Section 8 Company Registration
Start your NGO with zero stamp duty and tax exemptions
- Complete Registration in 15-20 Days
- No Stamp Duty on Registration
- 12A & 80G Tax Exemption Support
- Zero Minimum Capital Required
- MOA, AOA & Incorporation Certificate
- Lifetime Compliance Assistance
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8 REASONS TO REGISTER A
SECTION 8 COMPANY
Noble Cause
Promote social welfare, education, charity, or other noble objectives
Tax Exemptions
Eligible for 12A and 80G tax exemptions from Income Tax Department
No Stamp Duty
Exempted from payment of stamp duty on incorporation
Easy Funding
Receive donations, grants, and CSR funding from corporates
Limited Liability
Members have limited liability like a private limited company
High Credibility
More trust and credibility compared to unregistered NGOs
Perpetual Succession
Continues to exist despite changes in membership
Professional Structure
Corporate governance with transparent operations
What is a Section 8 Company?
A Section 8 Company is a special type of company registered under Section 8 of the Companies Act, 2013. It is formed for promoting charitable purposes like education, commerce, art, science, sports, social welfare, research, protection of environment, or any other charitable object.
Unlike regular companies, Section 8 Companies are non-profit organizations. They do not distribute profits to members as dividends but utilize all income and profits for promoting their stated objectives. This structure combines the benefits of corporate governance with the flexibility of charitable organizations.
Section 8 Companies enjoy several benefits including exemption from stamp duty, no minimum capital requirement, eligibility for government grants, CSR funding, and various tax exemptions including 12A and 80G registrations for donors to claim tax benefits.
Key Features of Section 8 Company
Non-Profit Motive
Formed for charitable purposes, cannot distribute profits to members
No Minimum Capital
No requirement of minimum paid-up capital or authorized capital
Stamp Duty Exemption
Completely exempted from payment of stamp duty on incorporation
Tax Benefits
Eligible for 12A and 80G registrations for tax exemptions
Limited Liability
Members enjoy limited liability protection like private limited companies
CSR Funding Eligible
Can receive CSR funds from companies under Companies Act
Government Grants
Eligible to receive grants and donations from government bodies
Corporate Structure
Professional management and transparent governance framework
Foreign Contributions
Can apply for FCRA registration to receive foreign donations
Perpetual Succession
Company continues despite changes in directors or members
Requirements for Registration
Directors & Members
- Minimum 2 Directors required
- Minimum 2 Subscribers (can be same as directors)
- At least one director must be Indian resident
- All directors must have DIN & DSC
- Directors should have clean track record
Objects & Documents
- Charitable objectives in MOA
- Profit prohibition clause mandatory
- Registered office address required
- License from Central Government (ROC)
- No minimum capital requirement
Permitted Charitable Objects
Education
Promotion of education and literacy
Healthcare
Medical relief and healthcare services
Arts & Culture
Promotion of art, science, and culture
Sports
Development and promotion of sports
Environment
Environmental protection and conservation
Social Welfare
Poverty alleviation and social development
Research
Scientific and social research
Heritage
Protection of national heritage and monuments
Human Rights
Protection and advancement of human rights
Documents Required
1Identity Proof
- ✓ PAN Card (All Directors)
- ✓ Aadhaar Card
- ✓ Passport Size Photos
- ✓ Voter ID/Driving License
- ✓ Passport (for Foreign Directors)
2Address Proof
- ✓ Latest Bank Statement
- ✓ Electricity/Utility Bill
- ✓ Rent Agreement
- ✓ Property Ownership Documents
- ✓ NOC from Property Owner
3Organization Documents
- ✓ Detailed Project Report
- ✓ Proposed Activities Document
- ✓ MOA with Charitable Objects
- ✓ Declaration from Directors
- ✓ Consent Letters
Important Note:
All directors must provide a declaration that they will not distribute profits. A detailed project report explaining the charitable activities and how funds will be utilized must be submitted to ROC for obtaining Section 8 license.
Section 8 Company Registration Process
Complete your non-profit registration in systematic steps
DSC
Digital Signature
DIN
Director ID
Name
Reserve Name
Documents
Prepare Papers
Application
Sec 8 License
Approval
ROC License
SPICe+
Incorporation
Certificate
Get COI
Tax Exemptions & Benefits
12A Registration
- Income tax exemption on surplus
- Company's income not taxable
- Valid for perpetuity once granted
- Can accumulate 15% for future use
- Applied after incorporation
- Processed by Income Tax Department
- Mandatory for tax benefits
80G Registration
- Donors can claim tax deductions
- 50% or 100% deduction available
- Attracts more donors and funding
- Increases credibility and trust
- Valid for specific period
- Renewal required periodically
- Applied along with 12A
Additional Exemptions:
Section 8 Companies are exempted from stamp duty on incorporation, can receive CSR funds, eligible for government grants, can apply for FCRA to receive foreign contributions, and enjoy various state-level tax benefits depending on the state of registration.
Frequently Asked Questions
Q1.What is the difference between Section 8 Company and Trust/Society?
Q2.Is there any minimum capital requirement for Section 8 Company?
Q3.Can Section 8 Company generate profit?
Q4.How to get 12A and 80G registration?
Q5.Can Section 8 Company receive foreign donations?
Q6.What are the annual compliance requirements?
Q7.Can directors receive salary in Section 8 Company?
Q8.Can Section 8 Company be converted to other company type?
Advantages & Disadvantages
Advantages
- ✓No stamp duty on incorporation
- ✓No minimum capital requirement
- ✓Limited liability for members
- ✓12A & 80G tax exemptions
- ✓Eligible for CSR funding
- ✓Can receive government grants
- ✓Professional corporate structure
- ✓High credibility and trust
- ✓Perpetual succession
- ✓Easy to dissolve compared to Trust
Disadvantages
- !Cannot distribute profits to members
- !Strict compliance requirements
- !ROC license renewal required
- !Detailed project report needed
- !Activities restricted to MOA objects
- !Government scrutiny on operations
- !12A/80G registration takes time
- !FCRA requires 3 years operation
- !Conversion to profit company difficult
- !Annual activity reports mandatory
Section 8 vs Trust vs Society
| Features | Section 8 Company | Trust | Society |
|---|---|---|---|
| Governing Law | Companies Act | Trust Act | Society Act |
| Minimum Members | 2 | 2 Trustees | 7 |
| Registration With | ROC/MCA | Registrar | Registrar of Society |
| Limited Liability | Yes | No | No |
| Stamp Duty | Exempted | Applicable | Applicable |
| Perpetual Succession | Yes | No | Yes |
| 12A/80G Eligible | Yes | Yes | Yes |
| Easy to Dissolve | Yes | Difficult | Difficult |
| Govt. Interference | Minimal | High | High |
Ready to Start Your Noble Initiative?
Register your Section 8 Company and make a lasting social impact