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Ready to Register Your Section 8 Company?
Complete non-profit registration from ₹1,999. Central Government license, MOA/AOA drafting, PAN, TAN included.
Simple Process
Here's How It Works
01
Fill the Form
Simply fill the above form to get started.
02
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Our startup expert will connect with you & complete legalities.
03
Register Your Section 8 Company
Get expert CA/CS guidance for your non-profit incorporation.
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Section 8 Company Registration Package
From ₹1,999 one-time professional fee
Complete within 7 days
7-day turnaround 100% guaranteed
Central Government Section 8 License
Certificate of Incorporation with CIN
Company PAN and TAN
MOA Drafting in INC-13 Format
AOA with Section 8 Governance Rules
DIN Allotment for Directors
DSC Procurement Assistance
12A & 80G Application Guidance
DARPAN Registration Guidance
1 Year Free Consultation
*Government fees are additional and vary based on company structure
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Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
What: Non-profit company under Section 8(1), Companies Act, 2013 Cost: ₹8,000 to ₹25,000 total (professional fee from ₹1,999) Time: 15 to 20 working days Minimum: 2 directors, 2 members, no minimum capital Key Benefit: Separate legal entity + 12A/80G tax exemption eligibility Regulator: Ministry of Corporate Affairs (MCA)
This page covers the complete Section 8 registration process, government fees, required documents, step-by-step filing procedure, annual compliance requirements, and a detailed comparison with Trust and Society structures for 2026.
A Section 8 Company is a non-profit organization registered under Section 8(1) of the Companies Act, 2013 that promotes commerce, art, science, education, sports, social welfare, religion, charity, or environmental protection without distributing profits to its members.
Under Section 8(1) of the Companies Act, 2013, the Central Government grants a license to associations formed for promoting charitable purposes. These companies enjoy all privileges of a limited company, including separate legal entity status, limited liability protection, and perpetual succession, but cannot add "Limited" or "Private Limited" to their name. The governing law replaced the earlier Section 25 of the Companies Act, 1956, and existing Section 25 companies were automatically deemed Section 8 companies without re-registration.
Section 8 Companies are eligible for 12A income tax exemption, 80G donor deductions, CSR funding under Section 135, and FCRA registration for foreign donations. With minimum 2 directors and no minimum capital requirement, the structure suits NGOs, foundations, social enterprises, and professional associations operating at any scale. Organizations like CII, FICCI, NASSCOM, and Teach for India Foundation operate as Section 8 Companies.
Not sure which NGO registration type fits your goals? Section 8 is best for organizations that need corporate credibility, pan-India operations, and access to institutional funding. For simpler structures, explore Trust or Society registration.
Governing Law: Companies Act, 2013, Sections 8(1) to 8(11) Rules: Companies (Incorporation) Rules, 2014, Rules 19 to 22 Regulator: Ministry of Corporate Affairs (MCA) Licensing Authority: Regional Director, MCA
Parameter
Details
Governing Law
Companies Act, 2013, Section 8
Regulator
Ministry of Corporate Affairs (MCA)
Licensing Authority
Regional Director
Processing Time
15 to 20 working days
Government Fees
₹3,500 to ₹14,000
Professional Fee
Starting ₹1,999
Minimum Directors
2 (Private) / 3 (Public)
Minimum Capital
No minimum required
Benefits of Section 8 Company Registration
Section 8 Companies combine corporate governance with non-profit purpose, giving founders legal protection and institutional credibility that Trust and Society structures cannot match.
Separate Legal Entity
A Section 8 Company is a distinct legal person that can own property, enter contracts, and sue or be sued in its own name. Assets and liabilities stay separate from founders and members.
No Minimum Capital Requirement
Unlike Private Limited Companies, Section 8 has no minimum authorized capital. You can register with capital as low as ₹10,000 based on your operational needs, keeping the initial financial barrier low.
Tax Exemptions under 12A and 80G
After obtaining 12A registration, the company's income is 100% exempt from income tax. 80G registration enables donors to claim 50% to 100% deductions, improving fundraising prospects.
Government Recognition and Credibility
Registration with MCA under the Companies Act, 2013 provides higher credibility than Trust or Society structures. CSR departments prefer Section 8 Companies for implementing CSR projects under Section 135.
FCRA Eligibility for Foreign Donations
Section 8 Companies can apply for FCRA registration under the Foreign Contribution (Regulation) Act, 2010 to receive foreign donations and grants after 3 years of operation.
