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- End-to-end section 8 Company registration support
- Affordable & transparent pricing
- Expert CA & compliance team
- Online process | PAN-India service
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What is a Section 8 Company?
It is a specific type of company registered under Section 8 of the Companies Act, 2013, designed for non-profit purposes.
- The Core Rule: It must use its profits and income exclusively to promote its objectives (like education or charity).
- The No-Dividend Rule: It is strictly prohibited from paying any dividends to its members or directors.
- The “License”: Unlike regular companies, it must obtain a special license from the Central Government (Ministry of Corporate Affairs) to operate.
when should you register?
- Scaling Up: When your social project grows beyond the capacity of a small trust and requires a professional corporate structure.
- CSR Funding: When you want to approach big companies for Corporate Social Responsibility (CSR) funds (most corporates prefer Section 8 entities due to high transparency).
- International Grants: When you plan to collaborate globally or apply for FCRA (Foreign Contribution Regulation Act) to receive foreign donations.
- Building a Brand: When you want to operate under a unique name (like “Earth Care Foundation”) without having to add “Private Limited” to the end.
why choose a section 8 company?
- Global Credibility: Registered under central law, making it more trustworthy for banks and international donors.
- Perpetual Succession: The company is a separate legal entity. It continues to exist forever, even if the directors or members change or pass away.
- Legal Protection: Directors have Limited Liability. Their personal assets are safe if the NGO incurs debts (unlike a Trust where trustees can be personally liable).
Section 8 Company vs Trust vs Society: Key Differences
Deciding on the right legal structure is crucial for your NGO's success. While Trusts and Societies are traditional models, a Section 8 Company offers higher corporate credibility, easier compliance management, and is highly preferred by international donors. Use the comparison table below to find the best fit for your mission.
| Feature | Section 8 Company | Trust / Society |
|---|---|---|
| Credibility | High (Global Recognition) | Moderate (Local Recognition) |
| Transferability | Easy to transfer ownership | Difficult / Not possible |
| Foreign Funding | Highly preferred for FCRA | Moderate preference |
| Name Suffix | No "Ltd" or "Pvt Ltd" required | Name remains as is |
| Transparency | High (Annual ROC Filings) | Lower |
who can register?
- Individuals: Any two or more persons (even foreign nationals, as long as one director is a resident of India).
- Existing Entities: Even a partnership firm or a Private Limited company can become a member of a Section 8 company.
- Social Entrepreneurs: Visionaries focused on arts, science, sports, education, research, social welfare, or environmental protection.
Documents Required for Section 8 Company Registration
For Directors & Shareholders
- PAN Card
- Aadhaar Card
- Latest address proof (bank statement or utility bill)
- Passport-size photograph
For Registered Office
- Utility bill (not older than 2 months)
- Rent agreement or ownership proof
- No Objection Certificate (NOC) from owner
Eligibility & Basic Requirements
- Minimum 2 Directors
- Minimum 2 Shareholders
- Minimum paid-up share capital as prescribed by law
- Registered office address in India
Benefits of Section 8 Company Registration
Tax Exemptions (12A & 80G)
The company pays zero tax on its income (under 12A), and donors get a 50% tax deduction on their donations (under 80G).
Zero Stamp Duty
Exempted from paying stamp duty on the Memorandum and Articles of Association, which saves significant initial costs.
No Minimum Capital
There is no requirement to have a minimum paid-up capital (you can start with ₹0).
Exemption from "Limited"
You are not required to use the suffix "Private Limited" or "Limited" in your name.
Easier Compliance
Enjoy several relaxations under the Companies Act, such as a shorter notice period (14 days) for general meetings.
Transfer of Ownership
Ownership and management can be easily transferred through simple board resolutions, unlike the complex process in a Trust.
Step-by-Step Process of Section 8 Company Registration
FOXTAX follows a structured and compliant registration process:
Business Consultation & Planning
We assess your business goals, capital structure, and compliance requirements.
Document Collection & Verification
Required documents of directors, shareholders, and registered office are collected and verified.
Name Approval
Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) are obtained.
DSC & DIN Registration
Digital Signature Certificate (DSC) and Director Identification Number (DIN) are obtained.
Incorporation Filing
MOA, AOA, and incorporation forms are prepared and filed with the MCA.
Certificate of Incorporation & PAN/TAN
Upon approval, MCA issues the Certificate of Incorporation along with PAN and TAN.
Frequently Asked Questions (FAQs)
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