Quick Summary
To register a Section 8 Company in India, specific criteria must be followed under the Companies Act, 2013. Anyone, including individuals or members of a Hindu Undivided Family (HUF), can start a Section 8 company in India, as long as there are at least two people ready to be directors or shareholders who meet all the essential requirements. At least one director needs to be a resident of India.
The company’s main aim should focus on social welfare causes. The founders, members, and directors aren’t allowed to take any salary or perks, and the company can’t share profits among them in any form, directly or indirectly. (shall ,must ,cant words not to use)
Overview
The concept of Section 8 companies was introduced in the Companies Act 1913, which permitted companies with charitable objects. An NGO established as a Section 8 company under the Companies Act, 2013 (‘Act’) is governed by the Ministry of Corporate Affairs (‘MCA’), whereas the NGO registered as a trust or society is governed by the Registrar of the State under the State Government. However, the main purpose of establishing a company as a Section 8 company is to promote non-profit objectives.
A Section 8 structure is ideal for NGOs, charitable trusts, or non-profits aiming to promote education, social welfare, environmental protection, or other community-focused objectives.
Purpose of a Section 8 Company (NGO) – Meaning and Objectives
An NGO established as a section 8 company under the Companies Act, 2013, is governed by the Ministry of Corporate Affairs (MCA), while an NGO registered as a trust or society is not. However, the main purpose of establishing a Section 8 company is to promote non-profit objectives.
A Section 8 company structure is ideal for NGOs, charitable trusts, or non-profits aiming to promote education, social welfare, environmental protection, or other community-focused objectives. When the Central Government is satisfied that any individual or group intends to form a company for these non-profit purposes, it issues a license to operate as a section 8 company.
Unlike regular companies, the profits or income earned by a section 8 company are reinvested to achieve its objectives rather than distributed as dividends to its members or shareholders. This reinvestment model distinguishes Section 8 company operations from for-profit entities.
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List of Section 8 Companies Making an Impact in India
When exploring the list of Section 8 company options, you'll find that India hosts some of the most impactful social enterprises working across diverse sectors. Here's a comprehensive list of Section 8 company organisations demonstrating excellence in their respective domains:
| Name of Section 8 Company | Area of Work |
| Reliance Foundation | Healthcare, education, rural transformation |
| Infosys Foundation | Education, women's empowerment, culture |
| Tata Trusts Foundation Entities | Community development and healthcare |
| Wipro Foundation | Education and social initiatives |
| Azim Premji Foundation | School education and teacher training |
| Bharti Foundation | Rural education and skill development |
| Goonj | Rural development and disaster relief |
| Teach For India | Education and youth leadership |
| Akshaya Patra Foundation | Mid-day meal and child welfare |
| Smile Foundation | Education, healthcare, livelihood |
This list of Section 8 companies shows that successful nonprofit structures follow consistent patterns: mission clarity, stakeholder trust, reinvestment discipline, and governance integrity. Whether your organisation emerges as the next entry in India's growing list of Section 8 companies depends on clarity around your objectives and commitment to the requirements of Section 8 company compliance
Who Can Apply for Registration of a Section 8 Company?
Any individual or group of individuals in India can apply to register a Section 8 Company under the Companies Act, 2013, provided they meet certain conditions. This type of company is meant for those aiming to promote social, charitable, educational, or environmental causes without any personal profit.
Eligibility Criteria to Apply Section 8 Company
To qualify for registration and understand the requirements of a Section 8 company, the applicants must prove to the Central Government that:
- Individuals (Indian or foreign nationals) with the intention to work for charitable or social goals
- Registered partnerships, societies, or trusts looking to convert into a section 8 company for better legal standing
- Corporations or institutions seeking to undertake CSR (Corporate Social Responsibility) activities under a formal company structure
All applicants must align with the core mission of operating a list of Section 8 company members, ensuring that no personal profit is extracted. Meeting these requirements for a section 8 company is crucial for approval, as demonstrated by organisations already recognised in the section 8 company landscape.
Section 8 Company can generate revenue with a profit reinvestment clause
A section 8 company operates to generate revenue through activities aligned with its charitable mission. However, all income earned through business activities by a list of section 8 company operations needs to be reinvested entirely into the organisation's social objectives. This distinguishes the Section 8 company model from for-profit ventures.
Whether your structure is public or private, income generation and reinvestment rules remain consistent with the requirements of a Section 8 company. Organisations on the Section 8 list, from Teach For India to Goonj, demonstrate this principle through diverse revenue streams, including program fees, product sales, and service delivery.
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Salary of the Director of a Section 8 Company
One of the most debated topics is whether a director of a Section 8 company draws a salary. The answer depends on the director's status. If a director is also a section 8 company member or promoter, they cannot draw a salary or any form of remuneration.
However, if an individual serves only as a director (not as a member), they may receive reasonable compensation for their professional services, subject to Central Government approval. This distinction is critical for Section 8 company compliance requirements. Each organisation on the Section 8 companies list maintains a transparent salary structure aligned with its mission.