Limited Liability Protection
Members' personal assets remain protected. Liability is limited to the unpaid amount on shares (if any). Founders are not personally liable for the company's debts or obligations, unlike Trust structures.
Perpetual Succession
The company continues to exist regardless of changes in membership or directorship. Death, resignation, or disqualification of a member does not affect the company's legal existence.
Pan-India Operations
A Section 8 Company registered in any state can operate across all Indian states without additional registrations. This is a key advantage over Societies, which often need state-level registration for inter-state operations.
Types of Section 8 Companies in India
Section 8 Companies can be structured in four distinct ways depending on membership size and liability structure. The right choice depends on your organization's scale, funding needs, and governance preferences.
Parameter
Private (Limited by Shares)
Private (Limited by Guarantee)
Public (Limited by Shares)
Public (Limited by Guarantee)
Minimum Directors
2
2
3
3
Minimum Members
2
2
7
7
Maximum Members
200
200
No limit
No limit
Liability Structure
Limited to unpaid share value
Limited to guarantee amount
Limited to unpaid share value
Limited to guarantee amount
Ideal Use Case
NGOs with capital contribution
Most common: clubs, associations, foundations
Large institutions with capital
Large federations, professional bodies
The Private Section 8 Company Limited by Guarantee is the most popular choice for NGOs and foundations. It requires only 2 directors and 2 members, has no share capital requirement, and offers the simplest governance structure. Members guarantee a nominal amount (typically ₹1,000 to ₹10,000) payable only during winding up.
Who Can Register a Section 8 Company?
Any group of individuals or entities with a genuine charitable objective can register a Section 8 Company. The eligible objectives listed under Section 8(1) include promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, and environmental protection.
Requirement
Private Section 8
Public Section 8
Minimum Directors
2
3
Minimum Members
2
7
Indian Resident Director
At least 1 (182+ days in India)
At least 1 (182+ days in India)
DIN Required
Yes, for all directors
Yes, for all directors
DSC Required
Yes, for all directors
Yes, for all directors
Age Requirement
18+ years for directors
18+ years for directors
Objectives
Must be charitable/non-profit
Must be charitable/non-profit
NRI/Foreign Nationals
Allowed as members/directors
Allowed as members/directors
Minimum Capital
No minimum
No minimum
Eligible persons include Indian residents, NRIs, foreign nationals (with notarized and apostilled documents), body corporates, partnership firms, and LLPs. Directors must not be disqualified under Section 164 of the Companies Act, 2013. At least 1 director must be an Indian resident under Section 149(3).
Documents Required for Section 8 Company Registration
Collect the following documents before starting the registration process. Accurate and complete documentation is the biggest factor in preventing INC-12 license rejections.
For Directors (Indian Residents):
PAN Card (mandatory for all directors)
Aadhaar Card (for OTP verification on MCA portal)
Passport-size Photograph (recent, white background, not older than 6 months)
Passport (mandatory for NRI/foreign national directors, notarized and apostilled)
For Company/Registered Office:
Registered Office Address Proof (utility bill not older than 2 months)
NOC from Property Owner (if rented premises)
Rent Agreement (if applicable)
Projected Income-Expenditure Statement for 3 years (required for INC-12)
Draft Memorandum of Association in INC-13 format
Draft Articles of Association with Section 8 governance rules
All documents should be self-attested by the respective director. Ensure Aadhaar is linked to an active mobile number for MCA OTP verification. Prepare the 3-year income-expenditure projection before starting; the Regional Director scrutinizes this carefully in the INC-12 application. Keep all documents as clear PDF scans under 2 MB each.
Step-by-Step Section 8 Company Registration Process
Section 8 registration involves 8 steps, takes 15 to 20 working days, and costs ₹8,000 to ₹25,000 in total (including government fees and professional charges). The process requires a Central Government license before incorporation, which is the key difference from regular company registration. Based on our experience registering 5,000+ Section 8 Companies, the license approval step (INC-12) is where most delays occur, as the Regional Director scrutinizes charitable objectives and 3-year financial projections carefully.
Step 1: Obtain Digital Signature Certificates (DSC)
Apply for Class 3 Digital Signature Certificates for all proposed directors. Each DSC costs ₹800 to ₹2,000 and remains valid for 2 years. DSCs are mandatory for signing all MCA e-forms, including the INC-12 license application and SPICe+ incorporation form. IncorpX helps you obtain DSCs from authorized certifying agencies within 1 to 2 working days.
