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Section 8 Company Registration in India: A Complete Guide
A Section 8 company is a non-profit company registered under the Companies Act, 2013. It is for charitable and social objectives, where any surplus must be used only for the mission and not paid as a dividend to members. A Section 8 company provides a structured legal identity along with government-backed credibility. Allowing stronger support from donors, CSR contributors, and grant-making bodies.
In this blog, we'll discuss what a Section 8 company is, the registration process, and the documents required for a Section 8 company. If your NGO and social project plan to sell products online in 2026 for fundraising, Gonukkad can be your growth partner for seller account setup, listing, optimization, and ad campaigns.
Key Takeaways
- A Section 8 company is a not-for-profit company, and profits are allowed, but profit distribution is not permitted.
- You need a licence for a section 8 company from the government and the authority route before final incorporation is completed.
- A Section 8 company requires a minimum of 2 directors and 2 members.
- Keep MOA, AOA, and a 3-year projected income-expenditure ready, as these are often asked in the process.
- After registration, annual ROC filings and basic governance are compulsory, or non-compliance can create penalties.
What Is A Section 8 Company
It’s a company made for social or charitable objectives like education, research, social welfare, charity, environmental protection, etc. It must use its income to promote its objectives. The law also requires that the company intends to prohibit payment of dividends to its members, so no profit sharing like normal businesses.
Why Do People Choose A Section 8 Company
Section 8 company gives a structured legal identity and credibility, which helps with donors, CSR, and grants. They also mention operational advantages like no minimum capital requirement and perpetual succession.
From a practical angle, a Section 8 company is often chosen when you want strong governance and transparency because you’ll have formal filings and a standard corporate structure. It becomes useful later if you’re raising CSR funds or scaling across cities.
Step-By-Step Process For Section 8 Company Registration
The Section 8 company registration process can feel long, but it becomes easy when broken into small steps.
Below we've listed the key steps for Section 8 company registration:
- Get DSC a Digital Signature Certificate for the proposed directors.
- Get a DIN, a Director Identification Number.
- Name reservation, they mention using RUN for name reservation.
- Draft MOA & AOA for objectives and governance rules.
- Apply for a Section 8 licence by submitting INC-12 with MOA or AOA and other attachments to the Regional Director.
- After licence approval, file incorporation with ROC using SPICe+.
- After starting a company, you need to get a PAN, TAN, and other registrations like GST/EPF/ESIC if they apply to your business.
Documents Required for Section 8 Company Registration
Below, we've listed the documents required for the Section 8 company:
- Directors’ KYC: PAN, Aadhaar, Passport, and photographs.
- Registered Office Proof: Utility bill, rent agreement, and NOC from the owner.
- Draft MOA & AOA clearly stating objectives.
- Other attachments such as projected income and expenditure for 3 years, board resolutions, and DSCs.
If the Documents required for the Section 8 company are incomplete, the process usually slows down because authorities ask for resubmission or clarification. So it's advisable to keep everything scanned and consistent.
Section 8 Company Tax Exemptions
Many people think that having a Section 8 company means you automatically don’t have to pay taxes, but that’s not true.
A Section 8 company can get tax exemptions under sections 12A and 80G of the Income Tax Act. In simple terms, while the Section 8 company setup is useful, you still need to apply separately for the necessary tax registrations like 12A and 80G.
These approvals come with specific conditions. So, when someone asks about tax benefits for a Section 8 company. The best advice is first to set up the company, and then apply for the right tax registrations as needed.
What Are The Fees And Timeline For Section 8 Company Registration
Getting a Section 8 company registered usually costs between ₹15,000 and ₹30,000, which includes government and professional fees. It can take about 20 to 30 working days from when you submit your papers to when your NGO is officially set up.
To avoid any delays, it's important to prepare your documents properly.
If you have a launch date in mind for your NGO project, make sure to give yourself some extra time, as getting the license and incorporation can take longer than expected.
Conclusion
A Section 8 company is a strong choice when the goal is impact, transparency, and long-term credibility. But only if you’re ready for proper filings and governance. If your Section 8 initiative also wants to sell products online to raise funds or support beneficiaries, Gonukkad can be your growth partner for marketplace onboarding.
Related Post:
1. A Step-to-Step Guide on How to Register a Trademark in India
2. How to Register a Private Limited Company in India: Complete Process
3. One Person Company Registration Made Easy with GoNukkad
4. Documents Required for GST Registration & Procedure to Apply in 2025
Q. What is a Section 8 company?
A. A section 8 company is a non-profit company for charitable or social objectives where profits must be used for the objectives and dividends are prohibited.
Q. Is Section 8 company registration different from regular Pvt Ltd registration?
A. Yes, Section 8 needs a licence process (INC-12 route) before final incorporation filing, unlike a standard company incorporation flow.
Q. What are the documents required for Section 8 company registration?
A. Common documents include directors’ PAN, Aadhaar, Passport, photos, registered office proofs, MOA or AOA drafts, and a 3-year projected income & expenditure statement.
Q. What are Section 8 company compliance requirements after incorporation?
A. You must do annual ROC filings like AOC-4 and MGT-7 and maintain governance requirements like statutory registers and meetings, along with tax filings.
Q. Are Section 8 company tax exemptions automatic?
A. No, while the Section 8 company setup is useful, you still need to apply separately for the necessary tax registrations like 12A and 80G.
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