Public or Private: Understanding Section 8 Company Structure
Most Section 8 company registrations operate as public or private limited entities. A public or private designation affects member restrictions and transparency requirements. A private Section 8 company typically has membership restrictions, while a public or private structure maintains similar reinvestment and non-distribution policies.
Clarifying whether your Section 8 company operates as a public or private entity early in the registration process ensures alignment with your organisational vision. Many organisations in the list of section 8 companies choose private structures for focused mission delivery while maintaining accountability to their stakeholders.
Process of Incorporation of a Section 8 Company
Registering a Section 8 Company in India is a straightforward process if you follow the steps carefully.
Step 1: Prepare Your Application (Form INC-12)
Submit Form INC-12 to the Registrar of Companies (RoC). This form is the official request for incorporation under Section 8 of the Companies Act, 2013.
Step 2: Draft MOA & AOA (Form INC-13)
Create a Memorandum of Association (MOA) and Articles of Association (AOA) in the prescribed format. You have to attach the scanned copy of the necessary documents and submit it online on the MCA Portal . Ensure your objectives clearly reflect the non-profit purpose.
Step 3: Legal Declaration (Form INC-14)
Attach a declaration from a practicing Advocate, Chartered Accountant, Cost Accountant, or Company Secretary. This certifies that your MOA and AOA comply with all Section 8 provisions. Must be on stamp paper and duly notarized.
Step 4: Prepare Your 3-Year Financial Estimate
Submit an income and expenditure plan for the next three years. Specify funding sources and planned spending aligned with your objectives. and the requirements of the Section 8 company.
Step 5: Applicant Declaration (Form INC-15)
All subscribers and first directors must submit Form INC-9. Complete the appropriate state stamp paper and have it notarised. This step clarifies governance roles, including whether a director of a Section 8 company can draw a salary, which applies to individual applicants.
Step 6: Director & Subscriber Declarations (Form INC-9)
All subscribers and first directors must submit Form INC-9. Complete the appropriate state stamp paper and have it notarised. This step clarifies governance roles, including whether a director of a Section 8 company can draw a salary, which applies to individual applicants.
Forms Required for Section 8 Company Registration
To register a Section 8 Company under the Companies Act, 2013, certain key government forms must be filed at various stages to ensure proper compliance and transparency. Important forms include:
- Form INC-12, which is the application for the Section 8 license.
- Form INC-13, containing the draft Memorandum of Association (MOA) and Articles of Association (AOA).
- Form INC-14, a declaration by professionals and members confirming that the MOA and AOA comply with Section 8 requirements.
- Form INC-15, a notarized statement by company members about their intent.
- After licensing approval, the SPICe+ form is filed for company incorporation.
These forms, collectively, ensure that the Section 8 company operates exclusively for charitable, social, or nonprofit objectives and is subject to full regulatory oversight.
| Form No. | Purpose |
| INC-12 | Application to the Registrar of Companies (RoC) for obtaining a Section 8 license. Must include MOA, AOA drafts, declarations, and projected income & expenditure for 3 years. |
| INC-13 | Draft Memorandum of Association (MOA) outlining the company’s non-profit objectives. Signed by all subscribers and witnessed. |
| INC-14 | Declaration from a practising CA, CS, CMA, or Advocate confirming compliance with Section 8 provisions. |
| INC-15 | A declaration by each applicant stating that all incorporation rules under Section 8 are complied with. |
| INC-16 | License issued by the Central Government permitting the company to operate as a Section 8 company. |
| SPICe+ (INC-32) | Application for the incorporation of the company once the license is granted. Enables name reservation and registration in one step. |
| INC-22 | Filed within 30 days of incorporation to intimate the official registered office address. |
| DIR-2 | Written consent from each person proposed to act as a director. |
| DIR-3 | Application for obtaining a Director Identification Number (DIN) for all proposed directors. |
| DIR-12 | Notice of appointment of directors, filed within 30 days of incorporation. |
Frequently Asked Questions
Yes, a Section 8 company can engage in business activities and generate revenue to support its mission. However, all profits must be reinvested entirely to achieve the company's charitable objectives, distinguishing it from for-profit ventures. The list of Section 8 companies, such as Pratham Education and Azim Premji Foundation, exemplifies this model successfully.
Individuals, Hindu Undivided Families (HUFs), firms, and companies committed to nonprofit goals can form a Section 8 company. The company must have at least two members and two directors, with at least one director being a resident of India.
Yes, foreign nationals can be directors, but at least one director must be a resident of India as per MCA guidelines.
No, there is no minimum capital requirement to register a Section 8 company.
Typically, it takes 2 to 4 weeks, depending on document readiness and government processing times. The requirements of the Section 8 company approval timeline vary by RoC office.
Yes, they can apply for various tax exemptions under the Income Tax Act, follow compliance and approval by the tax authorities.