If you're passionate about making a difference in society—whether through education, healthcare, environmental work, or any charitable cause—setting up a Section 8 Company is one of the most effective legal routes in India. Recognized under the Companies Act, 2013, Section 8 Companies are designed for individuals and organizations committed to social impact without the motive of profit.
This guide provides a clear, step-by-step walk through of the registration process, eligibility requirements, documents needed, benefits, and everything else you should know before you begin.
What is a Section 8 Company?
A Section 8 Company is a non-profit organization incorporated under the Ministry of Corporate Affairs (MCA). Its primary goal is to promote charitable activities like education, social welfare, art, science, and environmental protection. Unlike private or public limited companies, Section 8 Companies cannot distribute profits to their members. Instead, all income must be used to further the organization's stated objectives.
Why Choose a Section 8 Company? Key Benefits
Registering a Section 8 Company offers several legal, financial, and operational advantages:
Tax Benefits: Eligible for exemptions under Sections 12A and 80G of the Income Tax Act—for both the organization and donors.
No Minimum Capital Requirement: You can start with any amount of capital.
Legal Recognition: Operates as a separate legal entity, lending more credibility when dealing with donors, institutions, and government bodies.
Limited Liability: Members' liability is restricted to their shareholding.
Access to Funds: Eligible for government grants, foreign donations (with FCRA registration), and CSR (Corporate Social Responsibility) contributions.
Who Can Start a Section 8 Company?
To be eligible, the following conditions must be met:
At least 2 directors and 2 shareholders
Minimum 1 resident Indian director
A registered office address in India
A clearly defined non-profit objective
Documents Required for Section 8 Registration
Prepare the following documents before starting your application:
PAN and Aadhaar of all directors and shareholders
Digital Signature Certificate (DSC) for signing electronic forms
Director Identification Number (DIN)
Memorandum of Association (MoA) and Articles of Association (AoA)
Address proof of the registered office
Declarations in INC-14 (from a practicing professional) and INC-15 (from directors)
Step-by-Step Guide to Registering a Section 8 Company
Step 1: Apply for DSC (Digital Signature Certificate)
Required to digitally sign forms submitted on the MCA portal.
Step 2: Obtain DIN (Director Identification Number)
Each director must have a valid DIN, which can be applied for through the MCA portal.
Step 3: Reserve the Company Name
Choose a name that reflects your mission and isn’t already taken. Reserve it using the RUN (Reserve Unique Name) service on the MCA website.
Step 4: File the SPICe+ Form
Complete the SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) form, which includes:
Company details
MoA and AoA
PAN and TAN applications
Supporting documents upload
Step 5: Receive Certificate of Incorporation
Once verified and approved by the Registrar of Companies (RoC), you'll receive your Certificate of Incorporation and Corporate Identification Number (CIN).
How to Track Your Registration Status
You can check the status of your application anytime on the MCA portal using your company name or CIN. You can also download incorporation documents and approvals from your dashboard.
Frequently Asked Questions
Q1: How many people are required to start a Section 8 Company?
A minimum of two directors and two shareholders is required.
Q2: Can the entire process be done online?
Yes, the complete process is managed digitally via the MCA portal.
Q3: Can a Section 8 Company receive donations?
Yes. After registration under Sections 12A and 80G, the company can legally accept donations and offer tax deductions to donors.
Q4: Is an office address in India mandatory?
Yes, a valid registered address in India is necessary during incorporation.
Final Thoughts
Starting a Section 8 Company is more than just a legal formality—it's a powerful step toward building a lasting social impact. With tax exemptions, legal recognition, and access to funding, it provides the right foundation for your non-profit vision.
If you're ready to make a difference, forming a Section 8 Company can give your mission the structure, credibility, and compliance it needs to grow.