Time: 1 to 2 working days
Step 2: Reserve Company Name via RUN
File the RUN (Reserve Unique Name) form on the MCA portal with 2 proposed names. Government fee is ₹1,000 per application. The name must reflect charitable objectives (Foundation, Association, Forum, Council) and cannot contain "Limited" or "Private Limited." The Central Registration Centre processes applications within 2 to 3 working days.
Portal: www.mca.gov.in | Form: RUN | Time: 2 to 3 working days
Step 3: Draft MOA and AOA in INC-13 Format
Prepare the Memorandum of Association in Form INC-13 format, specifying charitable objectives from the Section 8(1) list: promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, or protection of environment. The Articles of Association must include Section 8-compliant governance rules that prohibit profit distribution to members.
Form: INC-13 | Time: 1 to 2 working days
Step 4: Apply for Section 8 License via Form INC-12
File Form INC-12 with the Regional Director along with Form INC-14 (CA/CS/CWA declaration) and Form INC-15 (directors' declaration). Attach the draft MOA, AOA, and estimated income-expenditure projections for 3 years. Government fee ranges from ₹2,000 to ₹5,000. The Regional Director reviews the application and verifies the charitable objectives.
Portal: www.mca.gov.in | Form: INC-12 | Time: 7 to 10 working days
Step 5: Receive Section 8 License in Form INC-16
The Regional Director issues the Section 8 license in Form INC-16 after verifying the charitable objectives and compliance declarations. This license is a mandatory prerequisite for filing SPICe+ incorporation. Without INC-16, the Registrar of Companies will not accept the incorporation application.
Form: INC-16 | Time: included in Step 4
Step 6: File SPICe+ for Incorporation
Submit SPICe+ (INC-32) on the MCA portal with the Section 8 license (INC-16), signed MOA and AOA, director consent (DIR-2), director declaration (INC-9), and registered office proof. Government fee is ₹500 to ₹2,500 based on authorized capital. SPICe+ simultaneously allots PAN, TAN, EPFO, ESIC, and GST registration in a single integrated form.
Portal: www.mca.gov.in | Form: SPICe+ (INC-32) | Time: 3 to 5 working days
Step 7: Receive Certificate of Incorporation
RoC verifies the SPICe+ application and issues the Certificate of Incorporation with a unique CIN (Corporate Identity Number). PAN and TAN are allotted simultaneously. The company is now a legally registered entity under the Companies Act, 2013 with all privileges of a Section 8 Company.
Time: included in Step 6
Step 8: Complete Post-Registration Formalities
Open a current bank account using the Certificate of Incorporation, PAN, and Board resolution. Appoint a statutory auditor within 30 days of incorporation per Section 139. Apply for 12A and 80G registration on the Income Tax portal. Register on the NGO-DARPAN portal for government grant eligibility.
Time: 5 to 7 working days
Based on 5,000+ registrations, the top 3 INC-12 rejection causes are: (1) Unrealistic 3-year income-expenditure projections where income sources are vague or expenditure doesn't align with stated objectives. (2) MOA objectives outside Section 8(1) categories, such as including commercial activities that suggest profit motive. (3) Name conflicts with existing companies on MCA records. IncorpX's CA/CS team reviews every application against these criteria before submission.
15 to 20 working days. Expert CA/CS support. Government fees at actuals.
