Company Registration

Section 8 Company Registration in India

A Section 8 company is a non-profit formed to promote charity, education or social good. In short, section 8 company registration gives your cause a trusted corporate structure with limited liability. However, the licence and filings must be exact. Therefore, Prospect Legal handles your section 8 company registration end to end — from the licence to the incorporation certificate.

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10+

Years in Legal Practice

Non-Profit

Corporate Trust

2 Directors

Minimum Needed

End-to-End

Licence to COI

Give Your Cause Structure

What is a Section 8 company?

A Section 8 company is a non-profit registered under the Companies Act, 2013. Simply put, it works for charity, education, art or similar aims. Also, it cannot pay profits to its members. Therefore, all income goes back into the cause.

This structure suits NGOs and social ventures. First, it carries more trust than a trust or society. Next, it gives limited liability to members. Also, it can apply for 12A and 80G tax benefits. Because of this, serious non-profits choose it.

Why choose a Section 8 company?

Section 8 company registration offers clear advantages. In practice, these are the main ones.

  • High credibility. Notably, donors and grant-givers trust a Section 8 company.
  • Limited liability. Moreover, members are protected from the entity’s debts.
  • Tax benefits. Also, it can seek 12A and 80G registrations.
  • Separate legal identity. Finally, it can own assets and sign contracts in its own name.

Eligibility and legal requirements

A Section 8 company is formed under Section 8 of the Companies Act, 2013. In short, you need at least two directors and two shareholders, and at least one director must be resident in India. Also, there is no minimum capital requirement, and profits cannot be shared with members. Next, you need a clear non-profit object and a registered office. Accordingly, we arrange all of these for you.

The licence and charter documents are specific. First, the memorandum is filed in Form INC-13, with a declaration by a practising professional in Form INC-14 and by each applicant in Form INC-15. Second, for a new company the Section 8 licence is granted through the SPICe+ application itself, so a separate Form INC-12 is needed only when an existing company seeks the licence. Therefore, we prepare the object clause and these forms so the licence is approved smoothly.

Documents required for Section 8 company registration

You need only a few documents to start. Also, our team checks each one before filing. As a result, approval stays smooth. Here is the list:

  • PAN and Aadhaar of all directors and members
  • Passport-size photos of the directors
  • Address proof — bank statement or utility bill
  • Proof of the registered office, such as a rent agreement
  • A No Objection Certificate from the property owner
  • A note on the objects and planned activities

Section 8 company registration — step by step

The process is simple with expert help. Moreover, Prospect Legal handles every step for you. Here is how it works:

Step 1 — Get DSC and DIN

First, we obtain a Digital Signature Certificate for each director. Then, we apply for the Director Identification Number.

Step 2 — Reserve the name and apply for the licence

Next, we reserve the name and apply for the Section 8 licence. Also, we draft the object clause carefully.

Step 3 — File SPICe+ for incorporation

Then, we file SPICe+ with the MOA and AOA. Also, PAN and TAN are applied for together.

Step 4 — Receive the incorporation certificate

Finally, the MCA issues the Certificate of Incorporation. After that, your non-profit is ready to operate.

Section 8 company vs trust vs society

Founders often compare the three non-profit forms. In short, they differ in trust, compliance and reach. The table makes it clear.

PointSection 8 CompanyTrustSociety
Governing lawCompanies Act, 2013Trust ActSocieties Act
CredibilityHighestModerateModerate
ComplianceStructuredLightModerate
Best forGrants and CSR fundingFamily or private charityMembership-based groups

Cost, timeline and post-incorporation steps

Section 8 company registration is quick with the right help. In practice, incorporation takes a few working days once the licence is approved. Because government fees vary by state and capital, we quote the exact figure upfront.

A few steps follow incorporation. First, open a company bank account. Next, apply for 12A and 80G registrations. Also, register on the NGO Darpan portal. Therefore, we guide you through each one.

Section 8 company compliance & registrations

A Section 8 company runs full company-law compliance plus the tax and donation registrations that make it fundable. In short, we set up and track each one for you.

Filing / registrationFormWhen
First auditor appointmentADT-1Within 30 days of incorporation
Income-tax exemption (provisional)Form 10A (12AB)After incorporation, to claim 12A
80G donor deductionForm 10A / 10ABWith or after 12AB
CSR funding eligibilityForm CSR-1Before receiving CSR funds
Financial statementsAOC-4Within 30 days of the AGM
Annual returnMGT-7Within 60 days of the AGM
Director KYCDIR-3 KYCBy 30 September every year

What makes up the cost of registration?

The total cost has a few clear parts. Also, government charges vary by state, so we quote the exact figure upfront. Here is what it covers.

ComponentWhat it coversNotes
Digital Signature (DSC)A signature for each directorOne-time, per person
Name & licenceName reservation and the Section 8 licenceFiled within SPICe+
MOA & AOA draftingINC-13 memorandum and object clauseMust pass the licence check
MCA filing feeThe SPICe+ incorporation filingSection 8 gets fee relief
PAN & TANApplied within SPICe+Included in the filing
Professional feeOur end-to-end handling and 12A/80G prepFixed and quoted upfront

Why choose Prospect Legal for Section 8 company registration?

