What is a Section 8 Company?
A Section 8 Company Registration is a legal entity formed with the objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, and protection of the environment. Unlike private limited or public companies, its profits are not distributed among members but reinvested to advance its purpose.
Key Objectives of a Section 8 Company
• Promoting education and literacy
• Uplifting underprivileged communities
• Driving sustainable development
• Encouraging arts and culture
Benefits of Section 8 Company Registration
Registering a Section 8 company offers numerous advantages, both from a legal and operational perspective.
Tax Exemptions and Legal Privileges
• Eligible for Income Tax Act exemptions under Section 12AA and 80G.
• No minimum capital requirement.
• Reduced stamp duty during registration.
Enhanced Credibility and Trust
• Enhanced trust from donors, government agencies, and stakeholders.
• More professional governance compared to societies and trusts.
• Eligibility to receive foreign contributions under FCRA (after approval).
Eligibility Criteria to Register a Section 8 Company
The basic qualifications are key before starting the section 8 company registration process.
Who Can Apply?
• Any individual or group of individuals (residents or non-residents)
• Indian companies or LLPs with charitable objectives
Minimum Requirements
• Minimum 2 directors for a private limited structure
• A registered office address in India
• At least one director must be a resident of India
Step-by-Step Section 8 Company Registration Process
Let’s walk through the detailed process to legally incorporate your Section 8 Company.
Step 1: Acquire Digital Signature Certificate (DSC)
All directors must obtain a DSC to sign documents electronically.
Step 2: Obtain Director Identification Number (DIN)
Apply for a DIN for each director via the MCA portal.
Step 3: Name Approval via RUN (Reserve Unique Name)
Submit your company name options under Form RUN. Include “Foundation,” “Association,” “Forum,” or “Federation” in the name to denote a not-for-profit motive.
Step 4: Filing of SPICe+ Form
This integrated form (Part A + B) includes:
• Company incorporation
• PAN and TAN application
• EPFO and ESIC registration
Step 5: Drafting MOA & AOA
• MOA (Memorandum of Association): Outlines the company’s main objectives.
• AOA (Articles of Association): Defines rules for internal management.
Step 6: Issuance of License under Section 8
The ROC forwards the application to the Regional Director for license approval.
Step 7: Certificate of Incorporation
Upon approval, the Certificate of Incorporation along with the Section 8 license is issued.
Documents Required for Section 8 Company Registration
Collect and organize the following before filing.
Essential Documents for Directors and Registered Office
• PAN Card and Aadhar Card
• Passport (for foreign nationals)
• Address proof and passport-size photo
• Utility bill and NOC from the premises owner
MOA, AOA, and Declaration Forms
• MOA and AOA in prescribed format
• INC-14 (Chartered Accountant declaration)
• INC-15 (Applicant declaration)
• Consent of directors in DIR-2 format
NITI Aayog Registration for Section 8 Companies
Why NITI Aayog Registration is Important
To work with government agencies or apply for grants, a Section 8 company must be registered with the NGO Darpan Portal managed by NITI Aayog Registration.
How to Apply for NITI Aayog Registration
• Visit NGO Darpan Portal
• Create a login and submit basic NGO details
• Upload documents such as PAN, Registration Certificate, and Annual Report
• Get a Unique ID for future government dealings
Compliance Requirements Post Registration
Staying compliant is vital for maintaining your Section 8 status.
Annual Filings and Returns
• File Form AOC-4 (financial statements) and MGT-7 (annual return)
• Conduct statutory audits each year
Board Meetings and Financial Disclosures
• Minimum 2 board meetings per year
• Maintain minutes, accounts, and updated registers
Common Mistakes to Avoid During Registration
Incorrect Form Submission
Incorrect DSC, expired DINs, or incomplete forms can lead to rejection.
Name Conflicts and Trademark Issues
Always check the MCA database and conduct a trademark search to avoid duplication or legal conflicts.
How to Maintain Section 8 Company Status Legally
• Regular compliance checks
• File annual reports timely
• Keep books of accounts updated
• Renew 80G and 12AA certificates
Conclusion
Incorporating a Section 8 Company legally is one of the most structured ways to launch a not-for-profit initiative in India. From gaining tax exemptions to building a trustworthy brand, the benefits are immense. By following the right section 8 company registration process and securing your NITI Aayog registration, you’re setting your organization up for long-term success.
Whether you’re an aspiring social entrepreneur or an established philanthropist, this guide should serve as your go-to reference for all things related to section 8 company formation in 2025.
