Section 8
Company Registration
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Section 8 Company Registration – An Overview
Section 8 Company Registration is essential to encourage non-profitable goals. Donations made to Section 8 Companies are eligible for deductions under the rules of the Income Tax Act, and these companies enjoy tax exemptions. The sole purpose of the establishment is to promote social entrepreneurship and charity in India to help the ones in need.
Before applying for incorporation with the Registrar of Companies (ROC), the applicant must get a license from the Central Government to incorporate a Section 8 company in India. To ensure compliance, it is imperative to strictly adhere to the goals set forth during Section 8 NGO registration.
Are you worried about the challenges in the pathway of Section 8 Company incorporation? If yes, our experts will reduce your worry and ensure effortless formation of section 8 company.
What is a Section 8 Company?
A non-profit organization created to advance business, the arts, science, sports, education, research, social welfare, religion, charity, the environment, or any other comparable goal is known as a Section 8 Company under the Companies Act of 2013.
In contrast to other businesses, it uses the money it makes to achieve its declared goals rather than dividing it up among its members.
What is the Purpose of Section 8 Company Registration Online?
The purpose of Section 8 company registration online is to promote social welfare, education, arts, commerce, sports, and the empowerment of the lower-income class. So, Individuals, HUFs, and limited companies with a desire to transform society are eligible for Section 8 NGO registration.
Any profits made by a Section 8 company are reinvested into the business to give wings to its founding cause.
Benefits of the Section 8 Company Registration Online
Section 8 Companies enjoy tax exemptions. The significant benefits of Section 8 Company Registration online are mentioned below–
1. Legal Recognition
By securing the Section 8 Company Registration online, the entity gets legal recognition in the country, making them eligible to accept donations and funding from outside sources. It also ensures tax exemptions under the Income Tax Act, 1961 for donors.
2. Limited Liability
The Section 8 NGO registration ensures that the members, shareholders, and directors are not fully liable for obligations. Their liability is limited to their contribution.
3. Perpetual Existence
Even after the exit of founding members, a Section 8 Company continues to operate without disruption. This ensures continuity in its operations and purpose.
4. Taxation Benefits
Donors get tax exemptions under sections 12A and 80G. This helps attract more donations and achieve the entity's charitable objectives.
5. Impact on Society
The primary aim is to serve society by promoting social services. These initiatives promote unity and uplift the underprivileged.
6. Collaborations
Section 8 Companies can collaborate with foreign bodies or other organizations, enabling them to work together toward common causes efficiently.
7. Government Grants
Registered Section 8 entities are more likely to receive government aid and grants to continue their mission for social welfare.
Eligibility Criteria for Section 8 Company Registration
Certain eligibility criteria must be met to proceed with the Section 8 Company Registration as per the Companies Act 2013. These are as follows:
There must be a minimum of two directors or shareholders to proceed with the Section 8 Company Registration. They must comply with the compliances stated in the Companies Act, 2013.
A company, individual, or Hindu Undivided Family can proceed with the Section 8 company registration.
A minimum of one director must be residing in India.
The purpose of the entity must be any of the advancing business, arts, science, sports, education, research, social welfare, religion, charity, the environment, or any other similar goals.
Any kind of profit, dividend, or donation must only be used to meet the objectives of the organization and not to be distributed among the partners.
The entity must have a detailed plan for meeting the objectives of the next three years.
Documents Required to Register Section 8 Company
To start with the process of registration, the applicant first needs to know the documents required to register section 8 company. These are as follows –
Directors and shareholders PAN Card
Aadhar Card
Bank Statement
Utility Bills
Driving License/ Passport/ Voter ID
Directors and Shareholders photographs
Raw Material Source for information on the source of raw materials.
Rent Agreement of the Registered Entity
DIN & DSC of Directors
Memorandum of Association & Articles of Association
Procedure for Section 8 Company Registration Online
Characteristics of Section 8 Company Registration
Non-profit Entities Section 8 company registration is made to start an organization with the sole purpose of doing charitable and philanthropic work as per the objectives established at the time of its incorporation.
Profit Utilization Food retailers, including grocery stores and supermarkets
Profit Utilization All the profits, income, or donations received by these entities must be utilized to carry forward with their objective and not to share them between the partners. None of the profits accrued by the organization goes into the pockets of the partners.
