What is a Section 8 company?
A Section 8 company is a non-profit incorporated under Section 8 of the Companies Act, 2013 to promote charitable, educational, scientific, religious or social-welfare objects. Any surplus from its activities must be applied to its objects and cannot be paid out as dividend to members. The name does not need to carry "Limited" or "Private Limited" — it can use words such as Foundation, Association, Council or Federation.
Who can register a Section 8 company? (eligibility)
You need a minimum of 2 directors (at least 1 resident in India) and a minimum of 2 shareholders. The directors and shareholders can be the same persons. The company must be formed for a lawful charitable or not-for-profit object.
What documents are required?
- DSC and DIN for the proposed directors
- Draft Memorandum of Association in Form INC-13 and Articles of Association
- Declaration by a professional in Form INC-14 and by the applicants in Form INC-15
- Identity and address proof of directors and subscribers
- Proof of registered office (utility bill plus rent agreement / NOC)
- Statement of three-year projected income and expenditure
What is the Section 8 registration process? (step by step)
- Obtain DSC for all proposed directors.
- Reserve the name via SPICe+ Part A.
- File SPICe+ Part B for incorporation along with the integrated Section 8 licence, attaching MoA/AoA, INC-14 and INC-15. A separate Form INC-12 is no longer required for new incorporations since 2019.
- File the linked AGILE-PRO-S for PAN, TAN, GST, EPFO, ESIC and bank account.
- The Registrar issues the Certificate of Incorporation together with the Section 8 licence.
How long does it take and what does it cost?
Section 8 incorporation generally takes about 10 to 15 working days, depending on document completeness and ROC approval. There is no MCA incorporation fee for a company with authorised capital up to Rs 15 lakh; the cost is mainly DSC, stamp duty (state-specific) and professional fees.
12A and 80G — the tax exemptions a Section 8 company needs
Register under Section 12A / 12AB so that the company's own income is exempt from income tax — provisional registration is granted for 3 years via Form 10A, followed by regular registration for 5 years via Form 10AB once activities have commenced. Register under Section 80G so that donors can claim a deduction for their contributions. 12A/12AB must be in place before applying for 80G. See Tax Advisory for filing support.
Ongoing compliance for a Section 8 company
A Section 8 company has the same governance and filing rhythm as a Private Limited company: annual filing of AOC-4 and MGT-7, income-tax return, statutory audit, and regular board / AGM meetings — plus the strict no-profit-distribution rule. See Annual Compliance — Pvt Ltd and Tax Advisory.
Section 8 company vs Trust vs Society
A Section 8 company offers the strongest credibility and governance of the three not-for-profit structures — it is MCA-regulated, recognised pan-India and preferred by CSR funders, foreign donors (FCRA) and institutional grantmakers. A Trust (Indian Trusts Act / state public trust laws) or Society (Societies Registration Act) is state-registered, lighter on compliance, but generally weaker on credibility for institutional funding.