What is Section 8 Company Registration?

A Section 8 Company is a special category of non-profit organization in India, registered under the Companies Act, 2013. Its primary objective is to promote charitable causes such as education, art, commerce, social welfare, science, research, religion, or environmental protection—without the intent of profit-making.

What makes it unique? A Section 8 Company enjoys legal identity, tax exemptions, and is more credible than other NGOs like trusts or societies. It must apply its income or donations solely towards promoting its charitable objectives. It cannot pay dividends or profits to its members.

This form of registration is ideal for NGOs, foundations, social enterprises, and charitable trusts that want to operate with high accountability and attract government or foreign funding.

✅ Benefits of Section 8 Company Registration
🎯 Why choose Section 8 for your charitable or non-profit organization:

1️⃣ Enjoys corporate legal status and limited liability
2️⃣ Eligible for tax exemptions under Sections 12AA and 80G of the Income Tax Act
3️⃣ Builds credibility and trust among donors and stakeholders
4️⃣ Can receive foreign donations after FCRA registration
5️⃣ No need for minimum capital investment
6️⃣ Greater transparency and compliance boosts donor confidence
7️⃣ Eligible for CSR funding from companies

📑 Documents Required for Section 8 Company Registration
📂 Gather these important documents to initiate the process:

1️⃣ 🆔 PAN Card of Directors – Identity proof of all proposed directors
2️⃣ 🏠 Address Proof – Aadhaar/Passport/Driver's License/Voter ID
3️⃣ 🖼️ Passport-sized Photos – Recent photographs of all directors
4️⃣ 🧾 Utility Bill – Latest electricity/water bill for registered office address
5️⃣ 🏢 Office Rental Agreement – If premises are rented
6️⃣ 📃 MOA & AOA – Drafted specifically for charitable objectives
7️⃣ 📝 Declaration by Directors – Affidavit confirming non-profit objectives
8️⃣ 🪪 Digital Signature Certificates (DSC) – For filing e-forms

👤 Eligibility for Section 8 Company Registration
🧾 Who can apply and under what conditions:

• Minimum 2 Directors and 2 shareholders (can be the same individuals)

• At least one director must be a resident of India

• The objective must strictly be non-profit and charitable

• No profit can be distributed to members—must be reinvested

• Must get license from the Central Government (MCA) before incorporation

• Must clearly state intent to apply income only for promoting the objects

🔄 Process of Getting Section 8 Company Registration
🔁 Step-by-step breakdown of the registration journey:

1️⃣ Obtain DSC & DIN – Apply for Digital Signature Certificates and Director Identification Numbers
2️⃣ Name Reservation (SPICe+) – Reserve your company name through MCA portal
3️⃣ Draft MOA & AOA – Tailor the Memorandum & Articles of Association for your non-profit objectives
4️⃣ Apply for Section 8 License – Submit Form INC-12 to the MCA with necessary declarations
5️⃣ File Incorporation Forms – Submit SPICe+ Part B with MOA, AOA, declarations, and license copy
6️⃣ Receive COI – If approved, the MCA issues the Certificate of Incorporation with Section 8 status

⏱️ Timeline for Section 8 Company Registration
⏳ Approximate time required:

• The process typically takes 20–30 working days, depending on:

  • Name approval and document readiness

  • Government verification and approval of license

  • Speed of digital signature issuance

❓ Frequently Asked Questions (FAQs) about Section 8 Company Registration

1️⃣ Can a Section 8 Company make profits?
Yes, but it must reinvest all profits into its charitable objectives—no distribution to members.

2️⃣ Is Section 8 better than a trust or society?
Yes, it offers greater legal recognition, transparency, and credibility—especially for fundraising.

3️⃣ Can foreigners be directors in a Section 8 Company?
Yes, but at least one director must be a resident Indian.

4️⃣ What kind of activities qualify under Section 8?
Educational, scientific, artistic, environmental, religious, and other charitable purposes.

5️⃣ Is it mandatory to have an office address?
Yes, a registered office is required for official communication and legal compliance.

6️⃣ Can a Section 8 Company receive foreign funds?
Yes, after obtaining FCRA registration from the Ministry of Home Affairs.

7️⃣ What are the compliance requirements post-registration?
Annual ROC filing, income tax return, and audits are mandatory.

8️⃣ Do Section 8 Companies get tax exemptions automatically?
No, separate applications for 12A and 80G registration are required.

9️⃣ Is stamp duty applicable during registration?
Section 8 Companies are generally exempt from stamp duty on MOA & AOA.

🔟 Can the objective of a Section 8 Company be changed?
Yes, but with prior approval from the MCA and subject to certain conditions.