Section 8 Company Registration

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Full Overview of Section 8 Company Registration in India

If you're planning to work for a social cause — whether it's education, healthcare, art, environment, or community welfare — a Section 8 Company is one of the most credible and structured ways to do it in India. It is a legal form of organization recognized under the Companies Act, 2013, and is specifically designed for non-profit purposes.

Unlike a trust or a society , a Section 8 Company comes with the reliability of being registered under the Ministry of Corporate Affairs (MCA). It has a well-defined legal structure, limited liability for its members, and enjoys several tax benefits — making it the preferred choice for NGOs, foundations, charitable institutions, and social enterprises across India.

At LegalXCode, we simplify the entire Section 8 Company Registration process for you. From preparing your documents to obtaining the license from the Central Government — we handle it all, so you can focus on your mission.

2

Minimum Directors Required

30+

Days Average Processing Time

₹0

Minimum Paid-Up Capital

80G

Tax Exemption Eligibility

What is a Section 8 Company?

A Section 8 Company is a type of company incorporated under Section 8 of the Companies Act, 2013, with the primary objective of promoting charitable purposes such as:

  • Promotion of commerce, art, science, sports, education, research
  • Social welfare activities and environmental protection
  • Protection of religion and charitable causes
  • Any other purpose approved by the Central Government

The most important aspect of a Section 8 Company is that its profits cannot be distributed among its members or directors. All income and profits must be applied towards promoting the stated objectives of the company. This is what separates it from regular private or public limited companies.

Earlier known as Section 25 Company under the old Companies Act of 1956, the Section 8 Company format is now widely used by NGOs, foundations, and welfare organizations across India as it provides greater credibility, transparency, and accountability compared to a Trust or Society.

Benefits of Section 8 Company Registration in India

Registering as a Section 8 Company gives your non-profit a legal edge and opens doors to multiple benefits that Trusts and Societies don't always enjoy. Here's why thousands of NGOs in India choose this structure:

🏛️

Recognized Legal Entity

A Section 8 Company is a separate legal entity, meaning it can own property, enter contracts, and sue or be sued in its own name.

🛡️

Limited Liability Protection

Members and directors have limited liability. Their personal assets are protected even if the company faces financial difficulties.

💰

Tax Exemptions (80G & 12A)

Section 8 Companies can register under 80G and 12A of the Income Tax Act, making donations tax-deductible for donors and income tax-exempt for the company.

🌐

No Minimum Capital Required

Unlike private limited companies, there is no requirement for a minimum paid-up capital to register a Section 8 Company.

🤝

Credibility & Trust

Being registered under MCA gives your NGO significantly more credibility than a Trust or Society — which matters when approaching donors, CSR partners, and government bodies.

📦

Eligibility for Government Grants

A registered Section 8 Company becomes eligible to apply for grants from government departments, foreign funding (FCRA), and CSR contributions from corporates.

♾️

Perpetual Succession

The company continues to exist even if members change or pass away. Its continuity is not dependent on any single individual.

📉

Lower Stamp Duty

Section 8 Companies enjoy reduced or waived stamp duties on various instruments compared to other types of companies — saving you money from the start.

Who Can Register

Eligibility Criteria for Section 8 Company

Before applying, confirm your organization meets all conditions set by the Ministry of Corporate Affairs.

01
👥

Minimum Directors

A minimum of 2 Directors for a private structure, or 3 Directors + 7 Members for a public company structure.

Mandatory
02
🇮🇳

Indian Resident Director

At least one Director must be an Indian resident — staying in India for at least 182 days in the previous calendar year.

Mandatory
03
🎯

Charitable Objective

The company's stated purpose must be charitable, social, or non-profit in nature — education, healthcare, art, science, or environmental protection.

Mandatory
04
🚫

No Profit Distribution

Profits cannot be distributed to members or directors. All surplus income must be reinvested exclusively toward the company's stated objectives.

Mandatory
05
🪪

Valid DIN for All Directors

Each director must hold a valid Director Identification Number (DIN) issued by the Ministry of Corporate Affairs before or during incorporation.

Required
06
🏢

Registered Office Address

The company must have a valid registered office address in India, supported by proof of address and an NOC from the property owner if the premises are rented.

