Section 8 Company Registration
Start Your Non-Profit Organisation Legally & Effortlessly
Get your Section 8 Company registered with government approval, license, and incorporation documents—all handled by our expert team. Fast process, full compliance support, and complete guidance from start to finish.
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What is a Section 8 Company?
A Section 8 Company is a special type of non-profit organization registered under the Companies Act, created to promote charitable activities such as education, social welfare, healthcare, environment protection, art, culture, and community development. Unlike normal companies, it cannot distribute profits to its members—every earning must be used only for the organization’s objectives.
Why Register a Section 8 Company?
Registering a Section 8 Company gives your charitable work strong legal recognition and higher credibility. It allows you to receive donations, apply for government grants, collaborate with corporates for CSR funding, and gain access to tax exemptions. With a professional structure, transparent operations, and legal compliance, your NGO becomes more trusted and impactful. A Section 8 Company also ensures long-term growth, better governance, and nationwide acceptance for any social cause you want to serve.
Section-8 Registration Packages
Get affordable, transparent pricing for Section-8 Company registration — name approval, and expert support included.
Name Approval
Stater Plan-
Name Availability Check
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Apply Up-to 4 Names (RUN/Spice+)
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Real-time Tracking Approval Status
Incoporation
Premium Plan-
Stater Plan (Included)
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Director Identification No, ESI, EPF
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MOA & AOA, COI, PAN, TAN
Benefits of Section 8 Company Registration
1. High Credibility & Public Trust
A Section 8 Company is widely respected for its non-profit nature and transparent operations. Since it functions under strict legal guidelines and government oversight, donors, CSR partners, and funding agencies trust it far more than informal NGOs, societies, or voluntary groups.
2. Eligibility for Tax Exemptions (80G & 12A)
Registering as a Section 8 entity enables you to apply for tax exemption certificates like 80G and 12A, which significantly boost fundraising efforts. Donors receive tax benefits, and the organization can retain more funds for charitable projects, making long-term sustainability easier and more impactful.
3. No Minimum Capital Requirement
There is no mandatory minimum capital needed to start a Section 8 Company. This flexibility allows small teams, startups, and first-time social entrepreneurs to launch meaningful initiatives without heavy financial pressure, while still enjoying the credibility and structure of a registered non-profit company.
4. Limited Liability Protection
Members enjoy the security of limited liability, meaning their personal assets remain protected if the organization faces financial or legal challenges. This encourages more professionals, donors, and volunteers to join and support the cause without worrying about personal financial risk.
5. Separate Legal Identity & Perpetual Existence
A Section 8 Company exists independently of its members. It can own assets, open bank accounts, receive grants, hire staff, and enter contracts in its own name. Even if members resign or change, the organization continues to operate smoothly, ensuring long-term stability.
6. Better Funding & CSR Opportunities
Corporates, government bodies, and international donors prefer Section 8 Companies due to their transparency, compliance, and strong governance framework. This structure helps attract CSR grants, funding partnerships, donations, and collaborations, enabling the organization to scale its social impact faster and more professionally.
❗ Disadvantages of Section 8 Company Registration
1. Strict Compliance & Regular Filings
Section 8 Companies must follow annual filings, audits, board meetings, and compliance norms similar to private limited companies. This ensures accountability but also requires time, documentation, and professional assistance. Missing compliance deadlines can attract penalties or cancellation of tax exemption benefits.
Eligibility Criteria for Section 8 Company Registration
Charitable or Non-Profit Objective
The primary purpose of the organization must be to promote charitable activities such as education, healthcare, environment protection, social welfare, research, sports, art, culture, or other non-profit causes. The company must use its income only for these objectives and cannot distribute profits among members.
No Profit Distribution Allowed
A Section 8 Company must strictly operate without profit distribution. Any income, surplus, or grants received must be reinvested into its charitable programs. Members, directors, and promoters cannot take dividends, ensuring the organization stays focused entirely on public welfare and long-term social development.
Minimum Two Directors & Two Members
To register a Section 8 Company, you must have at least two directors and two members. The same individuals can act as both directors and members. At least one director must be an Indian resident to meet legal standards and ensure smooth ongoing compliance.
Clear Vision, Mission & Activity Plan
You must define a clear mission statement, long-term goals, and a well-structured activity plan that explains how the organization intends to carry out its charitable work. The proposed operations must genuinely benefit society and align with the non-profit purpose outlined under Section 8 of the Companies Act.
DSC & DIN for All Directors
All directors must obtain a Digital Signature Certificate (DSC) for online filings and a Director Identification Number (DIN) for official registration. These are mandatory identity credentials that ensure legal accountability, transparent operations, and secure digital documentation throughout the registration process.
No Minimum Capital Requirement
There is no minimum capital requirement to register a Section 8 Company. You can begin with any amount based on your project needs. However, the funds must be used responsibly for charitable activities, and proper accounting records must be maintained as per compliance norms.
