Looking to start a non-profit in India? A Section 8 Company might be the best option. Whether your goal is to work in education, healthcare, the arts, or social welfare, this structure offers credibility, tax benefits, and access to funding—all while keeping your mission at the center.
In this simplified guide, we’ll walk you through the essentials: what a Section 8 Company is, why it matters, how to register, and everything in between.
What is a Section 8 Company?
A Section 8 Company is a legal structure under the Companies Act, 2013, meant for organizations that operate for charitable or social causes. These include areas like education, science, environmental protection, arts, and more.
Unlike traditional businesses, these companies cannot distribute profits. Instead, any income or surplus must be used to advance their stated objectives.
Why Register a Section 8 Company?
Here’s why many social entrepreneurs and NGOs choose this model:
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Tax Exemptions: Get benefits under Sections 12A and 80G, allowing donors to claim deductions and easing your tax burden.
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No Minimum Capital: You can start with any amount—no capital limit.
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Legal Entity Status: Your company is officially recognized and can own assets, open bank accounts, and sign contracts.
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Limited Liability: Directors and members are only liable up to their shareholding.
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Access to Funding: Eligible for government schemes, foreign funding (with FCRA), and CSR donations.
Who Can Register?
To incorporate a Section 8 Company, you’ll need:
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At least 2 directors and 2 shareholders
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1 resident Indian director
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A registered address in India
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A clear charitable or non-profit purpose
Documents You’ll Need
Here’s a checklist of required documents:
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PAN & Aadhaar of all directors and shareholders
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Digital Signature Certificate (DSC)
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Director Identification Number (DIN)
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Memorandum of Association (MoA) and Articles of Association (AoA)
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Address proof of your registered office
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Declarations in INC-14 (from a professional) and INC-15 (from directors)
How to Register: Step-by-Step Process
1. Get DSC (Digital Signature Certificate)
Needed for digitally signing incorporation forms.
2. Apply for DIN (Director Identification Number)
Each director must have a valid DIN, issued by the MCA.
3. Reserve Your Company Name
Use the MCA’s RUN (Reserve Unique Name) service to secure a suitable name.
4. File SPICe+ Form
This is an all-in-one form for registration, including PAN, TAN, MoA, AoA, and more.
5. Receive Incorporation Certificate
Once approved, you’ll receive your Certificate of Incorporation and Corporate Identification Number (CIN).
Track Your Application
To check the status of your application or download official documents, visit the MCA Portal and search using your company name or CIN.
FAQs
Q: How many people are needed to start a Section 8 Company?
A minimum of 2 directors and 2 shareholders.
Q: Can the process be completed online?
Yes, the entire process is handled through the MCA portal.
Q: Can Section 8 Companies accept donations?
Yes, and with 12A/80G registration, donors get tax benefits.
Q: Is an office address in India required?
Yes, you must provide a physical registered address.
Final Words
Setting up a Section 8 Company is a powerful way to create a positive impact with the backing of legal recognition and funding opportunities. Whether you’re just starting or scaling a cause-driven initiative, this structure gives your mission the legal strength and credibility it needs to thrive.