Section 8 Company
Registration for NGOs
& Non-Profits

What is a Section 8 Company?

A Section 8 Company is a non-profit organisation incorporated under Section 8 of the Companies Act, 2013 for the purpose of promoting charitable, educational, scientific, social, or other objectives of public benefit. It is the Indian equivalent of what is globally known as an NPO (Non-Profit Organisation).

Unlike a regular company, a Section 8 Company cannot distribute profits or dividends to its members or directors. Any income earned must be wholly applied toward the promotion of the company's charitable objectives. In return, it receives significant tax benefits, credibility, and regulatory recognition not available to other NGO structures.

It is governed by the Companies Act, 2013, making it the most structured, transparent, and accountable form of non-profit in India — preferred by major donors, CSR departments, and international funding agencies.

Section 8 Company vs Trust vs Society

Section 8 Company Naming Requirements

Unlike regular companies that end with "Private Limited" or "Limited", Section 8 Companies are permitted to use a special name without the word "Limited" — making them sound more like charitable organisations. However, the name must include one of the following approved suffixes or indicators:

Permitted Charitable Objectives

A Section 8 Company must be formed for one or more of the following purposes under Section 8 of the Companies Act, 2013. TaxClue ensures your MOA object clause is precisely worded to satisfy the Regional Director during INC-12 review.

Multiple objectives can be included in the MOA — TaxClue advises on the optimal combination for your work.

Key Registrations After Incorporation

Incorporating a Section 8 Company is just the first step. The real power comes from these post-incorporation registrations that unlock tax benefits, donor deductions, and access to major funding sources. TaxClue guides you through all of them.

Who Should Register a Section 8 Company?

Advantages & Disadvantages of a Section 8 Company

Step-by-Step Registration Process

The Section 8 registration process has a unique extra step — the INC-12 License from the Regional Director — that distinguishes it from all other company types. TaxClue manages every stage end-to-end.

• 1

  DSC & DIN for All Directors

  Class-3 Digital Signature Certificates and Director Identification Numbers for all proposed directors (minimum 2, at least one Indian resident). Required to digitally sign all MCA and INC-12 forms.

  MCA Portal
• 2

  Company Name Reservation (RUN Form)

  TaxClue checks availability on MCA and trademark database, then files the RUN form with 2 preferred name options. The name must include an approved word (Foundation, Association, Forum, Council, etc.) and cannot imply profit-making.

  MCA / RUN Form
• 3

  Drafting MOA & AOA with Charitable Objects

  This is the most technically demanding step. TaxClue's legal team drafts MOA and AOA with a precisely worded object clause that satisfies the Regional Director's INC-12 review. The objects must be specific, genuine, and clearly charitable in nature — vague or commercially-sounding objects are routinely rejected.

  Legal Drafting
• 4

  INC-12 License Application — The Critical Step

  Unique to Section 8 companies. TaxClue files Form INC-12 with the Central Registration Centre (CRC) — the application for a licence to operate as a non-profit under Section 8 of the Companies Act. This includes declarations from all directors (Form INC-13 / INC-15), the draft MOA/AOA, a statement of the company's proposed activities, and estimated income/expenditure for the next 3 years. The Regional Director reviews and approves the licence — typically 7–15 working days.

  INC-12 · Central Registration Centre
• 5

  SPICe+ Part B + e-MOA + e-AOA + AGILE-PRO-S Filing

  Once the INC-12 license is granted, TaxClue immediately files the full incorporation form with MCA. AGILE-PRO-S simultaneously applies for PAN, TAN, ESIC, and EPFO. The company is typically incorporated within 3–5 working days of the SPICe+ filing.

  MCA Portal
• 6

  Certificate of Incorporation Issued ✅

  The Registrar of Companies issues the Certificate of Incorporation with your Company Identification Number (CIN). Your Section 8 Company is now a registered non-profit legal entity. PAN and TAN are automatically allotted.

  Day 15–25
• 7

  Post-Incorporation: INC-20A, Auditor & Bank Account

  TaxClue assists with Form INC-20A (Commencement of Business, within 180 days), appointing the first Statutory Auditor within 30 days, holding the first Board Meeting, and opening a current account in the company's name — required before commencing operations or receiving donations.

  Companies Act 2013
• 8

  12A & 80G Registration with Income Tax Department

  TaxClue prepares and files the application for 12A (income tax exemption) and 80G (donor deduction benefit) on the Income Tax portal. Both applications are filed as a bundle. Processing time is typically 1–3 months from the date of application. TaxClue tracks and follows up until both certificates are received.

  Income Tax Portal

What You Get with TaxClue Registration

Documents Needed for Section 8 Registration

Required for all 2+ directors and the registered office. TaxClue shares a detailed checklist after your free consultation.

