For Charitable & Social Welfare

Section 8 Company Registration (NGO)

Register your Section 8 Company for non-profit activities like charity, education, social welfare, environment protection, and more. Enjoy tax benefits and credibility of a registered company.

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NGOs Registered
30-45
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Key Highlights

No Minimum Capital Requirement
Tax Exemptions under 12A & 80G
Limited Liability Protection
High Credibility for Fundraising

What is Section 8 Company?

A Section 8 Company is a special type of company registered under Section 8 of the Companies Act, 2013, formerly known as Section 25 Company. It is established for promoting charitable objects such as commerce, art, science, sports, education, research, social welfare, religion, charity, or protection of environment.

Unlike regular companies, Section 8 Companies operate on a non-profit basis. All income and profits must be applied towards promoting the objects of the company and cannot be distributed as dividends to its members. This makes it ideal for NGOs, charitable trusts, and social enterprises.

Section 8 Companies enjoy special privileges like exemption from using 'Limited' or 'Private Limited' in their name, making them appear more approachable for charitable activities. They also enjoy various tax benefits and can receive donations with tax exemption certificates.

Permitted Objects for Section 8 Company

Promotion of Commerce
Art & Culture
Science & Research
Sports & Games
Education & Training
Social Welfare
Religion & Charity
Environment Protection
Any Other Useful Object

Benefits of Section 8 Company

No Minimum Capital

Start with any amount - no capital requirement

Tax Exemptions

Eligible for 12A, 80G, and other tax benefits

Limited Liability

Members' personal assets are protected

High Credibility

Regulated by MCA, more trusted than trusts

No 'Limited' Suffix

Can use Foundation, Association, Forum, etc.

Separate Legal Entity

Can own property and enter contracts

Government Grants

Eligible for CSR funds and government schemes

Foreign Donations

Can receive FCRA funds after registration

Section 8 Company Registration Process

1

Obtain DSC & DIN

Apply for Digital Signature Certificate and Director Identification Number for all proposed directors

2

Name Reservation

Reserve unique name through RUN service (name should reflect charitable nature)

3

Draft MOA & AOA

Prepare Memorandum and Articles of Association with detailed charitable objects

4

Apply for License (INC-12)

Submit application to Regional Director for Section 8 license approval

5

License Approval

Regional Director reviews and issues license in Form INC-16

6

Incorporation (SPICe+)

File incorporation form with license to get Certificate of Incorporation

What You Get

Section 8 License (INC-16)
Certificate of Incorporation
Company PAN Card
Company TAN Number
Memorandum of Association (MOA)
Articles of Association (AOA)
Director Identification Numbers
Digital Signature Certificates
First Board Meeting Minutes
Statutory Registers
Compliance Calendar
12A & 80G Application Support

Section 8 Company vs Trust vs Society

FeatureSection 8TrustSociety
Governing LawCompanies ActTrust ActSocieties Act
Minimum Members2 (Pvt) / 7 (Pub)2 Trustees7 Members
Regulated ByMCA (Central)State Charity CommissionerRegistrar of Societies
CredibilityHighestMediumMedium
ComplianceModerateLowLow
Foreign FundsFCRA EligibleFCRA EligibleFCRA Eligible
Pan India OperationEasyState SpecificState Specific
DissolutionCourt OrderTrust DeedResolution

Tax Exemptions & Benefits

Section 12A Registration

Complete tax exemption on income of the NGO. All surplus income is exempt from tax when used for charitable purposes.

Section 80G Certificate

Donors get 50% or 100% tax deduction on their donations. This encourages more people to donate to your cause.

CSR Funding Eligibility

Section 8 Companies are eligible to receive Corporate Social Responsibility (CSR) funds from companies.

Government Grants

Eligible for various central and state government grants and schemes for social welfare activities.

Annual Compliance Requirements

Annual Return (MGT-7/MGT-7A)

Within 60 days of AGM

Filing of annual return with details of directors, members, and activities

Financial Statements (AOC-4)

Within 30 days of AGM

Balance sheet, income & expenditure account, and auditor's report

Income Tax Return

30th September

ITR-7 filing with details of income and charitable activities

Annual General Meeting

Within 6 months of year end

Mandatory AGM with members to approve accounts and elect directors

Board Meetings

Minimum 4 per year

At least one meeting every quarter with proper minutes

Why Register Section 8 Company with Saarthium?

Expert CA & CS Professionals
100% Online Process
Dedicated Relationship Manager
Complete MOA & AOA Drafting
License Application Support
12A & 80G Registration Assistance
Post-Registration Compliance Support
500+ NGOs Successfully Registered

Section 8 Company is Ideal For

Educational Institutions
Charitable Organizations
Social Welfare NGOs
Environmental Protection Groups
Healthcare & Medical Charities
Sports Promotion Bodies
Cultural & Art Foundations
Research Organizations
Religious & Spiritual Bodies
Women Empowerment NGOs
Child Welfare Organizations
Rural Development Groups

Important Points to Remember

⚠️

Profits cannot be distributed to members - must be used for charitable objects only

⚠️

Directors cannot receive remuneration beyond what is prescribed

⚠️

Alteration in MOA requires Central Government approval

⚠️

Section 8 license can be revoked if conditions are violated

⚠️

Conversion to regular company requires repayment of all tax benefits

⚠️

Annual compliance is mandatory to maintain active status

Quick Information

Processing Time30-45 Working Days
Documents Required
PAN Card of Directors
Aadhaar Card of Directors
Passport Size Photos
Address Proof of Directors
Registered Office Proof
NOC from Property Owner
Utility Bill (not older than 2 months)
Objects of the Company (Detailed)
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Frequently Asked Questions

What is a Section 8 Company?
A Section 8 Company is a non-profit organization registered under Section 8 of the Companies Act, 2013. It is formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, or any other useful object. All profits must be used for promoting objectives and cannot be distributed to members.
What are the minimum requirements for Section 8 Company?
For Section 8 Company registration, you need minimum 2 Directors and 2 Members (for Private Limited structure) or 3 Directors and 7 Members (for Public Limited structure). There is no minimum capital requirement. All directors must have DIN and DSC.
Can Section 8 Company receive donations?
Yes, Section 8 Companies can receive donations from individuals and organizations. With 12A and 80G registration, donors can claim tax exemption on their donations. Section 8 Companies can also receive foreign contributions after obtaining FCRA registration from Ministry of Home Affairs.
What are tax benefits for Section 8 Company?
Section 8 Companies enjoy various tax benefits including exemption from income tax under Section 12A, donors get 50% or 100% tax deduction under 80G, no stamp duty on MOA and AOA in many states, exemption from using 'Limited' or 'Private Limited' in name, and various government grants eligibility.
How long does Section 8 Company registration take?
Section 8 Company registration typically takes 30-45 working days as it requires license approval from Regional Director (RD) before incorporation. This is longer than regular company registration due to additional scrutiny of objects and promoters.
Can Section 8 Company be converted to regular company?
Yes, Section 8 Company can be converted to a regular company by repaying all tax benefits received, obtaining approval from Central Government, and amending MOA and AOA. However, this is rarely done as it defeats the purpose of formation.

Related Services

12A & 80G Registration

Get tax exemption benefits for your NGO and donors

Trust Registration

Alternative structure for charitable activities

FCRA Registration

Receive foreign contributions for your NGO

Ready to Register Your Section 8 Company?

Join 500+ NGOs and charitable organizations who trusted Saarthium for their Section 8 Company registration. Expert guidance for social impact.

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