Section 8 Company Registration: Complete Guide for NGOs + Non-Profits (2026)
Section 8 company registration for NGOs, non-profits, charitable institutions. 12A + 80G, FCRA, donations, governance. From ₹6,999, 30-45 days.
A Section 8 Company is a special type of company registered under Section 8 of the Companies Act, 2013 for promoting charity, art, science, education, sports, religion, or any other social welfare objective. It is the preferred structure for NGOs, non-profits, charitable institutions, and social enterprises in India.
What is a Section 8 Company?
A Section 8 Company is a company with charitable objects, limited by shares or guarantee, that uses its profits to promote its objects (not distribute as dividends). It is a hybrid of a company and a trust — it has corporate structure + limited liability + tax benefits of a charity.
Benefits of Section 8 Company
- Limited liability for members
- Separate legal entity (own property, sue, be sued)
- Eligible for 12A (income tax exemption) + 80G (donor deduction)
- Eligible for FCRA (foreign donations)
- Eligible for grants from government, CSR funds, foundations
- No requirement to use "Limited" or "Pvt Ltd" in the name (better for trust)
- Credibility with donors, partners, government
- Perpetual succession
Requirements
- Minimum 2 directors (no maximum)
- Minimum 2 members (no share capital needed; can be limited by guarantee)
- A unique company name ending in "Foundation", "Society", "Trust", "Council", "Association", "Charitable", etc.
- Registered office address in India
- DSC + DIN for all directors
- Memorandum of Association (MoA) + Articles of Association (AoA) with charitable objects
- No minimum capital
Registration Process
Step 1: Get DSC + DIN for all directors
Step 2: Apply for Name Approval (RUN)
Section 8 names are not subject to the same restrictions as Pvt Ltd. We recommend including words like "Foundation", "Trust", "Charitable" to clearly indicate the non-profit nature.
Step 3: Apply for Section 8 License (INC-12)
Apply for a Section 8 license from the Regional Director (RD) of MCA. The RD verifies the charitable objects + governance structure + benefit to public.
Step 4: File SPICe+ for Incorporation
Once the Section 8 license is granted, file SPICe+ for incorporation. Get Certificate of Incorporation (COI).
Step 5: Apply for 12A + 80G + FCRA
Apply separately for 12A (income tax exemption) + 80G (donor deduction) + FCRA (foreign donations) from the Income Tax Department and Home Ministry.
Timeline & Fees
| Item | Timeline | Cost |
|---|---|---|
| DSC + DIN (per director) | 1-2 days | ₹500-₹1,500 per director |
| Name approval (RUN) | 2-5 days | ₹1,000 |
| Section 8 license (INC-12) | 15-30 days | ₹2,000 |
| SPICe+ filing + incorporation | 5-10 days | Varies |
| Stamp duty | Same day | State-wise |
| 12A + 80G application | 30-60 days | Government fees ₹1,000 |
| FCRA application | 60-90 days | Government fees ₹5,000-₹10,000 |
| Our total fee | 30-45 days | From ₹6,999 |
Section 8 vs Trust vs Society
| Parameter | Section 8 | Trust | Society |
|---|---|---|---|
| Governing act | Companies Act 2013 | Indian Trusts Act 1882 | Societies Registration Act 1860 |
| Members | Members + directors | Trustees + beneficiaries | Governing council + members |
| Liability | Limited | Trustee personal liability possible | Limited |
| Tax benefits (12A + 80G) | Yes (eligible) | Yes (eligible) | Yes (eligible) |
| FCRA eligible | Yes | Yes | Yes |
| Annual compliance | High (ROC filings) | Low (ITR only) | Moderate (annual return) |
| Credibility with donors | High | Moderate | Moderate |
| Best for | Large NGOs, social enterprises | Family trusts, schools | Clubs, small NGOs |
Frequently Asked Questions
Q: Can a Section 8 company have shareholders?
A: Yes, Section 8 can be limited by shares or by guarantee. If by shares, the shares are held by members. If by guarantee, members guarantee a nominal amount (typically ₹1-₹10 per member) in case of winding up.
Q: Can Section 8 distribute profits?
A: No. Section 8 companies cannot distribute profits as dividends. All profits must be used to promote the charitable objects.
Q: Can a Section 8 company receive foreign donations?
A: Yes, with FCRA registration. Apply separately for FCRA certificate from the Home Ministry. Initial registration is valid for 5 years, renewable.
Q: Is GST applicable on Section 8 company?
A: Section 8 companies with turnover > ₹20L need GST registration. Income from charitable activities (donations, grants) is generally exempt from GST. Income from commercial activities (sale of goods, services for a fee) is taxable.