Section 8 company registration in India is the legally recognized process of incorporating a non-profit organization under the Companies Act, 2013. It is ideal for individuals and organizations aiming to promote education, charity, science, religion, arts, or social welfare. A Section 8 company enjoys a distinct legal identity, income tax benefits, and higher credibility compared to other non-profit structures. At CharteredZone, we offer complete end-to-end Section 8 company incorporation services—from name approval to license procurement and final registration.
What is Section 8 Company Registration in India?
A Section 8 company is a type of non-profit organization registered under Section 8 of the Companies Act, 2013, governed by the Ministry of Corporate Affairs (MCA). It is incorporated with the objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection.
Unlike other companies, a Section 8 company does not distribute profits or dividends to its members — all surplus income is applied strictly towards promoting its stated objectives. It is the most robust and credible structure for establishing an NGO or social enterprise in India.
Key Features of a Section 8 Company
Under Companies Act
Registered under the Companies Act, 2013 and regulated strictly by the Ministry of Corporate Affairs (MCA).
Separate Legal Identity
Operates as a separate legal entity. It can own property, sue, and be sued in its own corporate name.
No Profit Distribution
All profits or donations must be reinvested to achieve the non-profit's goals. No dividends are paid to members.
Limited Liability
The personal assets of the directors and members are completely protected from the company's liabilities.
No Minimum Capital
There is no statutory minimum paid-up capital requirement to form a Section 8 Company.
Tax Deductions
Eligible for 12A and 80G registrations, allowing donors to claim tax deductions on their contributions.
Comparison: Trust vs Society vs Section 8 Company
Choosing the right non-profit structure is critical. Here is a clear comparison between the three main NGO options in India:
| Parameter |
Charitable Trust |
Registered Society |
Section 8 Company |
| Governing Law |
Indian Trusts Act, 1882 |
Societies Registration Act, 1860 |
Companies Act, 2013 |
| Registration Authority |
Sub-Registrar of the state |
Registrar of Societies (state-specific) |
Ministry of Corporate Affairs (MCA) |
| Minimum Members |
2 Trustees |
7 Members (8 for national) |
2 Directors / Members |
| Legal Status |
Not a separate legal entity |
Separate legal entity (limited) |
Separate legal entity (high credibility) |
| Foreign Funding (FCRA) |
Eligible |
Eligible |
Eligible |
| Compliance Level |
Less Stringent |
Moderate |
High (MCA governance) |
| Overall Credibility |
Moderate |
Moderate |
High (preferred by corporate donors) |
Advantages of a Section 8 Company
Registering a Section 8 company in India offers significant legal, financial, and reputational advantages for non-profit initiatives:
- Tax Exemptions: Eligible for income tax exemption under Section 12A. Donors can claim tax deductions under Section 80G on their contributions.
- Separate Legal Entity & Property: Can buy, hold, and sell commercial/residential properties in the company name.
- High Corporate Donors Preference: Corporate donors prefer to fund Section 8 companies because of the strict MCA compliance and higher transparency, qualifying them for CSR funding.
- Perpetual Succession: The company continues to exist indefinitely, irrespective of changes in directors, members, or trustees.
- Stamp Duty Exemption: Exempted from stamp duty on registration documents in many Indian states.
Minimum & Mandatory Requirements
| Requirement |
Details |
| Minimum Directors |
2 Directors (at least one must be a Resident of India). |
| Minimum Members |
2 Members (members can be the same individuals as the directors). |
| Section 8 License |
Obtaining a Section 8 License from the MCA (Form INC-12) is mandatory. |
| Directors Eligibility |
Directors must be natural persons, 18+ years old, of sound mind, and must possess a valid DIN & DSC. |
| Allowed Objectives |
Promotion of arts, science, commerce, charity, sports, education, research, religion, social welfare, or environmental protection. |
Step-by-Step Registration Process
The registration of a Section 8 company is managed entirely online through the MCA portal via SPICe+:
Step 1 – Procure DSC and DIN for Directors
Apply for Digital Signature Certificates (DSC) for all proposed directors and subscribers. Director Identification Numbers (DIN) will be allocated during incorporation.
Step 2 – MCA Name Approval via RUN
Submit a name reservation application via the Reserve Unique Name (RUN) service. The name must reflect the non-profit purpose (usually ending with Foundation, Association, Society, etc., but does not require the words "Limited").
Step 3 – Draft MOA & AOA and Apply for License (Form INC-12)
Draft the Memorandum of Association (MOA) and Articles of Association (AOA) clearly defining the charitable objects. File Form INC-12 to obtain the Section 8 License (Form INC-16) from the MCA.
Step 4 – File SPICe+ Incorporation Application
File the SPICe+ form on the MCA portal along with signed declarations, registered office address proofs, and director identity documents.
Step 5 – Receive Certificate of Incorporation & PAN/TAN
Upon successful verification of all forms, the Registrar of Companies (ROC) issues the Certificate of Incorporation with a CIN. PAN and TAN cards are issued simultaneously.
Cost & Registration Timeline
Estimated Timelines
| Stage |
Estimated Time |
| DSC Procurement |
1 – 2 Working Days |
| MCA Name Approval |
2 – 3 Working Days |
| License Approval (INC-12) |
7 – 10 Working Days |
| SPICe+ Incorporation |
3 – 5 Working Days |
| Total Time |
15 – 25 Working Days |
Registration Cost Structure
| Fee Component |
Estimated Cost |
| DSC & DIN (2 Directors) |
₹2,500 – ₹3,000 |
| MCA Name Approval (RUN) |
₹1,000 |
| License Fee & Filing (INC-12) |
₹2,000 – ₹5,000 |
| ROC Incorporation Form Fees |
₹2,000 – ₹5,000 |
| Professional Fees (CharteredZone) |
₹5,000 – ₹10,000 |
Mandatory Compliances & Penalty Prevention
To retain its legal status and tax exemptions, a Section 8 company must comply with periodic filing rules:
| Compliance Event |
Due Date / Timeline |
Form / Filing |
| Annual General Meeting (AGM) |
Within 6 months of financial year-end |
Mandatory annual meeting of members |
| Financial Statements Filing |
Within 30 days of the AGM |
Form AOC-4 |
| Annual Return Filing |
Within 60 days of the AGM |
Form MGT-7 |
| Director KYC |
On or before 30th September every year |
Form DIR-3 KYC |
| Income Tax Return |
On or before 31st October (audit cases) |
ITR-7 (filed under individual company PAN) |
| Statutory Audit |
Completed before the AGM annually |
Mandatory Audit by a CA |
Warning on Non-Filing: Failure to file AOC-4 or MGT-7 attracts a penalty of ₹100 per day per form. Extended non-compliance can lead to the company being struck off and directors being disqualified.
Why Choose CharteredZone for Section 8 Company Registration?
CharteredZone is India's most trusted business registration and compliance platform. When you register with us, our expert Company Secretaries and CAs handle the entire lifecycle:
- Drafting with Precision: Drafting the MOA & AOA carefully to align exactly with your social welfare and charity objectives.
- Section 8 License Procurement: Handling the INC-12 application and resolving any queries raised by the ROC.
- Post-Registration Registrations: Fast-track setup for 12A & 80G tax registrations, FCRA license setup, and GST registration.
