Section 8 Company Registration

Non-Profit Motive – Cannot distribute profits to members.

Government Approval Required – Need license from Central Government (MCA).

Limited Liability – Members are liable only to the extent of their shareholding.

Tax Benefits – Eligible for tax exemptions under Sections 12A and 80G of Income Tax Act.

Overview

Section 8 Company is a legal structure preferred by NGOs and charitable trusts aiming for greater credibility and compliance. It operates just like any other company but with a non-profit objective. Registration offers benefits like corporate structure, tax exemptions, and donor confidence.

Documents Required

PAN & Aadhaar of all directors
Passport-sized photos
Address proof of directors (Bank statement/Utility bill)
Office address proof (rent agreement/NOC/utility bill)
MOA & AOA
Digital Signature Certificate (DSC)
Director Identification Number (DIN)

Registration Process

Obtain DSC & DIN
Apply for Name Approval (SPICe+ Part A)
Draft MOA & AOA with non-profit objectives
File SPICe+ Part B form along with license application (INC-12)
Central Government issues license under Section 8
Incorporation Certificate issued by RoC

Benefits

Legal Recognition for NGO
Access to Grants & Donations
Exemption from Stamp Duty
Enhanced Credibility among Donors & Institutions

Eligibility

At least 2 directors (for a private company) or 3 (for public)
At least one Indian resident director
Non-profit objective
No profit distribution among members
Registered office in India

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Frequently Asked Questions (FAQs)

Yes, but profits must be reinvested in the charitable objectives, not distributed.

No. You must separately apply for 12A and 80G exemptions under the Income Tax Act.

Yes, but at least one director must be an Indian resident.