A Section 8 Company can be registered by choosing a suitable name, obtaining DSC and DIN, preparing the required documents, filing the SPICe+ incorporation forms with the ROC, and obtaining the Certificate of Incorporation. After registration, the company must complete applicable post-registration and compliance requirements.
What Is a Section 8 Company?
A Section 8 Company is a non-profit registered under the Companies Act, 2013. It can earn income and accept donations, but that money must go back into its charity work—never out as profit to members. Over 38,000 such companies are already active in India, making it one of the most credible ways to run an NGO.
Compared to a Trust or Society, a Section 8 Company is registered with the Ministry of Corporate Affairs (MCA), so it has directors, members, a Memorandum of Association (MOA), Articles of Association (AOA), and yearly ROC filings. This extra structure is exactly what makes CSR teams and larger donors trust it more than a private deed.
Real-Life Example
The Akshaya Patra Foundation is a well-known Section 8 Company. Founded in 2000 and headquartered in Bengaluru, it runs one of the world's largest school mid-day meal programs, feeding over two million children daily in partnership with government schools. It operates under strict MCA compliance while benefiting from tax exemptions like 12A and 80G, showing exactly how the structure works in practice for a large-scale, donor-funded NGO.
What Are the Key Benefits of a Section 8 Company?
It gives your NGO tax breaks, legal safety, and stronger trust with donors.
- Eligible to apply for tax exemptions like 12A and80G
- 80G
- No stamp duty on incorporation papers in some states
- Limited liability: Directors aren't personally responsible for company debts
- No minimum capital needed to start
- Higher credibility with companies, donors, and the government
- Perpetual succession: The company survives even if members change
What Activities Can a Section 8 Company Do?
It qualifies almost any social good work as long as profits aren't shared. You can go for the following:
- Education and skill development
- Healthcare and medical relief
- Social welfare and charity
- Religion, art, and culture
- Science, research, and sports
- Environment protection
- Women's and child welfare, rural development
What Laws Govern Section 8 Company Registration?
One main law and a few rules control the whole process, as specified below:
- Companies Act, 2013, Section 8: the core law allowing charitable companies
- Companies (Incorporation) Rules, 2014, Rules 19 & 20: what the Registrar checks before approval
- SPICe+: the single online MCA form for name approval, incorporation, PAN, and TAN
- CSR-1: must be filed online only via the MCA portal, needed to receive CSR funds (since July 2025)
- 12A and 80G: separate Income Tax Act approvals, applied for after incorporation
Who Is Eligible to Register a Section 8 Company?
You need at least two people and a genuinely charitable purpose to register a Section 8 Company.
- Purpose must be charitable or for social welfare, with no profit paid to members.
- At least 2 directors and 2 members for a private company
- At least 3 directors and 7 members for a public company
- Directors should usually be Indian residents (foreign nationals allowed with extra compliance)
- A license from the Registrar of Companies (RoC) confirming charitable status.
What Documents Are Needed for a Section 8 Company Registration?
Here is a checklist of Identity proofs for people, and ownership or rent papers for the office.
- PAN, Aadhaar, and photograph of all directors and members
- Address proof and Digital Signature Certificate (DSC) for each director
- Consent to act as director, plus MCA declarations
- Utility bill and rent agreement (if rented) for the registered office
- NOC from the property owner
- Proposed company name and main objects (activities)
A common delay happens when the name on someone's Aadhaar doesn't exactly match their PAN; check this before filing to avoid resubmissions.
What Is the Registration Fee and Timeline for a Section 8 Company?
You expect to spend ₹8,000–₹15,599 and wait 10–20 working days.
| Particulars | Indicative Cost | Timeline |
| DSCs for 2 directors | ₹3,000 | 1–2 days |
| Name reservation & MCA filing | ₹1,000 | 1–3 days |
| Drafting MOA, AOA & incorporation docs | ₹2,999 | 2–4 days |
| Government fee & state stamp duty | ₹1,000–₹2,000 | Varies by state |
| PAN, TAN & Certificate of Incorporation | Included | With RoC approval |
| Total estimated cost | ₹8,000–₹15,599 | 10–20 working days |
Costs include 18% GST on the professional fee; government charges vary by state.
What Compliance Is Needed After Registration for a Section 8 Company?
Incorporation is the start; regular filings keep your NGO legal and fundable.
- Open a bank account for donations and grants
- Set up proper accounting from day one
- Apply for 12A (tax exemption) and 80G (donor deduction)
- Register on NGO Darpan for government scheme recognition
- Complete CSR-1 registration to receive CSR funds
- File annual ROC returns and income tax returns
- Get yearly audits done for donor transparency
What Mistakes Should You Avoid for a Section 8 Company Registration?
Most delays come from small, avoidable errors, so here are some suggestions that you need to avoid:
- Picking a name that doesn't match your stated objects
- Copying generic NGO objects instead of writing your own
- Skipping early planning for 12A, 80G, and CSR-1
- Forgetting the NOC from the property owner
- Entering incorrect director or member details
- Ignoring compliance after getting the certificate
- Assuming the certificate alone brings in donations or CSR funds
Frequently Asked Questions
What is Section 8 Company Registration?
It's the process of forming a company under Section 8 of the Companies Act, 2013, for charitable or social welfare purposes.
Is a Section 8 Company good for NGO registration?
Yes, it offers strong credibility and is well-suited for 12A, 80G, CSR-1, and institutional funding.
How many people are needed to start one?
At least 2 directors and 2 members for a private company, or 3 directors and 7 members for a public one.
Can a Section 8 Company earn income?
Yes, but the income must go back into its charitable objects and never be paid out as dividends.
Can it receive CSR funding?
Yes, once it completes CSR-1 registration and meets eligibility conditions.
Is a Section 8 Company better than a Trust?
It depends on your goals. A Section 8 Company suits CSR-facing, institutionally funded NGOs; a Trust suits simpler charitable work.
Author
Aabha Garg
A Content Strategist at NGOExperts, who focuses on NGO registration, 12A and 80G registration, FCRA compliance, income tax filing for non-profits, and CSR funding guidelines in India. I research and write our compliance guides in collaboration with our in-house Chartered Accountants and Company Secretaries, so every article reflects current tax and regulatory requirements for the NGO and non-profit sector.
Written by Aabha Garg. Last updated on September 23, 2026