Section 8 Company Registration Cost in 2026
The total cost of Section 8 Company registration depends on the number of directors, authorized capital, and state of registration. Here is a detailed breakdown for a standard registration with 2 directors:
Component
Amount (₹)
Notes
DSC (per director)
₹800 to ₹2,000
Class 3, valid 2 years
Name Reservation (RUN)
₹1,000
Per application, 2 names per attempt
Section 8 License (INC-12)
₹2,000 to ₹5,000
Regional Director application fee
SPICe+ Incorporation
₹500 to ₹2,500
Based on authorized capital
Stamp Duty
₹500 to ₹5,000
State-dependent, reduced for non-profit
DIN Allotment
Free (via SPICe+)
Up to 3 directors included
Professional Fee (IncorpX)
₹1,999
Includes license + incorporation filing
Total (2 directors)
₹8,000 to ₹25,000
All-inclusive range
State-Wise Stamp Duty for Section 8 Company:
State
Stamp Duty (₹)
Notes
Delhi
₹500 to ₹1,000
Nominal rates for charitable companies
Maharashtra
₹1,000 to ₹3,000
Concessional rates for non-profits
Karnataka
₹500 to ₹2,000
Reduced rates for non-profit entities
Tamil Nadu
₹1,000 to ₹3,000
Standard rates apply
Gujarat
₹500 to ₹1,500
Rebate available for charitable entities
West Bengal
₹1,000 to ₹2,500
Standard rates
Uttar Pradesh
₹500 to ₹2,000
Moderate rates
Rajasthan
₹500 to ₹1,500
Lower rates for charitable organizations
IncorpX charges government fees at actuals with no markup. Our professional fee of ₹1,999 covers the complete filing process from name reservation through incorporation. Competitor pricing ranges from ₹12,999 (LegalRaasta) to ₹15,000+ (IndiaFilings, Vakilsearch). Government fees and stamp duty are always paid directly to the respective authorities. All filings are backed by our CA/CS team with dedicated support until your Certificate of Incorporation is issued.
Section 8 Company Naming Guidelines
The name of a Section 8 Company must reflect its charitable purpose and comply with MCA naming rules. Unlike regular companies, Section 8 Companies are exempt from using "Limited" or "Private Limited" as a suffix.
Common name suffixes: Foundation, Forum, Association, Council, Federation, Organization, Society, Trust
Naming rules:
Name must reflect charitable objectives (e.g., "Green India Environmental Foundation")
Cannot contain "Limited" or "Private Limited" (Section 8(1) exemption)
Must not be identical or deceptively similar to existing companies on MCA records
Words like "National," "Indian," "Republic," or "Governor" require additional government approval
RUN form allows 2 names per application at ₹1,000 government fee
Name reservation is valid for 20 days after approval
Check name availability on the MCA portal before filing RUN. Use coined or invented words combined with charitable indicators (e.g., "Sakshaam Education Foundation" instead of generic "Education Trust"). Keep 2 to 3 alternative names ready. Consider filing for Trademark Registration after incorporation to protect your organization's name and logo.
Section 8 Company vs Trust vs Society
Choosing the right NGO structure determines your organization's credibility, funding access, compliance burden, and operational scope. Here is a detailed comparison of the three main non-profit structures in India:
Corporate Structure and Credibility: MCA-registered entity with CIN, recognized by banks, government agencies, and CSR departments for institutional funding.
No Minimum Capital: Start with ₹10,000 or any amount. No ₹1 lakh or ₹10 lakh floor like other company structures.
Tax Benefits: 12A exemption (100% income tax free), 80G (donor deductions of 50% to 100%), and stamp duty concessions in most states.
Limited Liability: Personal assets of members are protected from company debts and obligations, unlike Trust structures.
CSR and FCRA Access: Preferred entity for Section 135 CSR spending. Eligible for FCRA foreign donations after 3 years of operation.
Perpetual Existence: Company survives changes in membership, providing institutional stability for long-term charitable work.
Disadvantages:
No Profit Distribution: All income must be applied to charitable objectives. Violating this attracts fines of ₹10 lakh to ₹1 crore under Section 8(11).
Higher Compliance Burden: Annual filings include AOC-4, MGT-7A, statutory audit, ITR, and Board meetings. Compliance costs more than Trust or Society.
Longer Registration Time: 15 to 20 working days vs 7 to 10 days for Trust/Society due to the INC-12 license approval process.
License Revocation Risk: Regional Director can revoke the Section 8 license under Section 8(4) if the company deviates from its charitable objectives.
Under Section 8(11), distributing profits to members can result in imprisonment of up to 3 years for directors and fines of ₹25,000 to ₹25 lakh. All surplus income must be re-invested into the company's stated charitable objectives.
