In India, when individuals or groups come together with a vision to promote social welfare, charity, education, art, science, or any other noble cause — they often choose to form a Section 8 Company. This type of company is ideal for non-profit organizations that want to operate with transparency, credibility, and legal recognition.
In this guide, we’ll walk you through everything you need to know about Section 8 Company Registration in India — its meaning, benefits, eligibility criteria, registration process, required documents, and more.
What is a Section 8 Company?
A Section 8 Company is a legal entity registered under Section 8 of the Companies Act, 2013. The purpose of such companies is to promote charitable objectives like education, social welfare, environment protection, science, sports, art, and other activities that contribute to the betterment of society.
Unlike regular private or public limited companies, a Section 8 Company does not distribute its profits to shareholders or members. Instead, the profits are reinvested in furthering the company’s objectives.
In short, it’s a non-profit organization (NPO) that enjoys the same privileges as other companies, but with an aim focused on social good rather than profit-making.
Key Features of Section 8 Company
Here are some distinctive features that make a Section 8 Company stand apart from other types of entities:
Charitable Objective – The company must be established with a clear purpose to promote charity, art, science, sports, education, research, or any other social objective.
Profit Reinvestment – All income and profits must be used to achieve the company’s stated objectives.
Limited Liability – Members have limited liability protection just like in a private limited company.
No Minimum Capital Requirement – There is no minimum capital requirement for Section 8 Company registration.
Separate Legal Entity – The company exists as a separate legal entity from its members and can own assets or property in its own name.
Tax Benefits – Section 8 Companies can apply for various tax exemptions under the Income Tax Act, including 12A and 80G registration.
High Credibility – Registered Section 8 Companies have higher trust and credibility compared to informal NGOs or societies.
Eligibility Criteria for Section 8 Company Registration
Before applying for Section 8 Company registration, you must ensure that your organization meets the basic eligibility requirements:
The company must have a charitable or non-profit objective.
At least two directors (for a private company) or three directors (for a public company) are required.
The company must have a registered office address in India.
The organization’s income and profits should be solely used for promoting its objectives.
No dividend or profit distribution is allowed among members.
If these conditions are satisfied, you’re eligible to apply for Section 8 Company registration in India.
Benefits of Section 8 Company Registration
Registering as a Section 8 Company offers several advantages that go beyond just legal recognition:
1. Legal Status and Perpetual Existence
A Section 8 Company enjoys a separate legal identity, meaning it can own property, enter into contracts, and sue or be sued in its own name. The company’s existence isn’t affected by changes in membership or management.
2. Limited Liability
Members’ liability is limited to the amount they have invested or guaranteed, offering protection against personal financial loss.
3. Tax Exemptions
Once registered, Section 8 Companies can apply for 12A and 80G certification, which allows donors to claim tax deductions and helps the organization save on taxes.
4. Increased Credibility
Since Section 8 Companies are registered under the Ministry of Corporate Affairs (MCA), they are perceived as trustworthy entities by donors, government bodies, and other stakeholders.
5. Easy Transfer of Ownership
Ownership can be easily transferred by transferring shares, unlike in trusts or societies where it can be more complicated.
6. Access to Grants and Funding
Section 8 Companies are eligible to receive domestic and foreign donations and can apply for FCRA registration to receive foreign contributions.
7. No Minimum Capital
Unlike private or public limited companies, Section 8 Companies can be registered without any minimum capital requirement, making it easier for non-profits to start.
Step-by-Step Process for Section 8 Company Registration
Here’s a simplified breakdown of the Section 8 Company registration process in India:
Step 1: Obtain Digital Signature Certificate (DSC)
Every proposed director must obtain a Digital Signature Certificate (DSC) to sign documents electronically.
Step 2: Apply for Director Identification Number (DIN)
Once the DSC is obtained, apply for a Director Identification Number (DIN) for all directors through the MCA portal.
Step 3: Name Approval
Choose a unique name for your company that reflects its objectives. Submit the name through the SPICe+ Form (Part A) on the MCA website. The name should end with words like “Foundation,” “Association,” “Society,” “Federation,” “Institute,” or “Council.”
Step 4: Draft the MOA and AOA
The Memorandum of Association (MOA) and Articles of Association (AOA) are prepared, clearly defining the company’s objectives, operations, and rules.
Step 5: Apply for Incorporation
After the name is approved, fill out SPICe+ Form (Part B) for incorporation, attach all necessary documents, and submit it to the Registrar of Companies (ROC).
Step 6: Obtain the License
The ROC reviews the application, and if all details are accurate, issues a license under Section 8 of the Companies Act, 2013.
Step 7: Certificate of Incorporation
Once the license is granted, the ROC issues a Certificate of Incorporation, officially recognizing your Section 8 Company.
Documents Required for Section 8 Company Registration
To register a Section 8 Company, the following documents are required:
PAN Card of all directors and shareholders
Aadhaar Card or Passport
Passport-size photographs
Proof of registered office address (Electricity bill, Rent Agreement, or Ownership Proof)
Utility bill (not older than 2 months)
MOA and AOA drafts
Declaration by Directors (INC-14 and INC-15)
Consent to act as Director (DIR-2)
Having these documents prepared in advance ensures a smooth registration process.
Post-Registration Compliance for Section 8 Company
After registration, there are certain legal and compliance requirements to be fulfilled:
Obtain PAN & TAN – Apply for the company’s Permanent Account Number and Tax Deduction and Collection Account Number.
Open a Bank Account – Open a current account in the company’s name.
Apply for 12A & 80G Registration – To avail tax benefits for both the company and donors.
Maintain Proper Accounts & Records – Maintain accurate books of accounts and conduct annual audits.
File Annual Returns – File annual returns and financial statements with the ROC and Income Tax Department.
Complying with these legal requirements helps maintain transparency and avoids penalties.
Why Choose a Section 8 Company Over an NGO or Trust?
Many people wonder whether to register their organization as an NGO, Trust, Society, or Section 8 Company. Among all, Section 8 Company registration offers the highest level of transparency, credibility, and regulatory oversight.
Unlike Trusts and Societies, Section 8 Companies are governed by the Companies Act, 2013, which ensures better governance, structured reporting, and higher donor confidence.
If you’re planning to raise funds from government bodies, corporates (CSR), or foreign organizations, a Section 8 Company structure is the most trusted and effective route.
How PSR Compliance Can Help
PSR Compliance makes Section 8 Company registration easy and stress-free. Their expert team handles everything — from documentation and name approval to license issuance and post-registration compliances like 12A and 80G registration. With professional guidance and end-to-end support, PSR Compliance ensures your non-profit is registered quickly, legally, and without any Worries.
For more information, visit:
👉 https://www.psrcompliance.com/section-8-company-registration
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