For All Directors

For Registered Office

Annual Compliance Requirements

Although non-profit in nature, a Section 8 Company must comply with all company law requirements under the Companies Act, 2013 — plus Income Tax obligations. Non-compliance can result in cancellation of the Section 8 licence.

Why Choose TaxClue for Section 8 Company Registration?

Frequently Asked Questions

• What is the difference between a Section 8 Company, a Trust, and a Society?+
  All three are non-profit structures, but they differ significantly in legal strength and credibility. A Section 8 Company is governed by the Companies Act, 2013 and monitored by MCA — it has limited liability, a separate legal entity, mandatory statutory audit, and is the most credible structure for large donors and CSR funds. A Trust is governed by state-specific trust acts, has no separate legal entity, and offers lower compliance — suitable for small, local charitable work. A Society is governed by the Societies Registration Act (state-specific), has no separate legal entity, and can face member disputes. TaxClue recommends Section 8 for any organisation serious about scale, CSR funding, or FCRA.
• What is the INC-12 License and why is it unique to Section 8 Companies?+
  Form INC-12 is the application for a license to incorporate as a Section 8 (non-profit) company under Section 8 of the Companies Act, 2013. Unlike any other company type, a Section 8 Company requires prior approval from the Regional Director (via the Central Registration Centre) before the Registrar of Companies can incorporate it. This approval ensures the company genuinely intends to operate as a non-profit. The INC-12 filing includes the draft MOA/AOA, director declarations, a statement of proposed charitable activities, and a 3-year estimated income/expenditure plan. TaxClue's expertise in correctly drafting these documents is what ensures first-time approval.
• Can a Section 8 Company pay salaries to its directors or staff?+
  Yes. A Section 8 Company can pay reasonable salaries and remuneration to its directors, employees, and officers for services rendered to the organisation. What it cannot do is distribute profits or dividends to its members, promoters, or directors as a return on their investment — as a Trust or regular company might. Directors can receive compensation, consultancy fees, and reimbursements as long as they are reasonable, documented, and applied toward the organisation's objectives. All such payments must be fully disclosed in the annual financial statements.
• What are 12A and 80G registrations, and when should I apply?+

  Section 12A registration makes your organisation's income exempt from income tax. Without it, the organisation pays income tax at 30% on all surplus. Section 80G allows your donors to claim a 50% tax deduction on their donations — making your organisation attractive for individual and corporate donations.

  Both should be applied for immediately after incorporation — as soon as the COI is received and the first board meeting is held. TaxClue files both applications simultaneously on the Income Tax e-filing portal. Approval typically takes 1–3 months. The registrations are now valid for 5 years and must be renewed thereafter.

• How can a Section 8 Company receive CSR funds from corporates?+
  Under Section 135 of the Companies Act, 2013, Indian companies with net worth of ₹500 crore+, turnover of ₹1,000 crore+, or net profit of ₹5 crore+ must spend 2% of their average net profit on CSR activities. A Section 8 Company registered for at least 3 years is one of the most preferred vehicles for CSR implementation. To receive CSR funds, your organisation must: be registered on the MCA portal for CSR (Form CSR-1), have a clear project aligned with Schedule VII CSR activities, demonstrate past impact, have audited accounts, and hold valid 12A/80G registrations. TaxClue advises on CSR readiness and helps prepare the required documentation.
• Can a Section 8 Company receive foreign donations?+
  Yes, but only after obtaining FCRA (Foreign Contribution Regulation Act) registration from the Ministry of Home Affairs. A Section 8 Company can apply for FCRA registration after it has been registered for at least 3 years, has demonstrated genuine charitable activity, and has spent at least ₹15 lakh on charitable activities in the 3 preceding years. There is also a "Prior Permission" route for first-time foreign donations. TaxClue assists with FCRA registration eligibility assessment, application preparation, and ongoing FCRA annual return (FC-4) filings.
• How long does Section 8 Company registration take?+
  Section 8 registration typically takes 15–25 working days — significantly longer than a regular Pvt. Ltd. (7–10 days) because of the mandatory INC-12 License step. The timeline: DSC/DIN (2–3 days), Name Reservation (3–5 days), MOA/AOA drafting (2–3 days), INC-12 filing and Regional Director approval (7–15 days), SPICe+ incorporation after license (3–5 days). The main variable is the Regional Director's processing time, which can vary. TaxClue actively follows up and responds to any queries from the CRC to minimise delays.
• What are the minimum requirements to register a Section 8 Company?+
  • Minimum 2 Directors (at least 1 must be an Indian resident)
  • Minimum 2 Shareholders/Members (can be the same as directors)
  • A registered office address in India
  • Clear charitable objective in the MOA
  • No minimum paid-up capital requirement
  • DSC and DIN for all proposed directors
  • Valid PAN, Aadhaar, and ID proofs for all directors

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