and FCRA procedures so you can focus on impact rather than paperwork.
