Make it compliant, credible, and purpose-driven! Section 8 Company Registration in just a few clicks.
Register your non-profit today to gain legal recognition, build donor trust, and amplify your social impact with full compliance!
Do you want to use a non-profit to change the world? One excellent first step may be to form a Section 8 Company. This framework assists you in building a solid and reliable foundation, regardless of your areas of passion—education, healthcare, or social welfare. Additionally, it gives you tax advantages and reputation. Unlike other businesses, a Section 8 Company is motivated by purpose rather than profit. All of the money you raise is reinvested in the mission, increasing its impact, opening up new avenues for growth, and gaining the confidence of authorities and funders.
A company established to further non-profit goals like education and research, social welfare, charity or religion, the environment sustainability, Encouragement of sports, science, and art projects is known as a Section 8 Company.
Profits are not divided among members of a Section 8 company. Rather, every revenue is reinvested to meet the goals of the organization. These businesses are essential to promoting social progress and tackling important problems including environmental sustainability, poverty alleviation, and education for disadvantaged children. They are the go-to structure for people and groups who want to promote social change while gaining legal recognition, receiving tax breaks, and building confidence with stakeholders, donors, and government agencies.
If you are considering forming a Section 8 company, you should consider the following before starting your business.
Registering a Section 8 company of the Companies Act of 2013 has several benefits, including the following:
If the Section 8 company is to be incorporated as a private limited company, it must have a minimum of two directors; if it is to be incorporated as a public limited company, it must have a minimum of three directors. A private limited company can have up to 200 members, but a public limited company can have an unlimited number of members.
When a Section 8 company is incorporated, there is no minimum paid-up capital requirement. Non-profits that are formed as Section 8 companies are exempt from using the terms “Limited” or “Private Limited” in their names.
Section 8 companies are established with non-profit goals in mind. The non-profit goal or purpose for which it was founded must be mentioned in the MOA and AOA. The section 8 company uses all of its earnings to support its primary goals, which include reinvesting in the business or donating to charitable causes. Its members will not receive a portion of the revenues.
In contrast to other trusts, which are run by the Trustees in accordance with the Trust Deed, Section 8 companies are run by the Board of Directors in accordance with the company’s MOA and AOA.
A Section 8 company must abide by the guidelines set forth in the 2013 Companies Act. It must file returns with the Registrar of Companies and keep up with its books of accounts. Without the Central Government’s prior consent, a Section 8 company is not permitted to alter any of the terms of the MoA and AoA. It must also abide by the rules set forth in the GST Law and the Income Tax Act.
Since the forms for the registration process are submitted online, the proposed directors of the firm must have digital signatures. Government-approved certifying organizations issue digital signature certificates (DSC). You may find the list of these authorized agencies here. Depending on the certifying organization, getting a DSC can cost different amounts. A Class 3 category DSC is required.
For the company’s potential directors, you must apply for a DIN. The DIN allocation application must be submitted on Form DIR-3 or with the SPICe+ registration form. Along with the form, you must submit it online via the MCA Portal with a scanned copy of the required paperwork, including a self-attested copy of your PAN and verification of directors’ identities and addresses. A practicing professional, such as a chartered accountant, company secretary, or cost accountant, must attest the form.
Section 8 companies have the same annual compliance requirements as other businesses.
A company registered in accordance with Section 8 of the Companies Act of 2013 is known as a Section 8 Company. It was founded as a non-profit organization with the goals of advancing the arts, sciences, business, charity, religion, sports, education, research, social welfare, and environmental protection. Its members do not receive a portion of its profits. Rather, the proceeds are utilized to advance the organization’s goals.
Section 8 Companies are founded for a variety of reasons, including social welfare, charitable work, religion, the arts, science, sports, education, research, environmental preservation, and so forth. The company’s primary characteristic is that it was founded to advance society rather than generate revenue for its directors or members.
No, a Section 8 company is not allowed to give its members a cut of the earnings. Any revenue or profit made by the company must be put toward achieving the social or charitable goals for which it was established.
Legal Status: Because it is a distinct legal entity, it is able to file and receive lawsuits under its own name.
Tax Benefits: If they fulfil the requirements, Section 8 companies are eligible for a number of tax exemptions under the Income Tax Act.
