Section-8 Company (NGO)

A Section 8 Company is the most credible form of Non-Governmental Organization (NGO) in India, incorporated under the Companies Act 2013 for charitable, social, educational, religious, or environmental purposes. It enjoys tax exemptions under 80G and 12A and is eligible to receive CSR contributions from corporates.

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The Most Credible NGO Structure in India

Unlike a trust or society, a Section 8 Company is governed under the central Companies Act 2013 — giving it a uniform regulatory framework, greater transparency, and higher donor confidence. Any profits earned by a Section 8 Company must be applied solely toward the promotion of its objectives. Dividends cannot be declared or paid to members. This non-profit character makes it eligible for income tax exemptions under Sections 12A and 80G of the Income Tax Act.

Critical: A Section 8 company gets no automatic income-tax exemption — you must separately obtain Section 12A registration (and 80G for donor deductions) via Form 10A. Breaching licence conditions, such as distributing profits to members, can lead to licence revocation and fines of ₹10 lakh to ₹1 crore.

Non-Profit Structure

Profits fuel the mission, not dividends

All surplus generated by a Section 8 Company must be reinvested into charitable or social objectives. No portion can be distributed to members or directors as dividend or bonus.

80G & 12A Eligibility

Tax benefits for donors and the NGO

A Section 8 Company can apply for 80G and 12A registration with the Income Tax Department, enabling donors to claim tax deductions and the NGO to be exempt from income tax on its receipts.

CSR Funding Access

Receive corporate social responsibility funds

Corporates spending their CSR budget prefer Section 8 Companies over trusts and societies because of the MCA oversight, transparent governance, and digital audit trail they provide.

Central Government Registration

Single registration, all-India coverage

Being incorporated under the central Companies Act 2013, a Section 8 Company has validity across all states — unlike a society or trust which is registered state-by-state.

Eligibility Criteria

Who Can Incorporate a Section 8 Company?

Section 8 Companies are formed for non-commercial purposes and have specific conditions around membership and governance.

Minimum 2 Members

At least 2 members are required. For a Section 8 Company registered as a public company, a minimum of 7 members is required. There is no maximum limit.

Non-Commercial Objects

The company must be formed exclusively for charitable, educational, religious, scientific, sports, or social objectives. Commercial profit-making activities are not permitted.

No Dividend Distribution

All income must be applied toward the stated objects. Distribution of profits or assets to members — even on winding up — is prohibited except under specific conditions.

Central Government Licence

Incorporation requires prior approval (licence) from the Central Government through the MCA. The Registrar of Companies issues the licence after reviewing the proposed objectives.

Key Benefits

Why Register as a Section 8 Company?

Section 8 Companies offer the most robust legal framework for non-profit work in India, with benefits that outperform trusts and societies.

National Legal Recognition

Registered under the central Companies Act, a Section 8 Company is recognized across all 28 states without needing separate state-level registration — unlike societies or trusts.

Tax Exemptions

With 12A registration, all income is exempt from tax. With 80G, donors can claim 50–100% deduction on their contributions, significantly improving fundraising appeal.

Foreign Funding (FCRA)

Section 8 Companies can apply for FCRA registration to receive foreign donations from international donors, foundations, and multilateral agencies.

Higher Donor Confidence

MCA oversight, audited accounts, and transparent governance make Section 8 Companies the most credible recipient entity for CSR funds and institutional grants.

Limited Liability

Members enjoy limited liability — their personal assets are not at risk even if the company faces financial obligations. This is not the case with societies or trusts.

Perpetual Succession

The company continues beyond the tenure of its founding members or directors — ensuring long-term mission continuity and organizational stability.

Step-by-Step Process

How to Register a Section 8 Company

Since February 2020, the Section 8 licence is granted through the SPICe+ incorporation form itself — no separate INC-12 application is needed for a new company. Licence and incorporation happen in one integrated filing.

Your journey Step 1 of 6

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Step 1 of 6

Obtain DSC & DIN

All proposed directors obtain Class 3 Digital Signature Certificates. DINs are applied for within the incorporation form.

Step 2 of 6

Reserve Company Name

Reserve the name through SPICe+ Part A. Section 8 companies typically use words like Foundation, Association, Federation, Council, or Institute — and are exempt from adding 'Limited' or 'Private Limited' to the name.

Step 3 of 6

Draft MOA (INC-13) & AOA

Prepare the Memorandum of Association in Form INC-13 stating the charitable objects, and the Articles of Association. All income must be applied to the stated objects — no dividends can ever be paid to members.

Step 4 of 6

Prepare Declarations INC-14 & INC-15

Obtain Form INC-14 — a declaration from a practising CA/CS/CMA that the drafts comply with Section 8 — and Form INC-15, a declaration from each applicant. Attach an estimate of the company's income and expenditure for the next three years.