Required
07
💸

No Minimum Capital

There is no mandatory paid-up capital requirement — but your funding plan and projected income & expenditure for 3 years must be credible and clearly documented.

Flexible
08
🔏

Digital Signature Certificate

At least one director must hold a valid Class 3 DSC (Digital Signature Certificate) for signing online MCA forms during the registration process.

Required

Documents Required for Section 8 Company Registration in India

Preparing the right documents upfront can save significant time and effort. Here is a complete checklist of all documents you need to submit for Section 8 Company Registration:

# Document Who It Applies To
1 PAN Card (self-attested copy) All Directors & Members
2 Aadhaar Card / Voter ID / Passport (any one) All Directors & Members
3 Passport-size Photograph (recent) All Directors
4 Electricity Bill / Water Bill / Gas Bill (not older than 2 months) Registered Office Proof
5 No Objection Certificate (NOC) from the property owner Registered Office (if rented)
6 Rent Agreement (if office is rented) Registered Office
7 Memorandum of Association (MOA) Company Formation
8 Articles of Association (AOA) Company Formation
9 Declaration by Directors in Form INC-14 All Directors
10 Estimated income & expenditure for next 3 years Management
11 DIN (Director Identification Number) of all directors All Directors
12 DSC (Digital Signature Certificate) of at least one Director Authorized Director

* Our team at LegalXCode will guide you on preparing each document correctly to avoid rejections.

Step-by-Step Process for Section 8 Company Registration

The Section 8 Company Registration Process in India is handled through the MCA portal and involves multiple stages of filing and approval. Here's how it works, step by step:

1

Obtain Digital Signature Certificate (DSC)

All proposed directors must obtain a Class 3 DSC from a government-approved certifying authority. This is required for online signing of MCA forms.

2

Apply for Director Identification Number (DIN)

Each director must have a unique DIN issued by MCA. This can be obtained through the SPICe+ form at the time of incorporation or separately beforehand.

3

Name Reservation via RUN (Reserve Unique Name)

Submit up to 2 proposed company names through the MCA RUN service or within SPICe+ Part A. The name must reflect the company's charitable nature and end with words like "Foundation," "Association," "Society," etc.

4

Draft MOA & AOA

Prepare the Memorandum of Association (MOA) and Articles of Association (AOA), clearly defining the company's objectives, governance structure, and rules. This is a critical step — our experts ensure your MOA aligns with Section 8 requirements.

5

File SPICe+ Form with MCA

Submit the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form along with INC-14 (declaration by professionals), INC-15 (declaration by promoters), and all supporting documents.

6

License Approval from Central Government

Unlike other company types, Section 8 Companies require a special license from the Central Government (via Regional Director or MCA). The Registrar of Companies (ROC) reviews the application and issues the license upon satisfaction.

7

Certificate of Incorporation

Once the license is granted and ROC approves the application, a Certificate of Incorporation (along with CIN, PAN, and TAN) is issued. Your Section 8 Company is now legally registered!

8

Open a Bank Account & Start Operations

After incorporation, open a current bank account in the company's name and apply for 12A and 80G registrations to unlock tax benefits for your donors and the company.

Section 8 Company Compliance

Registration is just the beginning. A Section 8 Company must follow regular compliance obligations under the Companies Act, 2013 and Income Tax Act. Non-compliance can lead to heavy penalties, suspension of the license, or even dissolution of the company. Here's what you need to stay on top of:

Annual General Meeting (AGM)

Hold an AGM every year within 6 months from the close of the financial year (i.e., before 30th September).

Board Meetings

Conduct at least 2 Board Meetings every year, with a gap of not more than 90 days between consecutive meetings.

Annual Return (MGT-7)

File the Annual Return with MCA within 60 days of the AGM every financial year.

Financial Statements (AOC-4)

File audited financial statements including Balance Sheet and P&L with the ROC within 30 days of the AGM.

Income Tax Return Filing

File ITR annually. Companies registered under 12A are exempt from income tax on surplus income used for charitable purposes.

Statutory Audit

Accounts must be audited by a qualified Chartered Accountant every year before filing financial statements.

Director KYC (DIR-3)

Every director must complete their annual KYC with MCA by 30th September of each year.

