Section 8 company Registration

What is Section 8 company?

A Section 8 company is a registered organization with charitable objectives such as promoting arts, science, education, sports, protecting the environment, religion, and charity. Despite being a non-profit organization, it can generate profits; however, it is forbidden to distribute them among its members. Instead, all revenue or profit must be used for the charitable purpose it was registered for. The Companies Act of 2013 provides a special status to Section 8 companies due to their charitable objectives. They are eligible for exemptions and relaxations that other types of companies are not entitled to.


Benefits of incorporation of Section 8 company

Tax and compliance exemptions

An organization that registers under Section 8 of the Companies Act obtains a distinctive status that differentiates it from other entities. This status provides the company not only with tax exemptions but also enables donors to claim tax exemptions on their contributions in accordance with Income Tax regulations. Besides the tax benefits, the company is relieved from adhering to certain regulatory provisions.

Separate legal identity

As a registered company, it attains an independent identity distinct from its members. This enables it to own and manage assets and liabilities in its name, regardless of any connection with its members. The company's existence, assets, liabilities, rights, and obligations remain unaffected by changes in membership or directors.

Limited Liability

A Section 8 registered company provides its members with limited liability. The liability of members is restricted to the capital subscribed and outstanding, and losses or obligations do not impact the personal assets of directors or members. This allows promoters to operate non-profit organizations without the burden of personal liability.

No corporate title

Despite enjoying the advantages of a corporate entity, a Section 8 company is not referred to as such. It is not obligated to add the suffix "Private Limited" or "Limited" to its name. This exemption is granted to draw attention to the company's mission rather than its structure, preventing misconceptions that it is a for-profit organization.


Documents required for formation of Charitable Company


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Photograph

Latest Passport size photograph of Shareholders and Directors

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PAN Card

PAN Card of shareholders and Directors.

Foreign nationals must provide a valid passport.

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Identity Proof

Voter ID/ Passport/ Driving License of Shareholders and Directors

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Address Proof

Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors

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Business Address Proof

Electricity Bill/ Telephone Bill of the registered office address in India

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NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office

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Rent Agreement

Rent Agreement of the registered office should be provided, if any

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Statement of Income & Expenditure

Estimated Statement of Income & Expenditure for next three years


Register a company in 3 easy steps

1. Answer Quick Questions
  • Fill in our questionnaires that take less than 10 minutes
  • Provide basic details & documents required for registration
  • Make payment through secured payment gateways
2. Experts are Here to Help
  • Assigned Relationship Manager .
  • Procurement of Digital Signatures (DSC)
  • Application for Name Reservation
  • Documents drafting including MOA and AOA
  • Application to grant license u/s 8
  • Certificate of Incorporation
3. Your Company is Registered
  • All it takes is 12 – 15 working days*
*Subject to Government processing time

Section 8 company registration procedure

Day 1
  • Application for Digital Signature Certificate
Day 2 - 4
  • Checking Name availability
  • Application for Name Reservation under “RUN“
  • Reservation of Name
Day 5 - 8
  • Drafting of MoA, AoA & other required documents
  • Payment of Stamp Duty
  • Notarization of required documents
Day 9 - 13
  • Application to grant a license in form INC-12
  • Government processing time for approval
  • License under section 8 in form INC-16
Day 14 - 16
  • Filing application for company registration
  • Application for DIN Allotment
  • Application for PAN and TAN of company
Day 17 - 19
  • Government processing time
  • Certificate of Incorporation

Section 8 Company Registration

Frequently Asked Questions


To register such company, the promoters have to ensure the following:
  1. The main object of the company must be to operate for a charitable purpose and among those prescribed in law
  2. Minimum 2 members of the company, who shall subscribe to capital on incorporations
  3. Minimum 2 directors in the company, one of which must be Indian citizen and resident
  4. The registered office of the company must be situated in India

There is no minimum amount of capital prescribed for the charitable company. The promoters may introduce the amount sufficient to start and run business.

The name of the company should be formulated as per the naming guidelines. The application for reservation of name is made in web-form called “RUN” with a maximum of 2 unique names. The registrar may ask to re-submit the application with a different name if the names do not fulfill the requirements.

The promoters shall apply in e-form INC-12 for said approval from Central Government. The form is accompanied with MoA – AoA of the company, declarations from promoters, estimated statement of income & expenditure for next three years, etc. If the application is approved, the approval letter is issued in form INC-16.

No. The registration process is completely online, the physical presence of the promoters is not required. All the documents and details can be transmitted through the mail or uploaded on our portal. .

Yes, an NRI or Foreign National can be a Director in a Section 8 Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be an Indian citizen and a resident.

The Section 8 company is popularly known as NGO. However, NGOs can be registered as other business structure like trust, society, etc.

A Section 8 or Charitable Company shall not pay any dividend to its members, but apply the surplus of receipts over payments for the promotion of its objectives.

Once the company is incorporated, it is in existence and active as long as the annual compliances are met with regularly or it is wound-up voluntarily.