Step 5 of 6

File SPICe+ Part B — Licence + Incorporation

Submit SPICe+ Part B with INC-13, INC-14, INC-15, the projections, director KYC, and registered office proof. The Section 8 licence number is issued along with the Certificate of Incorporation, PAN, and TAN in this single filing.

Step 6 of 6 Final Step

Certificate of Incorporation

On approval, receive the Certificate of Incorporation. Proceed to apply for 12A and 80G registration with the Income Tax Department immediately.

Document Checklist

Documents Required

In addition to standard director KYC, Section 8 Companies require supporting documents for the Central Government licence application.

Director & Promoter KYC

PAN Card

PAN of all proposed directors.

Aadhaar Card

Aadhaar for address and identity proof.

Address Proof

Recent bank statement or utility bill of directors.

Photograph

Passport-size photograph of each director.

The MCA scrutinizes Section 8 licence applications carefully. Vague or commercially-oriented objects will result in rejection. Ensure your MOA clearly states specific, measurable non-profit objectives.

Post Registration

Key Steps After Section 8 Incorporation

After incorporation, immediately pursue tax exemptions and set up robust financial management to satisfy donors and auditors.

Within 30 days

Apply for 12A & 80G

File combined 12A and 80G registration with the Income Tax Department using Form 10A. These registrations are critical for tax-exempt operations and donor deductions.

After 3 years

Apply for FCRA (if needed)

If you plan to receive foreign contributions, apply for FCRA registration with the Ministry of Home Affairs. FCRA requires at least 3 years of operations and audited accounts.

Yearly

Annual MCA & IT Filings

File MCA Annual Returns (AOC-4, MGT-7) and Income Tax Return (ITR-7) every year. Maintain detailed project accounts and get annual statutory audit done by a CA.

Why Finace India?

Your Trusted Section 8 Company Partner

A Section 8 Company unlocks 80G, 12A and FCRA eligibility — but only if your MOA objects and licence application are drafted precisely. We've filed hundreds correctly.

NGO Law Specialists

Deep experience drafting the non-commercial objects clauses that Central Government licensing requires.

80G & 12A Ready

We structure your incorporation so tax-exemption and CSR-eligibility applications face no avoidable rejections.

FCRA Pathway Guidance

Advisory on positioning your Section 8 Company to become foreign-contribution eligible once operational conditions are met.

Faster Central Licence Approval

Applications prepared to Ministry of Corporate Affairs standards, reducing back-and-forth clarifications.

1,200+

NGOs Incorporated

20

Avg. Days to Incorporation

4.9 ★

Client Rating

97%

First-Attempt Approval

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FAQ

Frequently Asked Questions

A Section 8 Company is governed under the national Companies Act 2013, offering limited liability, corporate credibility, and MCA oversight. A Trust is governed by the Indian Trusts Act 1882 (state-specific). A Society is registered under the Societies Registration Act 1860. Section 8 Companies are generally preferred for receiving CSR funds and foreign donations.

Yes. Directors and employees of a Section 8 Company can receive a reasonable salary for services rendered. However, no profits can be distributed as dividends or bonuses to members in their capacity as shareholders.

Since the licence is granted within the SPICe+ filing itself, incorporation typically completes in 10–20 working days from complete documentation, subject to Central Registration Centre processing and any resubmission queries.

Section 8 Companies can generate revenue through selling publications, training programs, consultancy, etc., as long as all proceeds are applied to charitable objectives. Pure commercial activity for profit distribution is not permitted.

Yes. Section 8 Companies must file MCA Annual Returns (AOC-4 and MGT-7) and an Income Tax Return (ITR-7) every year. Failure to file attracts heavy penalties and can result in licence cancellation.

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Section-8 Company (NGO)

Start Your Section-8 Company Today

The Most Credible NGO Structure in India

Non-Profit Structure

80G & 12A Eligibility

CSR Funding Access

Central Government Registration

Who Can Incorporate a Section 8 Company?

Minimum 2 Members

Non-Commercial Objects

No Dividend Distribution

Central Government Licence

Why Register as a Section 8 Company?

National Legal Recognition

Tax Exemptions

Foreign Funding (FCRA)

Higher Donor Confidence

Limited Liability

Perpetual Succession

How to Register a Section 8 Company

Obtain DSC & DIN

Reserve Company Name

Draft MOA (INC-13) & AOA

Prepare Declarations INC-14 & INC-15

File SPICe+ Part B — Licence + Incorporation

Certificate of Incorporation

Documents Required

Director & Promoter KYC

PAN Card

Aadhaar Card

Address Proof

Photograph

Key Steps After Section 8 Incorporation

Apply for 12A & 80G

Apply for FCRA (if needed)

Annual MCA & IT Filings

Your Trusted Section 8 Company Partner

NGO Law Specialists

80G & 12A Ready

FCRA Pathway Guidance

Faster Central Licence Approval

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