FCRA Registration (if applicable)

If your NGO receives foreign donations, you must also obtain FCRA registration from the Ministry of Home Affairs.

LegalXCode offers ongoing compliance management packages so your Section 8 Company always stays on the right side of the law — without you having to track every deadline.

Section 8 Company Government Grants & Tax Benefits

One of the biggest advantages of operating as a registered Section 8 Company is access to a wide range of government grants, CSR funding, and income tax exemptions. Here's what your non-profit can benefit from:

  • 12A Registration: Once registered under Section 12A of the Income Tax Act, the company's income is exempt from tax — as long as it is used for charitable purposes.
  • 80G Certification: Donors who contribute to a 80G-registered Section 8 Company can claim a 50% deduction on their donation amount from their taxable income — a major incentive for corporate and individual donors.
  • CSR Funding: Under the Companies Act, large corporates are required to spend 2% of their net profits on CSR activities. Section 8 Companies are eligible recipients of this funding.
  • Government Grants: Central and state government bodies offer grants to NGOs working in areas like education, rural development, healthcare, and women empowerment. A Section 8 Company is well-positioned to apply for these.
  • FCRA Approval: With FCRA registration, your Section 8 Company can legally receive foreign contributions and donations from international organizations and individuals.
  • Stamp Duty Exemption: Section 8 Companies are often exempted from stamp duty on registration documents and instruments — varying by state.
  • Priority in Government Tenders: Government departments often give preference to registered Section 8 Companies when awarding social sector tenders and welfare projects.

FAQs on Section 8 Company Registration

What is the minimum number of members required to start a Section 8 Company? +
A minimum of 2 Directors are required to incorporate a Section 8 Company with a private company structure. For a public company structure, at least 3 directors and 7 members are needed. At least one director must be an Indian resident. There is no minimum number of shareholders, and a Section 8 Company does not necessarily need to have share capital.
How long does it take to register a Section 8 Company? +
The typical timeline for Section 8 Company Registration in India ranges from 30 to 45 working days, depending on how quickly documents are prepared and the time taken by the MCA/ROC to process and approve the application. The process can take longer if there are queries or objections raised by the authorities. With LegalXCode handling your application, we work to minimize delays at every step.
Is Section 8 Company registration mandatory for NGOs? +
No, registration as a Section 8 Company is not mandatory for all NGOs. NGOs can also operate as Trusts or Societies. However, Section 8 Company registration is strongly recommended because it provides greater legal credibility, better governance, limited liability for members, and makes your organization more attractive to donors and government bodies. It is also easier to attract CSR funding and international grants with a Section 8 Company structure.
Does a Section 8 Company require annual compliance? +
Yes. A Section 8 Company must fulfill several annual compliance obligations including holding an AGM, conducting Board Meetings, filing Annual Returns (MGT-7), Financial Statements (AOC-4), and Income Tax Returns. Non-compliance can result in fines and penalties and may even lead to the cancellation of your Section 8 license. LegalXCode provides complete annual compliance support to keep your company in good standing throughout the year.
What are the Section 8 Company Registration Fees? +
The Section 8 Company Registration Fees include government filing fees payable to MCA, professional charges for drafting MOA/AOA, and DSC costs. Government fees are typically lower for Section 8 Companies compared to regular companies. Our professional fees at LegalXCode are transparent and affordable — contact us for a detailed quote tailored to your specific requirements and state of registration.
Can a Section 8 Company be converted into a normal company? +
Yes, a Section 8 Company can be converted into a regular company (private limited or public limited), but only with the prior approval of the Central Government (Regional Director). The process involves a special resolution and compliance with specific MCA provisions. However, this is not a simple or commonly undertaken process and requires expert legal assistance.
What is the difference between a Section 8 Company, a Trust, and a Society? +
All three are used for non-profit purposes, but they differ significantly. A Trust is governed by the Indian Trusts Act and is suitable for smaller, family-driven charitable work. A Society is registered under the Societies Registration Act and is governed by its members through a Memorandum. A Section 8 Company is governed by the Companies Act, 2013, has a more formal corporate structure, is subject to greater regulatory oversight, and is significantly more credible in the eyes of donors, banks, and government bodies. Section 8 Companies also have perpetual succession and limited liability — advantages that Trusts and Societies may not always offer.

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