Annual Compliance for Section 8 Company
Section 8 Companies face dual compliance obligations: MCA filings (AOC-4, MGT-7A, DIR-3 KYC) and Income Tax filings (ITR, 12A renewal). Missing deadlines triggers penalties and, in extreme cases, license revocation under Section 8(4). Here is the complete compliance calendar:
Compliance
Deadline
Form/Action
Penalty for Default
Statutory Audit
Within 30 days of incorporation (first auditor)
Appoint CA auditor
₹5,000/month
Board Meetings
Minimum 2 per year (gap of 6 months or less)
Board resolution
₹1 lakh on company
Annual General Meeting (AGM)
Within 6 months of financial year end
Notice + minutes
₹1 lakh on company
Financial Statements (AOC-4)
Within 30 days of AGM
Form AOC-4
₹100/day per form
Annual Return (MGT-7A)
Within 60 days of AGM
Form MGT-7A
₹100/day
Director KYC (DIR-3 KYC)
30 September each year
DIR-3 KYC
₹5,000 late fee
Income Tax Return (ITR)
31 October (audit cases)
ITR-6
Interest + penalty
12A Activity Report
Annual, with ITR
Form 10B/10BB
12A exemption at risk
DARPAN Profile Update
Annual
Online at ngodarpan.gov.in
Grant ineligibility
CSR-1 Registration
One-time (before receiving CSR funds)
Form CSR-1
CSR fund ineligibility
Under Section 8(4), repeated non-compliance with annual filings can be grounds for the Regional Director to revoke your Section 8 license. Ensure all MCA and Income Tax filings are completed before their respective deadlines. Consider engaging professional Section 8 Company annual compliance services to avoid penalties.
After Registration: 12A, 80G, DARPAN & FCRA
Incorporation is just the first milestone. Complete these post-registration steps to make your Section 8 Company fully operational, tax-exempt, and eligible for institutional funding:
1. Open a Corporate Bank Account
Open a current account in the company's name using the Certificate of Incorporation, company PAN, Board resolution, and authorized signatory details. Most banks require this within 7 to 15 days of incorporation. Banks like SBI, HDFC, and ICICI offer specialized NGO accounts.
2. Appoint a Statutory Auditor
Appoint a practicing Chartered Accountant as the company's statutory auditor within 30 days of incorporation under Section 139 of the Companies Act, 2013. File Form ADT-1 with the RoC within 15 days of the appointment. The auditor conducts the annual financial audit and certifies financial statements.
3. Apply for 12A and 80G Registration
File Form 10A on the Income Tax e-filing portal for 12A and 80G registration. 12A exempts your company's income from income tax. 80G enables donors to claim 50% to 100% deductions on donations. The provisional certificate is valid for 5 years. Professional fee for this ranges from ₹5,000 to ₹10,000. Read more about the NPO taxation framework for current rules.
4. Register on NGO-DARPAN Portal
Create a free account at ngodarpan.gov.in and submit your Certificate of Incorporation, company PAN, registered office address, and director details. DARPAN registration is required for receiving government grants and CSR funds from public sector undertakings. Processing takes 5 to 7 working days.
5. Apply for FCRA Registration (for Foreign Funding)
If your organization plans to receive foreign donations, apply for FCRA registration with the Ministry of Home Affairs after completing 3 years of operations. Prior Permission is available for specific projects without the 3-year requirement. FCRA-registered organizations must maintain a designated bank account with SBI, New Delhi Main Branch.
6. Optional: GST and Professional Tax
GST registration becomes mandatory only if your annual turnover exceeds ₹20 lakh (₹10 lakh for special category states) or you provide taxable services. Many charitable services are exempt under Entry 1 of Notification 12/2017. Professional tax and Shop & Establishment Act registration depend on your state of registration and employee count.
Section 12AA was the earlier provision for income tax exemption. Under the Finance Act 2020, all new registrations happen under Section 12AB. If your organization holds an older 12AA Registration, it must be migrated to 12AB. New Section 8 Companies apply directly under Section 12AB using Form 10A.
Forms Required for Section 8 Company Registration
Section 8 registration involves more forms than regular company incorporation because of the mandatory license approval process. Here is the complete list:
Form Number
Purpose
Filed With
Fee
RUN
Name reservation
Central Registration Centre
₹1,000
INC-12
Section 8 license application
Regional Director
₹2,000 to ₹5,000
INC-13
MOA format for Section 8
Attached with INC-12
Included
INC-14
CA/CS/CWA declaration
Attached with INC-12
Included
INC-15
Directors' declaration
Attached with INC-12
Included
INC-16
License certificate issued
By Regional Director
N/A
SPICe+ (INC-32)
Company incorporation
Registrar of Companies
₹500 to ₹2,500
DIR-2
Director consent
Attached with SPICe+
Included
DIR-3 KYC
Director KYC
MCA Portal
₹0 (₹5,000 if delayed)
INC-9
Director declaration
Attached with SPICe+
Included
INC-22
Registered office notice
RoC
₹200
Form INC-14 requires a practicing CA, CS, or CWA to certify that the proposed Section 8 Company will operate for charitable objectives and comply with all license conditions. IncorpX's in-house CA/CS team handles this certification as part of the standard package.
