Section 8 Company Registration | NGO/NPO registration under Companies Act | Bizeneed
A Section 8 Company is a non-profit organisation registered under the Companies Act, 2013 for promoting charitable objects like education, commerce, science, art, or social welfare. Unlike a trust or society, a Section 8 Company has enhanced credibility with government bodies, access to foreign funding (FCRA), and tax exemptions under Sections 12A and 80G. We handle the complete registration from ₹7,999.
Section 8 Company Registration
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The key facts, in one place
Everything a founder usually has to piece together from five different pages, in one place.
- Governing law
- Companies Act, 2013 (Section 8)Administered by MCA + Central Government
- Authority
- Ministry of Corporate Affairs (MCA)mca.gov.in
- Min. members
- 2 (individuals or body corporate)No upper limit
- Min. directors
- 2One must be Indian resident
- Objects
- Charitable onlyNo profit distribution to members
- License
- Required from Central GovernmentBefore incorporation
- Tax exemption
- 12A registration + 80GIncome tax exemptions
- FCRA
- Applicable for foreign fundsForeign Contribution Regulation Act
- Name suffix
- Must end with 'Ltd' or 'Limited'Cannot use 'Association', 'Society'
- Our fee from
- ₹7,999Includes 12A/80G application
What is a Section 8 Company?
A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act, 2013 (earlier Section 25 of the Companies Act, 1956). It is incorporated for promoting charitable objects such as education, commerce, science, art, religion, charity, social welfare, or any other useful purpose.
Section 8 Companies enjoy several advantages over traditional trusts and societies: a separate legal identity, limited liability for members, enhanced credibility with government bodies and international donors, easier access to FCRA (Foreign Contribution Regulation Act) registration for receiving foreign donations, and tax exemptions under Sections 12A and 80G of the Income Tax Act.
The Central Government must approve the registration after verifying the objects and the promoters' track record. The government may also impose conditions on the Section 8 Company's activities to ensure the charitable objectives are met. Any profits must be applied solely towards promoting the company's objects - no dividends can be distributed to members.
Section 8 Company vs Trust vs Society
All three are non-profit structures. Here is how Section 8 Companies compare to Trusts and Societies.
| Aspect | Section 8 Company | Trust / Society |
|---|---|---|
| Governing law | Companies Act, 2013 / MCA | Indian Trusts Act / Societies Registration Act |
| Authority | MCA + Central Government | Registrar of Trusts / Registrar of Societies |
| Legal status | Body corporate | Non-corporate body |
| Liability | Limited (members not personally liable) | Trustees/managing committee have liability |
| Credibility | High - government recognised | Moderate |
| Foreign funding | FCRA eligible (easier process) | FCRA eligible (more scrutiny) |
| Tax exemptions | 12A + 80G available | 12A + 80G available |
| Registration time | 15-20 days | 10-15 days |
| Compliance | Annual return (MGT-7) + AOC-4 | Simpler annual accounts |
| Governance | Board of directors, AGM | Managing committee / trustees |
Who should register a Section 8 Company?
Section 8 is the right non-profit structure when credibility and FCRA access matter.
- NGOs working at scale and needing government credibility
- Charitable organisations seeking FCRA registration for foreign funding
- Educational institutions wanting a formal corporate structure
- Social welfare organisations planning large-scale programs
- Trusts or societies wanting to upgrade to a more credible structure
- Organisations applying for government grants that require a Section 8 Company
By entity type
| Entity | Governed by | Eligible |
|---|---|---|
| Section 8 Company | Companies Act, 2013 / MCA | ✓ Yes |
| Trust | Indian Trusts Act / State Trust Act | ✓ Yes |
| Society | Societies Registration Act, 1860 | ✓ Yes |
Common sectors for Section 8 Companies
Education
- Schools and coaching institutions
- Scholarship funds
- Skill development NGOs
- Research foundations
Healthcare
- Charitable hospitals
- Health awareness campaigns
- Medical research organisations
- Mental health NGOs
Social welfare
- Poverty alleviation programs
- Women empowerment
- Child welfare
- Rural development
Environment
- Conservation organisations
- Climate action NGOs
- Wildlife protection
- Sustainable development initiatives
What does not qualify
- ✕Activities must be exclusively charitable - no commercial profit-making activities allowed
- ✕No dividends or profits can be distributed to members under any circumstances
Is Section 8 the right structure for your NGO?
