Are you planning to start a charitable organization in India? One of the most effective legal structures for a non-profit is a Section 8 Company. It’s officially recognized under Indian law and is ideal for initiatives in education, healthcare, environmental protection, the arts, or any other social cause.

Here’s everything you need to know to get started

What is a Section 8 Company?

A Section 8 Company is a non-profit legal entity formed under Section 8 of the Companies Act, 2013. Its purpose is to promote social welfare, science, education, research, religion, or charity.

Unlike a regular company, a Section 8 Company does not distribute profits. Any income or surplus must be reinvested to support its core mission.

Key Benefits

Why do many NGOs and non-profits prefer Section 8 Companies? Here are the top advantages:

• Tax Exemptions: Eligible for 12A and 80G registrations under the Income Tax Act.
• No Minimum Capital: You can register with any amount of capital.
• Separate Legal Identity: The company can own property, sign contracts, and operate independently.
• Limited Liability: Members are not personally liable for company debts.
• Funding Access: Eligible to receive CSR donations, government grants, and public contributions.

Who Can Register?

You’ll need:

• At least 2 directors and 2 shareholders
• 1 Indian resident director
• A registered office address in India
• A clear non-profit or charitable objective

Note: Directors and shareholders can be the same people.

Required Documents

To proceed with registration, prepare the following:

• PAN and Aadhaar of all directors and shareholders
• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• Memorandum of Association (MoA) and Articles of Association (AoA)
• Proof of office address (e.g., utility bill, rent agreement)
• Signed declarations (Forms INC-14 and INC-15)

Step-by-Step Registration Process

Step 1: Get DSCs

Digital signatures are required for directors to file documents online.

Step 2: Apply for DINs

Directors need a DIN, which can be obtained from the MCA portal.

Step 3: Reserve a Name

Use the RUN (Reserve Unique Name) service to book your company name.

Step 4: File SPICe+ Form

This integrated application includes all incorporation details, PAN, TAN, MoA, and AoA.

Step 5: Receive Certificate

Once approved, you’ll get a Certificate of Incorporation and Corporate Identification Number (CIN).

How to Track Your Application

Go to the MCA Portal and search using your company name or CIN. From there, you can check the status and download official documents.

FAQs

Q1: Can I register online?
Yes, the entire process is conducted through the MCA’s online platform.

Q2: Can Section 8 Companies accept donations?
Yes. Once registered under 12A and 80G, donations are legal and tax-deductible for donors.

Q3: Is an Indian office address required?
Yes, a physical address in India is mandatory at the time of registration.

Q4: How many people are needed to form the company?
At least two directors and two shareholders.

Final Thoughts

Starting a Section 8 Company is the most efficient and legally secure way to build a non-profit in India. It gives your organization a formal identity, protects your mission, and enables long-term growth through funding and public trust.

If your vision includes meaningful social impact, this is the right foundation to build on.