Penalties for Section 8 Company Non-Compliance
Section 8 Companies face stringent penalties for non-compliance, reflecting the higher standard of accountability expected from government-licensed non-profit entities:
Non-Compliance
Section
Penalty
Profit distribution to members
Section 8(11)
Fine ₹10 lakh to ₹1 crore on company
Fraudulent operations
Section 8(11)
Director imprisonment up to 3 years + fine ₹25,000 to ₹25 lakh
License condition violation
Section 8(4)
License revocation by Regional Director
Late AOC-4 filing
Section 137
₹100 per day penalty per form
Late MGT-7A filing
Section 92
₹100 per day penalty
Non-appointment of auditor
Section 139
₹5,000 per month penalty
Not holding AGM
Section 96
₹1 lakh on company + ₹5,000 on officers
DIR-3 KYC default
Rule 12A
₹5,000 late fee
Non-filing of ITR
Income Tax Act
Interest u/s 234A + penalty u/s 271F
Related Services for Your NGO
Build a complete non-profit infrastructure with these complementary services:
State-level registration for membership-based organizations in education, sports, and cultural activities. Requires 7 founding members.
FAQs on Section 8 Company Registration
Here are answers to the most common questions about Section 8 Company registration, covering eligibility, costs, documents, process timelines, and post-registration compliance.
A Section 8 Company is a non-profit organization registered under Section 8(1) of the Companies Act, 2013. It promotes objectives like education, science, art, sports, charity, social welfare, or environmental protection. Unlike regular companies, it cannot distribute profits to its members and operates without adding "Limited" or "Private Limited" to its name.
A Section 8 license is a Central Government permission issued by the Regional Director in Form INC-16 under Section 8(1) of the Companies Act, 2013. This license authorizes formation of a non-profit company. Without this license, the Registrar of Companies cannot process the SPICe+ incorporation application. License approval typically takes 7 to 10 working days.
A Section 8 Company cannot carry on business for profit. It can generate revenue through service fees, donations, grants, and membership subscriptions, but all income must be applied towards its charitable objectives under Section 8(1). Distributing profits or dividends to members attracts penalties of ₹10 lakh to ₹1 crore under Section 8(11).
A Section 8 Company is not automatically tax-free. It must separately obtain 12A registration from the Income Tax Department for income tax exemption and 80G registration to enable donors to claim deductions. Without 12A, the company pays tax at normal rates. The provisional 12A certificate is valid for 5 years and must be converted to regular registration.
Yes, a Section 8 Company is a separate legal entity under the Companies Act, 2013 and can own property in its own name. It can purchase, lease, or receive donated immovable and movable property. All property acquisitions must serve the company's charitable objectives stated in the MOA. Property disposal requires Board approval and regulatory compliance.
Distributing profits to members violates Section 8(1) conditions. Under Section 8(11), penalties include a fine of ₹10 lakh to ₹1 crore on the company and imprisonment up to 3 years plus fine of ₹25,000 to ₹25 lakh for directors. The Regional Director can also revoke the Section 8 license under Section 8(4).
A Private Section 8 Company requires minimum 2 directors and 2 members. A Public Section 8 Company requires minimum 3 directors and 7 members. At least 1 director must be an Indian resident who has stayed in India for 182+ days in the preceding calendar year. Directors and members can be the same persons.
FCRA stands for the Foreign Contribution (Regulation) Act, 2010. Section 8 Companies seeking to receive foreign donations or grants must obtain FCRA registration from the Ministry of Home Affairs. The company must be operational for 3+ years before applying for regular FCRA registration, though prior permission is available for specific projects.
Yes, a Section 8 Company can hire full-time and part-time employees and pay salaries and wages. Employee compensation is treated as operational expenditure, not profit distribution. The company must comply with EPFO, ESIC, and professional tax regulations. Staff salaries should be reasonable and aligned with the company's non-profit objectives and financial resources.
Prominent Section 8 Companies include the Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), NASSCOM, Teach for India Foundation, and Goonj. These organizations demonstrate that Section 8 Companies can operate at national scale while maintaining their non-profit character under the Companies Act, 2013.
