Starting a Section 8 company in India is an exciting way to turn your charitable or social mission into a legally recognized entity. Whether you aim to promote education, healthcare, environmental protection, or social welfare, a Section 8 company provides credibility, limited liability, and a structured framework to pursue your objectives. At Vidhisastras, we guide both domestic and international clients through the entire process of Section 8 company registration in India, helping you focus on your mission while we handle the legal complexities.
What is a Section 8 Company and Who Can Register One?
A Section 8 company is a non-profit entity registered under the Companies Act, 2013, specifically for promoting charitable purposes. Unlike for-profit companies, any surplus generated by a Section 8 company must be reinvested into the organization’s objectives.
Eligibility:
- Minimum two members are required.
- Minimum two directors, with at least one resident in India.
- Foreign nationals can also be members or directors, provided statutory conditions are met.
- The company name should reflect its charitable purpose and may include terms like “Foundation,” “Association,” or “Society.”
This setup is ideal for NGOs, foundations, and social enterprises, giving your initiative legal recognition and credibility in the eyes of donors and stakeholders.
Why Choose a Section 8 Company?
1. Tax Benefits
- Eligibility for exemptions under sections 12A and 80G of the Income Tax Act.
- Donations made to your company are tax-deductible for donors, encouraging greater funding support.
2. Credibility and Recognition
Government approval adds trust and allows your organization to access grants, foreign contributions, and CSR funds.
3. Operational Advantages
- No minimum capital requirement.
- Exemption from stamp duty on registration documents.
- Perpetual succession ensures the company continues even if members change.
These benefits make a Section 8 company a smart choice for social entrepreneurs who want to make a meaningful impact while complying with legal requirements.
Step-by-Step Guide to Section 8 Company Registration
Registering a Section 8 company may seem complex, but breaking it down into steps makes it manageable:
- Digital Signature Certificate (DSC) – Required for all directors to sign forms electronically.
- Director Identification Number (DIN) – Mandatory for all directors before incorporation.
- Name Reservation – Submit Form RUN to reserve a unique name.
- Draft MOA & AOA – Outline your objectives, rules, and governance structure.
- Apply for Section 8 License – Submit Form INC-12 with MOA, AOA, and other documents to the Regional Director.
- File Incorporation with ROC – Complete Form SPICe+ after license approval.
- Post-Incorporation Formalities – PAN and TAN registration, GST (if applicable), EPF/ESIC registrations.
Following these steps ensures smooth Section 8 company formation in India without legal delays.
Documents You’ll Need
Before initiating your company registration process, it’s essential to gather all necessary documents in advance. Proper documentation ensures a hassle-free process and helps avoid compliance issues later. Below are the key documents you’ll need to get started:
- For Directors: PAN, Aadhaar/Passport, and photographs.
- Registered Office Proof: Utility bill, rental agreement, and NOC from the property owner.
- MOA & AOA Drafts: Clearly stating the company’s objectives.
- Other Documents: Projected income and expenditure for three years, board resolutions, and DSCs.
Having accurate documents ready can speed up the registration process and prevent unnecessary delays.
Cost and Timeline
Understanding the overall cost and timeline helps you plan your company registration more effectively. The process involves both government fees and professional charges, which may vary based on your chosen business structure and service provider. Here’s a general overview to guide your planning:
- Estimated Cost: ₹15,000–₹30,000, depending on professional fees and government charges.
- Timeline: Typically, 20–30 working days from submission to incorporation.
- Pro Tip: Early preparation and careful documentation reduce procedural delays significantly.
Governance and Compliance After Registration
Once your Section 8 company is registered, ongoing compliance is essential:
Annual Filings:
- Form AOC-4 (Financial Statements)
- Form MGT-7 (Annual Return)
Tax Compliance:
- Income Tax Returns under Section 139
- GST returns, if applicable
Other Requirements:
- Maintain statutory registers
- Conduct Annual General Meetings
- Comply with FCRA if receiving foreign contributions
Proper governance ensures your company stays legally compliant and builds trust with donors and stakeholders.
How Vidhisastras Can Help You?
At Vidhisastras, we guide you through every stage of Section 8 company registration in India:
- Drafting your MOA & AOA tailored to your objectives.
- Filing applications with the Regional Director and ROC.
- Managing post-registration compliance, tax filings, and statutory obligations.
- Offering support for both domestic and international clients
Whether you want to register a Section 8 company, set up a company in India, or explore other corporate structures, Vidhisastras ensures a smooth and compliant process.
For organizations planning multiple corporate ventures, Vidhisastras also provides guidance on Company Setup in India. Whether you are looking to register a private limited company, establish an LLP, or start a one person company, our services ensure a smooth, compliant, and strategically structured incorporation process. By working with Vidhisastras, you can confidently navigate the complexities of company formation while focusing on your core mission.