Dividend Distribution Along with profits, no dividend is distributed among the members of the organization. These all are reinvested to promote the objectives of the organization and help as many individuals as possible.
List of Forms Required for Section 8 Company Registration
To go through the process, certain forms are required. The list of forms required for Section 8 Company Registration is as follows –Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
A Form INC-11 is used for the application of incorporation of Section 8 company.
A Form INC-12 is used to provide information about the company’s directors. A Form INC-13 is used for the information on the Memorandum of Association’s subscribers.
A Form INC-14 is used for providing the registered office’s information.
A Form INC-15 is used for submitting the company’s Memorandum of Association and Articles of Association.
Section 8 Company Incorporation Compliance
Director Availability
At all times in the organization, there must be at least two directors in which one should mandatorily be an Indian. Along with the directors, there must be a minimum of two members as well.
Organization’s Object
The sole purpose of establishing a Section 8 company is to do charitable work for the general people of the society who are in dire need of support. At no point, such an object should change into profit profit-making business. The profits earned through any mode in the organization must be utilized for carrying forward the objective stated in the MoA submitted to the registrar. Even the members of the organization are not allowed to share any profits or dividends.
Management
Section 8 companies are at all times managed by the board of directors working as per the MoA and AoA submitted to the registrar at the time of incorporation. They are responsible for carrying forward the objectives set for the organization.
The Companies Act, 2013 Regulations
Section 8 companies are incorporated under the Companies Act 2013, and they must follow all the regulations set for them in the act. For example, annual returns fillings, maintaining the books of accounts, holding meetings of the board of directors at regular intervals, financial statements filing in Form AOC 4, audit reports, etc.
Income Tax Act, 1961 Regulations
The donors in the entity get tax exemptions for registration under section 12A and donations under section 80G. To claim these deductions, the entity must acquire the 80G and 12A Registration certificate, which helps them get more donations and through which the donors get the benefit of tax deductions.
GST Compliance
The organization needs to attain a GST registration certificate in a case where the service-providing business does business with more than the threshold limit of Rs 20 Lakhs and the one that deals in goods has an annual turnover of more than Rs 40 lakhs.
Laws in India Applicable to an NGO
Society under Societies Registration Act, 1860
Trust under Indian Trusts Act, 1882
Section 8 of Companies Act, 2013
Difference between Society, Trust, and Section 8 Company
| Aspects | Society | Trust | Section 8 Company |
|---|---|---|---|
| Governing Legislation | Societies Registration Act, 1860 | Indian Trust Act, 1882 | Companies Act, 2013 |
| Registered as | NGO/NPO | NGO/NPO | NGO/NPO (It enjoy all the privileges of a limited company; No need to add Pvt Ltd to the name) |
| Document of Constitution | MoA & Rules and Regulations | Trust Deed | MoA and AoA |
| Registration Authority | Registrar or Deputy Registrar of the Particular State | Deputy Registrar of the State | ROC or Regional Director |
| Minimum Members | 7 members minimum (5 for J&K and Telangana) | 2 Trustees Minimum | 2 Directors and 2 Shareholders (Directors may also be the shareholders) |
| Cost | Medium | Low | High |
| Grants and Subsidies | Not Much | Not Much | Considerable |
| Preference under FCRA Registration | Low | Low | High |
| Transparency | Low | Low | High |
Fee for Section 8 Company Registration in India
Obtaining DSC and DIN – Rs 3,000
Name Approval of the Organization – Rs 1,000
Government Fees, Incorporation fees, AoA, and MoA – Rs 6,000 – 8,000
Stamp Duty and Notary Charges – Rs 2,000
A Professional Fees – Rs 8,000 – 10,000
Timeline to Register Section 8 Company Online
The timeline to register Section 8 Company online depends upon how fast the applicant can complete the documentation process along with the DSC and DIN of directors. After all the documents are collected, the application form from the website of MCA has to be filled out online.
It usually takes around 15 – 20 days to get the Section 8 Company Registration certificate if all the documents are submitted as required and no objection or correction is happening from the end of the registrar of companies.
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Authors
Written by Aarya Pokharel. Last updated on Jul 22 2025, 01:16 PM
Aarya Pokharel brings 3 years of solid experience in legal research and compliance. Her expertise spans tax filing, secretarial compliances, and advisory services, with a strong focus on delivering precise legal research and strategic advisory support.