Answer three questions and we will recommend the right non-profit structure.
Do you plan to operate at scale (state/national level)?
Do you need to receive foreign funding?
Is government credibility important for your work?
3 questions to go
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Documents required for Section 8 Company registration
Common to every entity
- PAN Card of all directors/membersMandatory
- Aadhaar Card of all directors/membersMandatory
- Passport size photos of directorsMandatory
- Registered office address proof (utility bill)Mandatory
- NOC from property owner (if rented)Mandatory
- Rent agreement (if office is rented)
- Proposed name (2-3 alternatives, ending with Foundation/Association/Society)Mandatory
- Detailed statement of proposed objectsMandatory
- List of promoters with addresses and occupationsMandatory
Entity-specific
| Entity | Additional documents |
|---|---|
| Individuals as promoters | PAN, Aadhaar, photos, address proof, income tax returns (2 years) |
| Trust/Society converting | Trust deed/society registration certificate, list of trustees/managing committee, past annual reports |
| Corporate promoters | PAN, certificate of incorporation, board resolution, MOA/AOA |
Get the Section 8 document checklist as a PDF
A one-page checklist for your NGO registration.
How Section 8 Company registration works
Section 8 registration has two stages: obtaining a license from the Central Government, followed by MCA incorporation.
Name reservation and license application
We file the application with the Regional Director (Central Government) for a license under Section 8. The application includes proposed objects, memorandum, and promoter details. The government typically takes 10-15 days to review.
License from Central Government
After reviewing the objects and promoters, the Central Government issues a license under Section 8. The license is a prerequisite for MCA incorporation. We follow up with the Regional Director's office for any clarifications needed.
DIN & DSC application
All proposed directors need DIN and DSC. We apply simultaneously to save time.
MOA & AOA drafting
Our CA drafts the MOA with charitable objects and the AOA with governance rules. The MOA must state that profits will not be distributed to members under any circumstances.
SPICe+ filing and incorporation
With the Section 8 license in hand, we file SPICe+ with MCA. The company name must include words like Foundation, Association, Council, Academy, or Charitable Trust. MCA issues the incorporation certificate with CIN.
Section 8 registration is more involved than a regular Pvt Ltd because of the Central Government license stage. The license approval can take 2-4 weeks as the government reviews your objects and promoters. We prepare a thorough application with detailed objects and promoter background to minimise delays. Also, the objects clause in your MOA is critical - once approved, any change in objects requires fresh government approval, so draft them carefully to cover your current and planned activities.
How long does Section 8 registration take?
Section 8 registration takes longer than a regular company because of the Central Government license requirement.
| Stage | Duration |
|---|---|
| Name reservation | 1-2 days |
| License application to Central Government | 10-15 days |
| License approval | 5-7 days |
| DIN, DSC, and MOA/AOA | 3-4 days |
| SPICe+ filing and certificate | 3-5 days |
Total timeline: 15-20 working days from complete documents. Government license approval is the longest step and is outside our control. We recommend applying with a thorough application to avoid requests for clarification.
What it costs
Section 8 registration costs more than a regular Pvt Ltd due to the Central Government license and post-registration tax applications.
Basic
Section 8 incorporation + license
- Name reservation
- Central Government license application
- DIN + DSC (2 directors)
- MOA & AOA drafting
- SPICe+ filing
- Incorporation Certificate
- Email support
Standard
Incorporation + tax exemption setup
- Everything in Basic
- 12A registration application
- 80G registration application
- Bank account opening assistance
- Post-registration compliance setup
- WhatsApp support
Premium
Full non-profit setup
- Everything in Standard
- FCRA registration application
- Annual compliance (1 year)
- Dedicated CA/CS
- CSR grant application support
- Priority processing
Full fee breakdown
| Particulars | Government fee | Professional fee |
|---|---|---|
| Central Government license (Section 8) | ₹2,000 | Included |
| SPICe+ filing (authorized capital ≤ ₹10L) | Nil | Included |
| DIN (per director) | ₹500 | Included |
| DSC (Class 3, 2 years) | ₹1,000-2,000 | Included |
| Stamp duty | ₹100-1,000 | Included |
| 12A registration | Nil | Included (Standard+) |
| 80G registration | Nil | Included (Standard+) |
| Professional fee - Basic plan | Nil | ₹7,999 |
| Professional fee - Standard plan | Nil | ₹14,999 |
| Professional fee - Premium plan | Nil | ₹24,999 |
Not included in any tier:
- ✕ FCRA registration fee (separate application, approx ₹5,000)
- ✕ State-specific stamp duty
- ✕ Professional fees for CSR grant applications
Which Section 8 package do you need?
