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Section 8 Company Registration

What is a Section 8 Company?

A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act, 2013 (formerly Section 25 of the Companies Act, 1956). It is formed with the objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or any other socially useful purpose.

Unlike trusts and societies, a Section 8 Company operates under the regulatory framework of the Ministry of Corporate Affairs (MCA), which gives it higher accountability, structured governance, and stronger credibility among donors, CSR partners, and government agencies. All profits and income must be applied towards promoting its objects – no dividends can be distributed to members.

Key Highlights

Non-profit entity with a separate legal identity, distinct from its members and directors
No minimum capital requirement – can be incorporated with any amount of authorised capital
Zero stamp duty on MOA and AOA under MCA provisions
Name can end with “Foundation,” “Association,” “Forum,” “Council,” or similar – no need for “Private Limited” or “Limited” suffix
Governed by the Companies Act, 2013 – same compliance framework as private limited companies
Higher credibility for receiving CSR funds, FCRA donations, and government grants
Eligible for 12A and 80G tax exemptions under the Income Tax Act
Perpetual succession – continues to exist regardless of changes in membership

Documents Required

For Directors / Subscribers
  • PAN Card of all directors and subscribers (mandatory)
  • Aadhaar Card of all directors and subscribers
  • Passport (mandatory for foreign nationals / NRIs)
  • Address proof: Voter ID, Passport, or Driving Licence
  • Recent bank statement or utility bill (not older than 2 months) as residence proof
  • Passport-size colour photograph of each director
  • Digital Signature Certificate (DSC) for all directors
For Registered Office
  • Rent agreement or lease deed (if rented property)
  • No Objection Certificate (NOC) from the property owner
  • Utility bill (electricity, water, or gas) of the property – not older than 2 months
  • Ownership proof (sale deed / property tax receipt) if self-owned
Additional Documents
    • Proposed company name (minimum 2 options in order of preference)
    • Detailed objects clause describing the charitable / social purpose
    • Estimated annual income and expenditure for 3 years
    • Declaration by each director in prescribed format

Process

1
Step 1: Apply for Organisation DSC
2
Step 2: Register your entity on the Startup India portal (startupindia.gov.in)
3
Step 3: Fill in details about the entity, founders, and nature of business
4

Step 4: Upload supporting documents and a brief description of innovation

5
Step 5: Submit the application for DPIIT recognition
6
Step 6: Receive the DPIIT Recognition Certificate
7
Step 7: Apply separately for tax exemption under Section 80-IAC (optional)
Timeline

Complete registration within 10-15 working days

Pricing
Starting from Rs. 6,999/- (inclusive of government fees)

Benefits of Section 8 Company Registration

Section 8 Company registration offers distinct advantages over trusts and societies for running charitable and social impact activities:
1. Enhanced Credibility & Trust

Registered under the Companies Act with MCA oversight, Section 8 Companies carry significantly more credibility than trusts or societies. This makes them the preferred choice for CSR partnerships, foreign donations, and institutional funding.

2. Tax Exemptions

Section 8 Companies can apply for 12A registration (income tax exemption on applied income) and 80G registration (tax deduction for donors). These exemptions make the organisation highly attractive for individual and corporate donors.

3. No Minimum Capital

There is no statutory minimum capital requirement. You can start with as little as ₹10,000 or even ₹1,000 as the initial authorised capital, making it accessible for grassroots organisations and social entrepreneurs.

4. Zero Stamp Duty

The Memorandum of Association (MOA) and Articles of Association (AOA) of a Section 8 Company are exempt from stamp duty, reducing incorporation costs.

5. Structured Governance

With mandatory board meetings, audits, and annual filings, a Section 8 Company ensures transparent operations – a key requirement for grant-making bodies and impact investors.

6. FCRA Eligibility

Section 8 Companies can apply for FCRA registration to receive foreign contributions, opening doors to international funding from foundations and development agencies.

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