Limited Liability: In the event that the business experiences financial difficulties, directors’ and members’ personal assets are not at risk due to limited liability.
Credibility: An organization’s registration under the Companies Act lends it legitimacy, particularly when looking for grants, donations, or finance.
Capacity to Raise Funds: They are able to take grants and gifts, including from overseas sources, as long as they abide by FCRA.
i) The Companies Act of 2013 governs the incorporation of a Section 8 Company, whereas the Indian Trusts Act of 1882 governs a Trust, and the Societies Registration Act of 1860 governs the registration of a Society.
ii) Management Structure: A society has a governing body, a trust is run by trustees, and a Section 8 company has a board of directors and shareholders.
iii) Requirements for Compliance: Section 8 companies are subject to the Companies Act’s requirements, which may be more complex than those for trusts or societies. These requirements include filing annual returns, hosting annual general meetings (AGMs), and keeping financial records in line with company law.
Here’s a step-by-step process for registering a Section 8 Company:
1. Obtain a Digital Signature Certificate (DSC): In order to submit electronically, all directors and subscribers must obtain a DSC.
2. Obtain a Director Identification Number (DIN): A DIN is required for each director of the company and can be obtained for online.
3. Select a Name: The company’s suggested name ought to be original and not similar to any already-existing business or trademark.
4. Draft the Articles of Association and Memorandum of Association (MOA and AOA): These documents need to specify the non-profit goals and guidelines for the business’s activities.
5. Submit an application to the RoC (Registrar of Companies): Send the application to the RoC with the necessary paperwork (such as the directors’ details, proof of address, MOA, and AOA).
6. Obtain the License: In accordance with Section 8 of the Companies Act, 2013, the Ministry of Corporate Affairs (MCA) will grant a license that will permit the business to function as a Section 8 firm.
7. Certificate of Incorporation: The business receives a Certificate of Incorporation with Section 8 status after the application is accepted.
i) The purpose for which the company is being founded is outlined in the Memorandum of Association (MOA).
ii) The company’s internal rules and regulations are detailed in the Articles of Association (AOA).
iii) Proof of Address: For the company’s registered office (such as a rent agreement or utility bill).
iv) Proof of identity and address for each director and subscriber.
v) Certificate of Digital Signature (DSC): Required for online application submission.
vi) Each director’s Director Identification Number (DIN).
i) Annual Filing: Section 8 Companies are required to submit their annual reports and financial statements (profit and loss account, balance sheet) to the RoC.
ii) The holding of an annual general meeting (AGM) and the recording of meeting minutes are mandatory.
iii) Audit: Every year, a certified chartered accountant (CA) is required to audit the Section 8 Company’s financial statements.
iv) Financial Statement Submission: The business must submit its financial statements in the required format to the Ministry of Corporate Affairs (MCA).
A Section 8 company can have up to fifteen directors, but it must have at least two. Nonetheless, if necessary, the company may request to add more directors than the current fifteen.
A Section 8 company needs permission from the central government before it may divide its revenues among its members or transform into a profit-oriented business. In order to do this, the business would have to give up its Section 8 license and go through the standard processes for becoming a regular company under the Companies Act.
In accordance with the Foreign Contribution (Regulation) Act, 2010 (FCRA), a Section 8 Company is permitted to accept gifts from overseas. If the business plans to obtain foreign funding, it must register with the Ministry of Home Affairs (MHA).
A Section 8 Company may borrow money, but only if it does it in accordance with its goals and without giving the money to its members. For purposes associated with the social cause it promotes, loans may be raised.
Indeed, the Ministry of Corporate Affairs’ (MCA) fee system governs the registration fee, which is based on the company’s authorized capital. The kind of application and the registered capital of the business can affect the fee.
Section 8 Company Registration is your first step toward purposeful impact and legal credibility.
Whether you’re starting a non-profit or expanding your social initiative, registering as a Section 8 Company helps you:
✅ Promote charitable, educational, or social objectives
✅ Gain legal recognition and structured governance
✅ Enjoy tax exemptions and benefits under Income Tax Act
✅ Build trust with donors, partners, and stakeholders
✅ Ensure compliance with the Companies Act and NGO norms
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