Many portals just file a form. Few, however, guide you like a partner. Here is what sets us apart:

  • Fixed pricing. Because our fees are clear, you face no surprises.
  • Strong object drafting. Also, we frame objects that pass the licence check.
  • Tax-benefit ready. Next, we prepare you for 12A and 80G registrations.
  • End-to-end. Moreover, we handle the licence, SPICe+ and post-setup together.
  • Real support. Above all, you can reach a human on call or WhatsApp anytime.

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Section 8 company registration — what’s included

ServiceWhat we doBenefit to you
DSC & DINDigital signatures and director IDsReady-to-file directors
Section 8 LicenceApply for the non-profit licenceA recognised non-profit
MOA & AOADraft the charter and objectsA compliant foundation
SPICe+ FilingFile incorporation with the MCAA registered company
PAN, TAN & COIApply for PAN, TAN and get the COIReady to operate
12A/80G GuidanceAdvise on tax-exemption filingsMore donor value

Related company registration services

Setting up your organisation? Therefore, explore these related services next:

Producer Company Registration

set up a farmer-owned company.

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Nidhi Company Registration

start a member-based finance company.

View service

Frequently asked questions about Section 8 company registration

What is a Section 8 company used for?

A Section 8 company promotes charity, education, art or science. Simply put, it works for a social cause, not profit. Also, its income is used only for the object. So, it suits NGOs and social ventures.

How many people are needed?

You need at least two directors and two shareholders. Also, at least one director must be resident in India. In addition, the same people can hold both roles. So, two people are enough to start.

How long does registration take?

With documents ready, it takes a few working days after the licence. However, the licence approval can add time. So, timelines vary. Meanwhile, we keep the process moving.

Is there a minimum capital?

There is no fixed minimum capital for a Section 8 company. Simply put, you can start with a suitable amount. Also, you choose the authorised capital. Therefore, the structure stays flexible.

Tax benefits and compliance

Can a Section 8 company get 12A and 80G?

Yes, a Section 8 company can apply for 12A and 80G. Notably, these give tax exemption and donor benefits. Then, we prepare the filings. Accordingly, we guide you through both.

What does registration cost?

The cost depends on the state and the authorised capital. Also, professional fees apply for the filing. Because both vary, we quote the exact figure upfront. So, there are no surprises.

What compliances apply after registration?

A Section 8 company files annual returns and financial statements. Also, it holds board and general meetings. In addition, it keeps proper books. We set these up for you.

Can a Section 8 company receive foreign donations?

Yes, but it needs FCRA registration for foreign funds. Notably, this is a separate approval. Then, we advise on eligibility. Accordingly, we guide the FCRA process.

Licence forms and tax registrations

Which forms are used for the Section 8 licence?

The memorandum is filed in Form INC-13, with a professional declaration in INC-14 and an applicant declaration in INC-15. Notably, for a new company the licence comes through SPICe+ itself. Then, INC-12 is used only when an existing company applies. So, we prepare the right set.

How does a Section 8 company get 12A and 80G?

You apply in Form 10A for provisional registration under Section 12AB, and again in Form 10A or 10AB to make it final. Also, 80G is applied for the same way. Then, 12AB gives the company tax exemption and 80G gives donors a deduction. We prepare both.

What is Form CSR-1 and do we need it?

Form CSR-1 registers your company with the MCA to receive CSR funding from other companies. Notably, without it, corporates cannot route CSR money to you. Then, we file it after incorporation. Accordingly, you become CSR-fundable.

Is there a minimum capital for a Section 8 company?

No, there is no minimum capital requirement. Simply put, you set a suitable authorised capital for the objects. Also, profits cannot be distributed to members. So, the structure stays flexible and non-profit.

Other common questions

Can members earn profit from a Section 8 company?

No, members cannot take profits or dividends. Simply put, all income stays with the cause. Also, this rule protects the non-profit status. So, it keeps donor trust high.

What is the difference between a Section 8 company and a trust?

A Section 8 company is a company with stronger governance and trust. A trust is simpler but less credible for grants. So, the company suits serious funding. Accordingly, we advise the better fit.

Do I get PAN and TAN with incorporation?

Yes, PAN and TAN are applied for within SPICe+. Also, they arrive with the incorporation. So, you do not apply separately. This saves you time.

Can Prospect Legal handle the full registration?

Yes, we manage it end to end. First, the licence, DSC and DIN. Next, SPICe+, MOA and AOA. Finally, the COI and 12A/80G guidance. Call 7000-12-7225 to begin.

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Ready to register your Section 8 company? Start today.

Do not let paperwork slow your mission. Instead, let our experts file your section 8 company registration end to end. As a result, you get a compliant non-profit, fast.

📞 Call: 7000-12-7225💬 WhatsApp UsBook Free Consultation

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