Introduction to Section 8 Company Registration
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, formed for promoting charitable, educational, social, cultural, religious, or environmental objectives. Unlike other companies, profits of a Section 8 Company are reinvested to achieve its objectives and not distributed as dividends.
This Saving Mantra guide explains the step-by-step process for Section 8 Company registration in India, covering eligibility, documents, registration steps, timelines, and post-registration compliance—ideal for NGOs, CSR projects, startups with social goals, and professional institutions.
What Is a Section 8 Company?
A Section 8 Company is:
- A legally incorporated non-profit company
- Registered with the Ministry of Corporate Affairs (MCA)
- Eligible for tax exemptions and CSR funding (subject to approvals)
Key Benefits of Section 8 Company Registration
- Separate legal entity status
- High credibility with donors, corporates, and government
- Eligible for CSR funding
- No minimum capital requirement
- Exemptions from certain compliances and stamp duties
- Easy nationwide operations
Eligibility Criteria for Section 8 Company
To register a Section 8 Company:
- Minimum 2 directors (Private) or 3 directors (Public)
- At least 1 director must be an Indian resident
- Objects must be non-profit in nature
- Profits must be used only for promoting objectives
- No dividend distribution allowed
Step-by-Step Process for Section 8 Company Registration in India
Step 1: Obtain Digital Signature Certificate (DSC)
- DSC is mandatory for directors and subscribers
- Used for online filing on MCA portal
Step 2: Apply for Director Identification Number (DIN)
- DIN is required for all proposed directors
- Can be applied through SPICe+ form
Step 3: Name Approval (SPICe+ Part A)
- Propose suitable company name
- Name must reflect charitable objectives
- No words like “Private Limited” or “Limited” required
Step 4: Draft MOA & AOA
Prepare:
- Memorandum of Association (MOA) – objectives and scope
- Articles of Association (AOA) – internal governance rules
MOA must clearly state non-profit intent.
Step 5: Apply for Section 8 License
- Apply online through SPICe+ Part B
- Attach declarations, MOA, AOA, and financial projections
- Declaration of non-profit intent by directors
Step 6: File Incorporation Forms
Submit integrated forms:
- SPICe+ (INC-32)
- eMOA (INC-33)
- eAOA (INC-34)
Step 7: Certificate of Incorporation
Once approved by MCA:
- Section 8 License issued
- Certificate of Incorporation granted
- Company legally comes into existence
Documents Required for Section 8 Company Registration
- PAN & Aadhaar of directors
- Address proof of directors
- Passport-size photographs
- Registered office address proof
- Utility bill (not older than 2 months)
- Rent agreement or ownership proof
- MOA & AOA
- Declarations and affidavits
Time Required for Registration
- Average timeline: 10–20 working days
- Subject to document accuracy and MCA approvals
Post-Registration Compliance for Section 8 Company
After incorporation:
- Apply for PAN & TAN
- Open bank account
- Maintain books of accounts
- File annual returns with MCA
- Apply for 12AB and 80G registration (optional but recommended)
- Comply with CSR, FCRA (if applicable), and income tax laws
Common Mistakes to Avoid
- Vague or commercial objectives
- Incorrect financial projections
- Mismatch in documents
- Delay in post-registration compliances
- Non-maintenance of statutory records
How Saving Mantra Helps
Saving Mantra provides end-to-end Section 8 Company registration services, including:
- Structure and eligibility assessment
- Drafting MOA & AOA
- MCA filings and follow-ups
- Post-registration compliance support
- Integration with 12AB, 80G, CSR & FCRA services
Disclaimer
This article is for informational purposes only and does not constitute legal, tax, or professional advice. Registration requirements and compliance obligations may change as per MCA or government notifications. Readers are advised to consult qualified professionals before proceeding. Saving Mantra shall not be responsible for actions taken based on this information.