Section 8 Company Registration — Non-Profit Organisation (NGO)
Register India's most credible NGO structure. INC-12 license application, SPICe+ incorporation, MOA/AOA with charitable objects, 12A/80G eligibility, FCRA readiness, and CSR funding access. CA/CS-managed, 100% online.
What You Need to Know
A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act 2013 for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment, or any other useful purpose.
It is the most credible and structured form of NGO in India — offering better governance, accountability, and transparency than trusts or societies. It can receive 12A/80G (tax exemption), FCRA (foreign donations), and CSR funds.
TaxClue manages the complete process — INC-12 license application, SPICe+ incorporation, customised MOA/AOA with charitable objects, projected financials, and post-incorporation 12A/80G/FCRA advisory.
What is a Section 8 Company?
A company licensed under Section 8 of the Companies Act 2013 that:
- Promotes charitable or useful objects (not profit to members)
- Applies all profits/income solely for promoting its objects
- Does not pay dividends to members
- Need not use "Limited" or "Private Limited" — can use Foundation, Association, Forum, Council, etc.
- Can be incorporated as private or public company with Section 8 license
- Requires INC-12 license from Central Government (RoC)
- Subject to Companies Act compliance with certain relaxations
Eligible Objects (Section 8(1)): Commerce, art, science, sports, education, research, social welfare, religion, charity, environment protection, or any other object useful to the community.
Why is Section 8 Registration Important?
Highest NGO Credibility
Companies Act governance = best transparency and accountability.
12A & 80G Eligible
Income tax exemption for NGO + donor tax deductions.
FCRA Eligible
Can receive foreign contributions after 3 years (or prior permission).
CSR Funding
Can receive CSR funds from corporates under Section 135.
Government Grants
Preferred by govt agencies and institutions for grants/funding.
No "Limited" in Name
Use Foundation, Association, Forum, Council — more professional.
Benefits of Section 8 Company
| Benefit | Description |
|---|---|
| Non-Profit Status | Profits applied only for objects, never distributed |
| No "Limited" Suffix | Can use Foundation, Association, Forum, etc. |
| Limited Liability | Members' personal assets protected |
| Tax Exemption (12A/12AB) | Income exempt from tax if registered under 12A |
| Donor Tax Benefits (80G) | Donors get 50%/100% tax deduction on donations |
| FCRA Eligible | Receive foreign contributions (after 3 years or prior permission) |
| CSR Eligible | Receive CSR funds under Section 135 (register on CSR-1 portal) |
| High Credibility | Best NGO structure for institutional and government funding |
| Separate Legal Entity | Own PAN, bank accounts, property |
| NGO DARPAN Eligible | NITI Aayog registration for government grants |
Is This Right For You?
Educational Institutions
Schools, colleges, research bodies, skill development.
Healthcare NGOs
Hospitals, clinics, public health initiatives.
Environmental Groups
Conservation, sustainability, climate action.
Social Welfare Orgs
Women empowerment, child welfare, rural development.
Sports Bodies
Sports promotion, athlete development, tournaments.
Art & Culture
Heritage preservation, performing arts, cultural promotion.
Eligibility Criteria
| Requirement | Details |
|---|---|
| Directors | Min 2 (private) or 3 (public) |
| Members | Min 2 (private) or 7 (public) |
| Objects | Must be charitable, educational, social, or community-useful |
| License | INC-12 license from Central Government (RoC) required |
| Income Application | All profits must be applied for promoting objects |
| Dividend | Prohibited — no distribution to members |
| Projected Financials | 3-year income & expenditure projection required for INC-12 |
Documents You'll Need
PAN Card
Mandatory
Aadhaar Card
Identity & address
Passport Photo
White background
Address Proof
Aadhaar / Voter ID / DL
DSC
Class-3 for directors
Rent Agreement
Or sale deed
NOC
From landlord
Utility Bill
< 2 months old
Prepared by TaxClue
INC-12 license application, projected 3-year financials, MOA with charitable objects, AOA with Section 8 governance, INC-14/INC-15 declarations.
Step-by-Step Process
Reserve Company Name
SPICe+ Part A. Name can omit "Limited" — use Foundation, Association, Forum, etc.
Draft MOA & AOA
MOA with non-profit charitable objects. AOA with Section 8 governance and dividend prohibition clauses.
Prepare Projected Financials
3-year projected income and expenditure statement as required for INC-12 application.
Apply for INC-12 License
Application to RoC with projected financials, MOA/AOA drafts, and promoter declarations (INC-14/INC-15).
RoC Review & License Grant
RoC examines application, may issue directions. License typically granted in 15–30 days.
File SPICe+ Part B
Incorporation form with Section 8 license reference, PAN/TAN application.
Certificate of Incorporation
MCA issues CoI with CIN, PAN, TAN.
Post-Incorporation ✅
Apply for 12A/12AB, 80G, NGO DARPAN, CSR-1. Bank account, auditor, compliance calendar.
INC-12 License Takes Longer
Unlike Pvt Ltd/LLP, Section 8 requires INC-12 license approval before SPICe+ filing. This adds 15–30 days to the process. TaxClue manages the entire timeline.
