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Section 8 Company registration — the serious way to run a non-profit.

The most credible legal structure for an NGO or non-profit in India — limited liability, transparent governance, and the tax benefits donors look for. We handle the Central Government licence and the full incorporation, end to end.

Updated Jul 2026Read 7 minReviewed by Founders Bridge
On this page +
  1. What is a Section 8 Company
  2. Why choose it over a Trust or Society
  3. Requirements
  4. Registration process
  5. Documents needed
  6. Tax benefits (12A & 80G)
  7. Compliance obligations
  8. FAQs
Start here

What is a Section 8 Company?

A Section 8 Company is a company registered under Section 8 of the Companies Act, 2013, for a charitable or not-for-profit purpose — promoting education, social welfare, science, sports, the environment, or similar objects of public utility. It works like a normal company but with one defining rule: its profits can never be distributed to members. All income must be applied toward its stated objectives.

It's the most respected of India's non-profit structures because it carries a company's governance and transparency — which is exactly why donors, CSR funders and government agencies tend to prefer it over a Trust or Society. Uniquely, a Section 8 Company is licensed by the Central Government and is permitted to drop "Limited"/"Private Limited" from its name.

Why this decision matters early

Your entity choice shapes how much donors and CSR funders trust you, how easily you can operate across states, and how much governance you carry. Getting it right at registration is far cheaper than restructuring a Trust or Society into a company later.

Side by side

Section 8 vs Trust vs Society — why founders pick Section 8

India recognises three main non-profit vehicles. A Trust is simple but offers weak governance and limited credibility. A Society needs members across states and can be cumbersome to run. A Section 8 Company brings corporate-grade governance, pan-India operation from a single registration, and the strongest standing with serious funders — at the cost of somewhat higher compliance.

FactorSection 8 CompanyTrustSociety
Governing lawCompanies Act, 2013Trusts ActSocieties Registration Act
GovernanceStrong (corporate)WeakModerate
Credibility with fundersHighestLowerModerate
Pan-India operationYes, single registrationVariesOften state-bound
Compliance loadMedium–HighLowMedium
Before you start

What you need to register

Requirements for a private-limited Section 8 Company:

  • Minimum 2 directors and 2 members (they can be the same people). A public Section 8 needs 3 directors and 7 members.
  • At least one director resident in India (present 182+ days in the preceding financial year).
  • No minimum capital — you can start with any amount suited to your activities.
  • A clearly charitable object — your goals must fall squarely within Section 8's permitted purposes.
  • Central Government licence — approval is required before incorporation (we obtain this as part of the process).
  • Foreign nationals may be directors, provided at least one director is a resident Indian.
Step by step

How registration works

1. DSC & DIN

Digital signatures and director IDs for all directors, filed in parallel so nothing sits idle.

2. Name approval

We reserve a name aligned with your charitable object via the MCA's RUN/SPICe+ service.

3. Section 8 licence

We apply for the Central Government licence with the draft MoA (Form INC-12, integrated via SPICe+), including the required declarations and projected income/expenditure.

4. Incorporation

SPICe+ is filed with MoA & AoA drafted specifically for a non-profit object.

5. PAN, TAN & bank

Issued together with incorporation; we help you open the account.

6. 12A & 80G

We apply for these tax-exemption registrations so the entity and its donors both get the benefits (see below).

Typical timeline

Longer than a normal company — often ~15–20 working days — because of the Central Government licensing step. Worth it for the credibility it buys.

Thinking about starting a non-profit?

We'll help you choose the right structure and handle the Section 8 licence end to end.

Before you start

Documents you'll need

  • PAN & Aadhaar of all directors and members.
  • Passport-size photographs of each director.
  • Address proof — a recent bank statement or utility bill.
  • Registered-office proof plus a No Objection Certificate (NOC) from the owner.
  • Proposed name options aligned to your charitable object.
  • A note on objects and proposed activities — used for both the MoA and the licence application.
  • Projected statement of income & expenditure — required for the licence.
Why it's worth doing right

12A and 80G — the reason to do this properly

Two registrations under the Income Tax Act make a Section 8 Company genuinely tax-efficient — and much more attractive to donors (see our full 12A & 80G explained guide):

  • 12A — exempts the company's own income from tax, provided it's applied to its objects.
  • 80G — lets your donors claim a deduction on what they give you, which materially improves fundraising.

We apply for both immediately after incorporation. If you intend to receive foreign contributions, you'll also need FCRA registration — we advise on eligibility and timing.

After registration

Ongoing compliance

A Section 8 Company carries real, corporate-grade compliance — which is what underpins its credibility. Expect annual ROC filings, board meetings and minutes, a statutory audit, an income-tax return, and — if applicable — 12A/80G renewals and FCRA returns. On dissolution, any remaining assets must transfer to another Section 8 Company with similar objects; they can't go to members. We handle the full calendar so nothing lapses. For exact registration and retainer pricing, see our pricing page or get an itemised quote on a call.

Accuracy note

Section 8 rules and thresholds (licence forms, 12A/80G, FCRA) do change periodically. We keep this page current, and our CAs confirm the latest forms and any state-specific nuances before we file for you.

Talk to us

Get a clear recommendation.

Tell us about your cause and we'll confirm Section 8 is the right structure — then handle the licence and registration end to end.

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Answers

Frequently asked questions

Can a Section 8 Company make a profit?+
It can generate a surplus, but it can never distribute it to members. All income must be re-applied to its charitable objects.
Can the founders/directors draw a salary?+
Yes — reasonable remuneration for genuine services is allowed. What's not allowed is distributing profit as dividends.
Is there a minimum capital requirement?+
No. You can start with any capital appropriate to your planned activities.
How is it better than a Trust or Society?+
Stronger governance, pan-India operation from a single registration, and the highest credibility with donors, CSR funders and government — which is why serious non-profits choose it.
How long does registration take?+
Typically around 15–20 working days — longer than a normal company because of the Central Government licence step.
Can it receive foreign donations?+
Only after obtaining FCRA registration. We advise on eligibility and handle the process when you're ready.
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