Answer three quick questions and we will recommend the right package with reasoning.
Do you need FCRA registration?
Do you need 12A/80G tax exemptions?
Do you need ongoing compliance support?
Why register as a Section 8 Company?
Credibility & trust
- Government recognition - MCA registration provides national-level credibility(Companies Act, 2013, Section 8)
- Corporate structure - donors, government bodies, and CSR programs prefer Section 8 Companies
- Limited liability - members are not personally liable for the company's obligations
Tax benefits
- 12A registration - exemption from income tax on surplus income used for charitable purposes(Income Tax Act, 1961, Section 12A)
- 80G registration - donors can claim 50-100% tax deduction on donations(Income Tax Act, 1961, Section 80G)
- No dividend distribution tax - profits are reinvested in charitable activities
Foreign funding
- FCRA eligibility - Section 8 Companies can apply for Foreign Contribution Regulation Act registration(FCRA, 2010)
- Easier FCRA process - smoother approval compared to Trusts and Societies
- Transparent governance - required by international donors and government grants
Legal & governance
- Separate legal entity - can own property, enter contracts, and sue in its own name(Companies Act, 2013, Section 9)
- Perpetual succession - continues regardless of changes in membership
- Governance structure - board of directors and AGM requirements create accountability
Section 8 vs Trust vs Society: the real differences
- Section 8 is a corporate body; Trusts and Societies are not. Section 8 Companies are body corporate under the Companies Act, giving them a separate legal identity superior to trusts. This gives better legal standing for contracts, property ownership, and dispute resolution. Courts treat Section 8 Companies as more credible entities.
- FCRA is easier for Section 8 Companies. The FCRA department has historically found the MCA's due diligence on Section 8 Companies more reliable than on Trusts and Societies. If foreign funding is on your roadmap, register as Section 8. The FCRA approval process is smoother and faster.
- Objects clause is binding for Section 8. The objects declared in the MOA at incorporation determine what activities the Section 8 Company can legally undertake. Any change in objects requires Central Government approval - unlike Trusts where the trust deed can be amended more easily. Draft objects broadly but precisely.
Common Section 8 registration mistakes
Using a name that sounds commercial
Section 8 Company names must not imply commercial activity. We verify name eligibility against MCA guidelines before filing.
Not specifying objects clearly in the MOA
The objects clause is reviewed by the Central Government. Vague or overly broad objects may be rejected or asked for clarification, delaying approval by weeks.
Ignoring the profit distribution restriction
Section 8 Companies cannot distribute any profits to members. This must be stated in the MOA and AOA. Violation leads to revocation of the Section 8 license.
Not applying for 12A/80G after incorporation
12A and 80G registrations are separate applications under the Income Tax Act, not automatic with MCA incorporation. We apply for both immediately after the incorporation certificate.
Every rejection above has a fix - most come down to how the innovation note is written, not the business itself. Most applicants don't know that until after the rejection.
If you have already been rejected, or want to make sure it does not happen, the 15-minute call below is the fastest path.
Section 8 Company compliance calendar
Section 8 Companies have similar compliance requirements as Pvt Ltd companies, with additional NGO-specific filings.
| Form | Trigger | Due date |
|---|---|---|
| MGT-7 (Annual Return) | Every financial year | Within 60 days of AGM |
| AOC-4 (Financial Statements) | Every financial year | Within 30 days of AGM |
| DIR-3 KYC | Every director, annually | By 30 September each year |
| Income Tax Returns | Every financial year | 31 October (audited) |
| Form 10-IC (13% surcharge opt-out) | Every financial year | Due with income tax return |
| CSR filing (if applicable) | If spending ≥ ₹50L or turnover ≥ ₹1Cr | As per Companies Act schedule |
| FCRA annual return | If FCRA registered | 31 December each year |
Section 8 compliance is more involved than regular companies. We bundle ROC filing, GST, and accounting. see compliance plans.
