Section 8 Company Registration: Starting an NGO in India

Publishing Date: 28 September, 2026

Section 8 Company Registration: Starting an NGO in India

If you want to start a non-profit organisation for education, healthcare, social welfare, art, sports or environmental causes, a Section 8 company is one of the most credible structures available. It is registered under the Companies Act and is well regarded by donors, CSR funders and government bodies.

What is a Section 8 company?

It is a company formed to promote charitable objects, which applies its profits only to those objects and does not pay dividends to its members. It is licensed by the central government at the time of incorporation.

Section 8 company vs trust vs society

PointSection 8 CompanyTrustSociety
LawCompanies Act, 2013State trust lawsSocieties Registration Act
RegulatorMCACharity commissioner / registrarRegistrar of Societies
Credibility with donorsHighModerateModerate
ComplianceHigherLowerModerate

Benefits

  • No minimum capital requirement.
  • Strong governance framework, which builds donor confidence.
  • Eligible to apply for 12A and 80G registration for tax benefits.
  • Can receive CSR funds once registered as required.
  • Exemption from using “Limited” in the name.

Registration process

  1. DSC and DIN for the directors.
  2. Name reservation (names often end with Foundation, Association, Council and so on).
  3. Prepare the MOA and AOA with charitable objects, and a projected income and expenditure statement.
  4. File SPICe+ with the licence application; the licence and incorporation are granted together.

After incorporation

  • Apply for 12A and 80G registration with the Income Tax Department.
  • Register on the NGO Darpan portal if you plan to apply for government grants.
  • Follow annual ROC filings, audit and income tax compliance.

Start your non-profit with our Section 8 company registration service. You can also explore trust and society registration.

Why Choose Vaidam Consultancy?

Our team of chartered accountants, company secretaries and legal professionals handles the paperwork so you can focus on growing your business.

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Call or WhatsApp us at +91 78369 69141 or email vaidamconsultancyllp@gmail.com.

Frequently Asked Questions

Q1. Can a Section 8 company earn a profit?

Yes, but profits must be used only for its objects and cannot be distributed as dividends.

Q2. Is there a minimum capital for a Section 8 company?

No. There is no minimum capital requirement.

Q3. Can directors of a Section 8 company be paid?

Reasonable remuneration for services is allowed within the rules; profit distribution is not.

Q4. Do donors get tax benefits?

Yes, if the company holds a valid 80G registration.

Author
CS Harshita Jhawar
Author

CS Harshita Jhawar is a Company Secretary and content marketer at www.vaidamconsultancy.com, known for blending legal expertise with engaging storytelling. Passionate about compliance and corporate law, she simplifies complex regulations for her readers. Off-duty, she enjoys traveling, photography, and thought-provoking reads—driven by curiosity and a love for clarity.

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