A Section 8 Company registration has perpetual existence as long as it complies with the Companies Act, 2013 and the license conditions. There is no renewal required for the incorporation itself. However, the 12A tax exemption certificate requires conversion from provisional (5-year validity) to regular registration. Annual compliance filings must continue every year.
Yes, an NRI can be a director in a Section 8 Company. However, at least 1 director must be an Indian resident (stayed in India for 182+ days in the preceding calendar year) under Section 149(3) of the Companies Act, 2013. NRI directors need a valid passport, foreign address proof, and DSC issued by an Indian certifying authority.
Section 25 companies existed under the Companies Act, 1956, which was repealed when the Companies Act, 2013 came into effect. Section 8 replaces Section 25 with stricter compliance requirements and higher penalties. Existing Section 25 companies were automatically deemed Section 8 companies without re-registration. The core non-profit character remains identical.
Yes, a Section 8 Company is an eligible CSR implementing agency under Rule 4 of the Companies (CSR Policy) Rules, 2014. Companies with net worth of ₹500 crore+, turnover of ₹1,000 crore+, or net profit of ₹5 crore+ must spend 2% of average net profit on CSR. Section 8 Companies with 3+ years of track record qualify as implementing agencies.
Register in 8 steps: (1) Obtain DSC for directors, (2) reserve name via RUN on MCA portal (₹1,000), (3) draft MOA in INC-13 format and AOA, (4) apply for license via Form INC-12 to Regional Director, (5) receive license in INC-16, (6) file SPICe+ for incorporation, (7) receive Certificate of Incorporation with CIN, (8) complete post-registration (bank account, auditor, 12A/80G).
Form INC-12 is the license application filed with the Regional Director under Section 8(1) of the Companies Act, 2013. It requires attachments: Form INC-14 (CA/CS/CWA declaration), Form INC-15 (directors' declaration), draft MOA and AOA, and projected income-expenditure for 3 years. Government fee ranges from ₹2,000 to ₹5,000. File electronically on the MCA portal.
Complete Section 8 registration takes 15 to 20 working days: DSC procurement (1 to 2 days), name reservation via RUN (2 to 3 days), license approval via INC-12 (7 to 10 days), and SPICe+ incorporation (3 to 5 days). Delays occur if the Regional Director raises queries on the INC-12 application or if name reservation is rejected and re-applied.
Apply for 12A and 80G on the Income Tax e-filing portal (incometax.gov.in) using Form 10A after receiving the Certificate of Incorporation. Submit: incorporation certificate, MOA, AOA, PAN of the company, and activity report. The provisional certificate is valid for 5 years. Apply within 30 days of incorporation for provisional registration. Professional fee ranges from ₹5,000 to ₹10,000.
File the RUN (Reserve Unique Name) form on the MCA portal with 2 proposed names. Each name must reflect charitable objectives and cannot contain "Limited" or "Private Limited". Government fee is ₹1,000 per application. The Central Registration Centre processes applications within 2 to 3 working days. If rejected, you can re-apply with new names.
Key forms include: RUN (name reservation), INC-12 (license application), INC-13 (MOA format for Section 8), INC-14 (CA/CS/CWA declaration), INC-15 (directors' declaration), INC-16 (license certificate), SPICe+ (INC-32) (incorporation), DIR-2 (director consent), and INC-9 (director declaration). All forms are filed electronically on the MCA portal.
Visit ngodarpan.gov.in and create an account. Submit: Certificate of Incorporation, PAN of the company, registered office address, details of directors/members, and Aadhaar of the signatory. Registration is free of cost. DARPAN registration is required for eligibility to receive government grants and CSR funds. Processing takes 5 to 7 working days.
SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) is the integrated MCA incorporation form (INC-32). For Section 8, attach the INC-16 license, signed MOA/AOA, and director KYC. SPICe+ simultaneously allots PAN, TAN, EPFO, ESIC, and GST registration. Government fee is ₹500 to ₹2,500 based on authorized capital.
Yes, the entire Section 8 registration process is 100% online through the MCA portal (www.mca.gov.in). Name reservation (RUN), license application (INC-12), and incorporation (SPICe+) are all filed electronically with DSC. No physical document submission is required. The Certificate of Incorporation is issued digitally with a unique CIN (Corporate Identity Number).
