Section - 8 Company Registration

Section 8 Company Registration in India – Complete Guide

What is a Section 8 Company?

A Section 8 Company is a non-profit organization (NPO) registered under Section 8 of the Companies Act, 2013, with the objective of promoting:

• Commerce

• Art

• Science

• Sports

• Education

• Research

• Social welfare

• Religion

• Environment protection

• Charity

Key Feature:

Profits (if any) are used only to promote the charitable objectives of the company — dividends cannot be distributed to members.

Key Characteristics:

• Separate legal entity

• Limited liability for members

• Charitable or non-profit motive

• Exempt from using the words "Private Limited" or "Limited" in the name

• Eligible for tax exemptions under Section 12A & 80G of the Income Tax Act

Benefits of Section 8 Company:

• Greater credibility with government and donors

• Exemption from many taxes and stamp duties

• No minimum capital requirement

• Separate legal status, allowing it to own property and sue/be sued

• Eligibility for foreign donations under FCRA (with approval)

Eligibility Criteria:

• Minimum 2 Directors (for a private limited-style NGO)

• At least 1 Director must be an Indian resident

• Minimum 2 shareholders/members

• Non-profit objective must be clearly stated in MOA

• Must apply profits to promote its charitable purpose

Documents Required:

For Directors/Promoters:

• PAN Card

• Aadhaar/Voter ID/Passport/Driving License

• Passport-size photographs

• Bank statement or utility bill (not older than 2 months)

For Registered Office:

• Rent agreement or ownership proof

• Utility bill (electricity/water/gas)

• NOC from the property owner (if rented)

Registration Process:

1. Obtain DSC (Digital Signature Certificate)

   • For all directors/promoters.

2. Reserve Name via SPICe+ Part A

   • Include "Foundation", "Society", "Association", or "Organization" in the name.

3. Apply for License (Form INC-12)

   • Submit objectives, MOA, AOA, declaration, and financial statements to MCA for license under Section 8.

4. File Incorporation Forms (SPICe+ Part B, MoA, AoA, AGILE-Pro, INC-9, etc.)

   • Include PAN, TAN, EPFO, ESIC, and GST registration if applicable.

5. Receive Certificate of Incorporation + License under Section 8

Timeline:

Approx. 15–20 working days, subject to approval from the Ministry of Corporate Affairs (MCA).

Post-Incorporation Compliance:

• PAN and TAN allotment

• Open a bank account in the company’s name

• Apply for 12A and 80G for tax exemption

• File annual returns with the ROC

• Maintain proper books of accounts and records

• Conduct regular board meetings and maintain minutes

Why Choose SSA TAX for Section 8 Registration?

We provide expert support for:

• Drafting MOA, AOA & Objectives

• Applying for Section 8 License

• ROC Compliances & Filings

• Tax Exemption Registration (12A & 80G)

• End-to-end legal & financial advisory