What is Section 8 Company?
A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act, 2013. Its profits must be used only to promote its objects and cannot be paid as dividends to members.
It is considered the most credible form of NGO in India. It does not need minimum capital, can use names without "Limited", and becomes eligible for 12A and 80G registration to give tax benefits to donors.
Who Needs Section 8 Company?
- NGOs and charitable organisations
- Educational and research institutions
- Foundations working in health, environment, sports or culture
Advantages of Section 8 Company
Preferred by donors, CSR funders and government bodies.
Eligible for 12A exemption and 80G certification.
Start with any amount.
Lower or no stamp duty on incorporation in most states.
Documents Required for Section 8 Company
Directors (min. 2)
- PAN card
- Aadhaar card
- Passport-size photograph
- Email ID and mobile number
Organisation
- Objects and planned activities for the first 3 years
- Estimated income and expenditure for 3 years
- Latest electricity / water / gas bill (not older than 2 months)
- Rent agreement and NOC from owner (if rented)
- Sale deed or property tax receipt (if owned)
We share an exact checklist for your case after the consultation. Scanned copies or clear phone photos are fine.
How We Get It Done
- 1DSC & name
Digital signatures and name reservation.
- 2Drafting
MOA, AOA and declarations in INC-13, INC-14 and INC-15.
- 3Licence & incorporation
SPICe+ filed along with the Section 8 licence application.
- 4Certificate
Licence and Certificate of Incorporation are issued.
- 512A & 80G
We can apply for tax exemption registrations after incorporation.
Frequently Asked Questions
Yes. Reasonable salaries can be paid to employees and directors for services rendered.
Only after obtaining FCRA registration, which needs 3 years of activity, or prior permission.
A Section 8 company is regulated by MCA, has a clearer governance structure and is easier to manage, which is why donors and CSR funds prefer it.