Section 8 Company Registration

A non-profit company structure for organisations with charitable, educational, social or other permitted objectives.

Overview

A Section 8 Company is a company registered under Section 8 of the Companies Act, 2013 for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or any other similar objective. The profits and income of the company must be applied towards promoting its objectives, and no dividend can be paid to its members.

Who Should Consider This Structure?

  • Non-profit organisations and NGOs
  • Charitable trusts seeking a corporate structure
  • Social enterprises with non-commercial objectives
  • Educational and research institutions
  • Organisations seeking CSR funding or government grants

Key Features

  • Non-Profit Objective: Income must be applied towards the company's stated objects
  • No Dividend: Profits cannot be distributed to members
  • Licence Requirement: Central Government licence must be obtained before incorporation
  • Credibility: Recognised structure for receiving donations, grants and CSR funds
  • Limited Liability: Members have limited liability like any other company

Documents Generally Required

  • MOA and AOA drafted with specific non-profit objects
  • PAN, Aadhaar and address proof of all directors
  • DSC and DIN for all directors
  • Registered office address proof
  • Estimated income and expenditure for the next three years
  • Declaration by each director

Step-by-Step Process

  1. Name Reservation: Apply for name approval through MCA
  2. Licence Application: Apply for licence under Section 8 with supporting documents
  3. Licence Grant: Central Government reviews and grants the licence
  4. Incorporation: File SPICe+ with the granted licence
  5. Certificate of Incorporation: MCA issues the certificate

What You Will Receive

  • Section 8 Licence from Central Government
  • Certificate of Incorporation
  • Company PAN and TAN
  • MOA and AOA

Why Choose VSB Consultants?

We assist with drafting the MOA/AOA with appropriate non-profit objects, preparing the licence application, filing with MCA and post-incorporation compliance setup including 12A and 80G registrations where applicable.

Requirements, documents, government fees, professional fees and timelines may vary depending on the applicant, jurisdiction, portal status and applicable law. The final scope will be confirmed after reviewing the specific case.

Frequently Asked Questions

Yes, a Section 8 Company can receive donations. To provide tax benefits to donors, the company should obtain 80G registration from the Income Tax Department.
A Section 8 Company can apply for 12A registration under the Income Tax Act to claim exemption on income applied towards its charitable objects.
Annual filing with MCA (AOC-4, MGT-7), income tax returns, board meetings, AGM, and maintenance of statutory registers. Similar to a Private Limited Company with some exemptions.

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