How Bizeneed handles Section 8 registration
Frequently asked questions
A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act, 2013 (previously Section 25 under the 1956 Act). It is formed for promoting charitable objects like education, science, art, commerce, or social welfare, and cannot distribute profits to its members.
There must be at least 2 members (individuals or body corporate), at least 2 directors (one must be an Indian resident), and the proposed objects must be exclusively charitable. The Central Government must be satisfied that registration as Section 8 is appropriate. Promoters should have a clean track record.
Section 8 is a body corporate under MCA with enhanced credibility and separate legal identity. Trusts are governed by the Indian Trusts Act or state trust acts. Societies are governed by the Societies Registration Act, 1860. Section 8 has better FCRA prospects, stronger legal standing, and greater credibility with government bodies.
Section 8 registration takes 15-20 working days because it requires Central Government license approval before MCA incorporation. Steps: name reservation (1-2 days), license application to Central Government (10-15 days), license approval (5-7 days), DIN/DSC and MOA/AOA (3-4 days), SPICe+ filing (3-5 days).
Objects must be charitable in nature: promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection. Commercial profit-making activities are not permitted. Objects must be clearly defined and exclusively charitable.
Before MCA incorporation, a license must be obtained from the Central Government (via the Regional Director) under Section 8. The government reviews the proposed objects and promoters before issuing the license. The license confirms that the organisation's objects are charitable and registration as Section 8 is appropriate.
Yes, Section 8 Companies can receive foreign contributions by obtaining FCRA (Foreign Contribution Regulation Act) registration from the Ministry of Home Affairs. Section 8 Companies typically have a smoother FCRA application process compared to Trusts and Societies due to MCA's governance oversight.
Section 8 Companies can apply for 12A registration (exemption from income tax on surplus income used for charitable purposes) and 80G registration (allowing donors to claim 50-100% tax deduction on donations). Both are under the Income Tax Act, 1961, and require separate applications to the Income Tax Department.
No. Section 8 Companies are prohibited from distributing any profits or dividends to their members. All income and surplus must be applied solely towards promoting the company's charitable objects. Violation of this provision can result in revocation of the Section 8 license by the Central Government.
Section 8 Companies must file: (1) MGT-7 (Annual Return), (2) AOC-4 (Financial Statements), (3) DIR-3 KYC for directors by 30 September, (4) Income Tax Returns by 31 October, (5) FCRA annual return if FCRA registered, and (6) CSR filings if applicable. The compliance burden is similar to a Private Limited Company.
Yes. Trusts and Societies can convert to Section 8 Companies through a formal conversion process involving MOA/AOA drafting and SPICe+ filing. The conversion requires the existing trust deed or society registration documents. We handle the complete conversion process.
If the license application is rejected, the Central Government communicates the reasons. Common reasons include: unclear or non-charitable objects, inadequate promoter credentials, or insufficient documentation. We revise the application based on the feedback and re-apply at no extra cost.
There is no minimum paid-up capital requirement for Section 8 Companies. However, the company must demonstrate that it has adequate funds to carry out its proposed activities. The authorized capital is typically kept at ₹1 lakh.
Yes. Section 8 Companies are eligible to receive CSR (Corporate Social Responsibility) funds from companies under Section 135 of the Companies Act, 2013. Many large corporates prefer partnering with Section 8 Companies due to their MCA-registered status and transparency.
Yes. A Section 8 Company can be wound up by filing an application with the NCLT (National Company Law Tribunal). Upon dissolution, the remaining assets must be transferred to another Section 8 Company or similar organisation with similar objects - not distributed to members.
Written by Rohan Kulkarni, Compliance Content Lead · Reviewed by CA Ananya Reddy, Chartered Accountant, FCA
Last updated 5 September 2026
Sources
- Ministry of Corporate Affairs - Companies Act, 2013 (Section 8)
- MCA Section 8 Guidelines
- FCRA Portal - Ministry of Home Affairs
Eligibility thresholds, statutory sections and filing deadlines on this page are verified periodically against the sources above. Tax and compliance positions can change; confirm specifics with our team or your CA before relying on them for a filing decision.
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