Section 8 Company

What is a Section 8 Company?

A Section 8 Company is a corporate non-profit organization registered under Section 8 of the Companies Act 2013. It is established to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection, where profits are applied solely toward promoting its objectives.

Eligibility for Section 8 NGO Registration

Any two or more individuals or corporate bodies with clear non-profit charitable objectives can incorporate a Section 8 entity in India. Key criteria include:

• Minimum 2 Directors (for private non-profit setup).
• Minimum 2 Shareholders (can be the same as directors).
• No minimum paid-up capital requirement.
• Objects must be strictly charitable with zero dividend distribution to members.

Required Documents for Registration

• PAN Card & Aadhaar Card of all proposed Directors & Shareholders.
• Latest Bank Statement / Electricity Bill / Telephone Bill of Directors (not older than 2 months).
• Passport-sized photographs of Directors.
• Proof of Registered Office Address (Electricity bill / Property tax receipt).
• NOC from the property owner along with Rent Agreement.

Step-by-Step Registration Process

1. Name Reservation: Filing RUN (Reserve Unique Name) via SPICe+ Part A on the MCA portal.
2. Central License Application: Securing the formal Section 8 license in Form INC-12 from the Registrar of Companies.
3. SPICe+ Part B Filing: Integrated submission for Incorporation, DIN allotment, PAN, TAN, EPFO, and ESIC registrations.
4. Certificate Issuance: Issuance of Certificate of Incorporation (COI) containing the Corporate Identification Number (CIN).

Crucial Post-Incorporation Registrations

Registering the company is only the first step. To operate as an effective non-profit and receive tax exemptions, an entity must secure:

• 12A & 80G Tax Exemption Certificates: Exempts operational surplus from tax and grants 50% deduction to donors.
• NGO Darpan Registration: Mandatory NITI Aayog registration for government ministry grants.
• CSR-1 Registration: Required with the MCA to receive Corporate Social Responsibility donations.
• E-Anudan Portal: For grants under the Ministry of Social Justice.

Common Mistakes to Avoid

• Using commercial or ambiguous words in the company name without charitable suffixes (e.g., Foundation, Association, Sanstha).
• Failing to apply for 12A and 80G immediately after incorporation.
• Missing the mandatory 180-day INC-20A Commencement of Business filing.

Frequently Asked Questions