Compliance Requirements for Section 8 Company
Mandatory Annual Filings with MCA
A Section 8 Company must file annual returns and financial statements every year with the Ministry of Corporate Affairs (MCA). These filings ensure transparency in financial operations and help maintain the organization’s active status, trustworthiness, and legal compliance under the Companies Act.
Proper Books of Accounts & Financial Records
The company must maintain accurate books of accounts, including income, donations, grants, and expenses. Proper documentation supports accountability and demonstrates that all funds are utilized strictly for charitable purposes, avoiding any misuse of resources or questions during audits.
Statutory Audit by a Chartered Accountant
Every Section 8 Company is required to undergo a statutory audit conducted by a certified Chartered Accountant. The audit verifies the organization’s financial accuracy, ensures legal compliance, and confirms that the company is using funds as per its approved objectives and non-profit nature.
Board Meetings & General Meetings
The company must conduct regular board meetings and an annual general meeting (AGM). Minutes of all meetings must be recorded and preserved. These meetings help document decisions, maintain accountability among directors, and ensure the organization functions efficiently and transparently.
CSR Compliance (If Applicable)
If the Section 8 Company receives CSR funds from corporates, it must comply with CSR guidelines under the Companies Act. This includes proper utilization of funds, reporting, documentation, and periodic updates to ensure donors that money is being used responsibly and for approved social activities.
Income Tax Compliance & Exemptions
The company must file annual income tax returns and, if applicable, maintain registrations under 12A, 80G, or other tax exemption schemes. These registrations enhance credibility, attract more donations, and offer tax benefits to donors while ensuring the organization meets all IT compliance requirements.
Documents of Directors, Shareholders and Registered Office Address
Why These Documents Are Required?
These documents are essential to verify the identity of directors, confirm the registered office address, and ensure the company is being formed for genuine non-profit objectives. They help the MCA validate legal compliance, assess eligibility for Section 8 status, and complete the registration securely and transparently.
🪪 Identity & Address Proof
- PAN Card of All Directors
- Aadhaar of All Directors
🏠 Residence & Office Proof
- Bank Statement / EB / Gas Bill etc.
- Rental Agreement (if rented)
Get Expert Support to Register Section-8
Get expert guidance to register your One Person Company (OPC) online with ease. Our professionals handle every step — from name approval to incorporation — ensuring a fast, secure, and hassle-free process so you can focus on growing your business.
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| Features | Section 8 Company | Trust | Society |
|---|---|---|---|
| Legal Structure | Registered under Companies Act | Registered under Trust Act | Registered under Societies Act |
| Minimum Members | 2 Directors | 2 Trustees | 7 Members |
| Profit Distribution | Not allowed | Not allowed | Not allowed |
| Compliance Level | High (ROC filings) | Low | Moderate |
| Credibility | Very High | Moderate | High |
| Transparency | Strong audit & reporting | Low requirements | Moderate |
| Tax Benefits (80G/12A) | Easier to get | Moderate | Moderate |
| Funding Eligibility | High (CSR + Govt + Foreign) | Moderate | Moderate |
| Management Control | Board of Directors | Trustees | Governing Body |
| Conversion Option | Cannot convert to profit company | Cannot convert | Cannot convert |
| Certificate Authority | MCA (ROC) | State Registrar | Registrar of Societies |
| Registration Time | 6–12 Days | 7–15 Days | 15–25 Days |
| Foreign Contributions (FCRA) | Easy to get if compliant | Moderate | Moderate |
| Ideal For | NGO, Non-profits, CSR Projects | Charitable work | Cultural, Social, Educational groups |
Frequently Asked Questions (FAQ)
A Section 8 Company is a nonprofit organization formed for charitable, educational, social, or environmental objectives. It operates without profit distribution and is registered under the Companies Act.
Yes, it can earn revenue through donations, grants, events, and services, but profits cannot be distributed to members. All earnings must be reinvested in the organization’s mission.
Registration usually takes 20–30 working days, depending on name approval, document submission, and Ministry of Corporate Affairs (MCA) processing speed.
Yes, but it requires FCRA approval, which is granted only after meeting specific compliance standards and completing three years of operations.
Not mandatory by default. GST registration is required only if the company crosses the ₹20–40 lakh annual turnover threshold or engages in interstate supply.
Absolutely. Section 8 Companies have high credibility, making them more eligible for CSR contributions, government schemes, and international grants.
Yes, directors or staff can receive reasonable compensation for work performed. However, no dividend or profit distribution is allowed.
No. Once registered as a Section 8 entity, it cannot be converted into a private or public limited company with profit motives.
It must file annual returns, financial statements, maintain proper books, and follow MCA regulations. Compliance is higher compared to Trusts and Societies.
No. Section 8 requires a minimum of 2 directors and 2 shareholders. A single individual cannot form it alone.
Why Register With FinzaIndia?
FinzaIndia provides a fast, reliable, and affordable registration service designed for startups, NGOs, and professionals. Our expert team manages everything—documentation, compliance, and legal support—ensuring a smooth and hassle-free registration experience with complete accuracy, transparency, and trusted guidance from start to finish.