What is a Section 8 Company?
A Section 8 Company (formerly Section 25 under Companies Act, 1956) is a type of company registered for promoting non-profit objectives such as commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, or similar activities.
Unlike other companies, Section 8 companies cannot distribute profits to members. All earnings must be used towards promoting the objectives. They enjoy many benefits including exemption from using "Limited" or "Private Limited" suffix and reduced stamp duty.
Benefits of Section 8 Company
No "Limited" Suffix
Can operate without adding "Limited" or "Private Limited" to the name.
Tax Exemptions
Eligible for 12A and 80G registration for tax benefits to donors.
Reduced Stamp Duty
Lower stamp duty on registration documents in most states.
High Credibility
More trusted than societies/trusts for receiving government grants and CSR funds.
Foreign Funding
Eligible for FCRA registration to receive foreign contributions.
Limited Liability
Members have limited liability like any other company.
Requirements for Registration
Minimum 2 Directors
At least 2 directors required (one must be Indian resident)
Minimum 2 Members
For Private Section 8; 7 for Public Section 8 Company
Non-Profit Objective
Objects must be charitable, educational, or for social welfare
License from Central Government
Special license required under Section 8 before incorporation
No Profit Distribution
All income must be utilized for promoting the objects
Documents Required
For Directors/Members
- PAN Card
- Aadhaar Card / Passport
- Passport Size Photograph
- Address Proof (Utility Bill)
- Email ID & Mobile Number
- Declaration of non-conviction
For Registered Office
- Rent Agreement / Ownership Proof
- NOC from Property Owner
- Latest Utility Bill
- Property Tax Receipt
Registration Process
Obtain DSC & DIN
Digital Signature and Director ID for proposed directors
Name Reservation
Reserve unique name through RUN service (without Ltd. suffix)
Apply for License (INC-12)
File Form INC-12 with MoA, AoA, and estimated income/expenditure
License Approval
ROC reviews and issues Section 8 license (10-15 days)
SPICe+ Filing
File incorporation form with approved license
Certificate of Incorporation
Receive CoI with CIN, PAN, and TAN
Our Pricing
Standard
+ Govt Fees (excl. Digital Signature Certificate)
- Register your Section 8 company at Ministry of Corporate Affairs
- Drafting & Filing by CA/CS
- Expert advice by CA/CS
- MCA processing and CIN
- RD license
- Company PAN & TAN
- MOA & AOA
- Allotment of 2 DINs
- Estimated Income & Expenditure Account for the next 3years (mandatory for Sec-8 company registration)
- MCA annual return filing and DIR-3 Director KYC
Frequently Asked Questions
What is the difference between Section 8 Company, Trust, and Society?
Section 8 Company is governed by Companies Act with higher compliance but greater credibility. Trusts are governed by Trust Act and are easier to manage. Societies are registered under Societies Registration Act. Section 8 companies are preferred for receiving CSR funds and foreign donations.
Can Section 8 Company do business activities?
Section 8 Company can carry out business activities, but all profits must be applied towards promoting its charitable objects. No dividend or profit can be distributed to members.
What is 12A and 80G registration?
12A registration exempts the NGO from paying income tax on surplus. 80G registration allows donors to claim tax deduction on donations made to the NGO (50% or 100% of donation amount).
Can Section 8 Company receive foreign donations?
Yes, but FCRA (Foreign Contribution Regulation Act) registration is mandatory to receive foreign contributions. The company must be operational for at least 3 years before applying for FCRA.