Total cost ranges from ₹8,000 to ₹25,000 for 2 directors. Breakdown: government fees (SPICe+ ₹500 to ₹2,500, INC-12 license ₹2,000 to ₹5,000, RUN ₹1,000), stamp duty (₹500 to ₹5,000 state-dependent), DSC (₹800 to ₹2,000 per director), and professional fee starting at ₹1,999 with IncorpX. Government fees are charged at actuals with no markup.
Government fees include: RUN name reservation ₹1,000, Section 8 license via INC-12 ₹2,000 to ₹5,000, SPICe+ incorporation ₹500 to ₹2,500 (based on authorized capital), and stamp duty ₹500 to ₹5,000 (varies by state). DIN allotment is free when applied through SPICe+. Total government fees typically range from ₹4,000 to ₹14,000.
Stamp duty for Section 8 Companies varies by state. Estimated ranges: Delhi ₹500 to ₹1,000, Maharashtra ₹1,000 to ₹3,000, Karnataka ₹500 to ₹2,000, Tamil Nadu ₹1,000 to ₹3,000, Gujarat ₹500 to ₹1,500. Many states offer concessional or reduced stamp duty for charitable and non-profit entities. Stamp duty is paid electronically during SPICe+ filing.
There is no minimum authorized capital requirement for a Section 8 Company under the Companies Act, 2013. You can register with capital as low as ₹10,000 or even ₹1 lakh depending on your operational needs. Lower capital means lower government fees (SPICe+ fee is based on authorized capital). Most Section 8 Companies start with ₹1 lakh authorized capital.
GST registration is not automatically required. It becomes mandatory if the Section 8 Company's annual turnover exceeds ₹20 lakh (₹10 lakh for special category states) or if it provides taxable services. Many Section 8 Companies providing educational or charitable services are exempt under Entry 1 of Notification 12/2017. SPICe+ offers optional GST registration during incorporation.
Tax benefits include: 12A registration for 100% income tax exemption, 80G registration enabling donors to claim 50% to 100% deductions, CSR funding eligibility under Section 135, stamp duty concessions in most states, and GST exemptions for specific charitable services. Section 35AC benefits and concessional TDS rates also apply. All benefits require separate applications post-incorporation.
IncorpX's package starting at ₹1,999 includes: name reservation via RUN, Section 8 license application (INC-12), MOA and AOA drafting in INC-13 format, SPICe+ incorporation filing, PAN and TAN allotment, Certificate of Incorporation, and expert CA/CS support throughout the process. Government fees and stamp duty are charged at actuals. 12A/80G registration is available as an add-on service.
IncorpX's professional fee starts at ₹1,999, compared to LegalRaasta at ₹12,999 and IndiaFilings/Vakilsearch at custom-quote pricing (typically ₹10,000+). IncorpX charges government fees at actuals with no markup, offers complete end-to-end filing with CA/CS support, and covers all stages from name reservation through incorporation.
The Section 8 Company registration itself has no renewal fee; it has perpetual existence. However, annual compliance costs include: statutory audit (₹5,000 to ₹15,000), AOC-4 and MGT-7A filing fees (₹200 to ₹600 per form), ITR filing, and professional fees for compliance management. Non-compliance attracts additional penalties of ₹100 per day per form.
A Section 8 Company is governed by the Companies Act, 2013 (central law) and registered with MCA, while a Trust operates under the Indian Trusts Act, 1882 (state law) and registered with the Sub-Registrar. Section 8 offers separate legal entity status, limited liability, and perpetual succession. Trusts are simpler to form but lack corporate governance features. Section 8 Companies have better credibility for CSR funding.
A Section 8 Company is registered under the Companies Act, 2013 with MCA, while a Society is registered under the Societies Registration Act, 1860 with the state Registrar. Section 8 requires minimum 2 members (private) while a Society needs 7 members. Section 8 Companies have stricter compliance but stronger legal standing, pan-India operations, and better access to CSR funds and FCRA donations.
Section 8 Company is best for large-scale NGOs seeking CSR funding, pan-India operations, and foreign donations (FCRA). Trusts suit religious/charitable activities with 2 to 3 trustees and minimal compliance. Societies work for membership-based organizations in education or sports. Choose Section 8 if you need corporate credibility, limited liability, and access to institutional funding.
Yes, conversion is possible under Section 8(4) of the Companies Act, 2013, but requires Central Government approval through the Regional Director. The company must demonstrate that its charitable objectives are no longer viable. All assets and funds must be transferred to another Section 8 Company or NGO; members cannot receive distributed assets. Conversion is rare and heavily scrutinized.
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