Turnaround Time
| Step | Timeline |
|---|---|
| Name reservation | 2–4 days |
| MOA/AOA + financial projections | 3–5 days |
| INC-12 license application & approval | 15–30 days |
| SPICe+ filing & CoI | 5–10 days |
| Total | 25–45 working days |
| 12A/80G/DARPAN (post-incorp) | 30–90 days |
Government Fees & Charges
| Component | Amount |
|---|---|
| DSC (per director) | ₹1,500–₹2,500 |
| Name reservation | ₹1,000 |
| INC-12 license | No separate government fee |
| SPICe+ (MCA fees) | Based on authorised capital |
| Stamp duty | Varies by state |
| PAN + TAN | ₹196 |
Post-Registration Compliance
| Compliance | Deadline | Details |
|---|---|---|
| 12A / 12AB Registration | Within 6 months of incorporation | Income tax exemption for NGO |
| 80G Registration | Apply after 12A | Donor tax deduction benefit |
| NGO DARPAN (NITI Aayog) | Post-incorporation | Government grant eligibility |
| FCRA Registration | After 3 years of operations (or prior permission) | Foreign donation eligibility |
| CSR-1 Registration | Post-incorporation | Corporate CSR fund eligibility |
| Annual Return (MGT-7) | Standard Companies Act | Filed with RoC |
| Financial Statements (AOC-4) | Standard | Audited financials |
| Income Tax Return | By due date | ITR-7 |
| Statutory Audit | Mandatory | Annual audit required |
| Board Meetings & AGM | Per Companies Act | Regular governance meetings |
Penalties for Non-Compliance
| Default | Penalty |
|---|---|
| Violation of Section 8 conditions | License revocation; RoC may wind up the company |
| Distribution of profits to members | License revocation + penalties |
| Misapplication of funds | Imprisonment up to 3 years and/or fine ₹25K–₹25L (Section 8(11)) |
| Late annual filings | ₹100/day (no cap) |
| Non-filing of ITR-7 | Loss of 12A/80G benefits |
| FCRA violation | Suspension/cancellation of FCRA registration |
Why Choose TaxClue?
Section 8 Specialists
INC-12 license expertise with high approval rate.
Compliant MOA/AOA
Non-profit objects, dividend prohibition, governance clauses.
12A/80G/FCRA Advisory
Complete post-incorporation tax exemption setup.
Financial Projections
Professional 3-year projections for INC-12 application.
CSR & DARPAN Support
CSR-1 and NGO DARPAN registration assistance.
100% Online
Complete process handled digitally.
TaxClue's Process
Consultation
Understand NGO purpose, confirm Section 8 is the right structure.
Documents + DSC
Collect director/member documents. Arrange Class-3 DSCs.
Name + MOA/AOA + Financials
Reserve name. Draft charitable objects. Prepare 3-year projections.
INC-12 License
Submit license application to RoC with all supporting documents.
SPICe+ + CoI
File incorporation form after license approval. Receive CoI.
Post-Incorp: 12A/80G/DARPAN ✅
Apply for all tax exemptions, NGO DARPAN, CSR-1, bank account, compliance calendar.
What Our Clients Say
Section 8 Across Sectors
Comparison with Alternatives
| Parameter | Section 8 ✅ | Trust | Society |
|---|---|---|---|
| Governing Law | Companies Act 2013 | Trusts Act 1882 | Societies Act 1860 |
| Members | 2+ (pvt) / 7+ (public) | Settlor + trustees | 7+ |
| Liability | Limited | Unlimited (trustees) | Unlimited |
| Credibility | Highest | Moderate | Moderate |
| 12A / 80G | ✓ Yes | ✓ Yes | ✓ Yes |
| FCRA | ✓ Yes | ✓ Yes | ✓ Yes |
| CSR Funds | ✓ Yes | ✓ Yes | ✓ Yes |
| Compliance | Higher (Companies Act) | Lower | Moderate |
| Best For | Institutional NGOs, large ops | Family trusts, small charities | Community organisations |
Frequently Asked Questions
Amendments (2024–2026)
- 202012AB — new provisional registration process under Income Tax Act
- 2020FCRA Amendment Act 2020 — tighter compliance for foreign contributions
- 2021CSR-1 registration mandatory for entities receiving CSR funds
- 2024–25Budget: No changes to Section 8 framework. 12A/80G regime continues.
- 2025MCA notification: Section 8 companies included in Rule 9B demat (deadline 30 June 2025)
- Mar 2026Section 8 framework under Companies Act 2013 continues without major changes
Real Clients. Real Results.
Education NGO — Rajasthan
Section 8 incorporated in 35 days. 12A, 80G, and NGO DARPAN obtained within 3 months. Now receives CSR funding from 4 corporates.
Healthcare Foundation — Delhi
Healthcare initiative needed FCRA for international donors. TaxClue incorporated Section 8, obtained 12A/80G, and prepared FCRA application.
Environmental Trust → Section 8 — Mumbai
Existing trust wanted to convert to Section 8 for better credibility with corporates. TaxClue handled the transition and new CSR-1 registration.
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Complete Section 8 Company Registration —
India's Most Credible NGO Structure.
INC-12 license, MOA/AOA, SPICe+, 12A/80G advisory, NGO DARPAN, CSR-1, FCRA guidance — all handled.