What is a Section 8 Company Firm?

A Section 8 Company Firm is a non-profit organization registered under Section 8 of the Companies Act, 2013. It is formed with the objective of promoting charitable activities, such as education, art, science, culture, sports, environment protection, social welfare, or any other object of public utility.

Unlike other companies, a Section 8 Company does not distribute profits to its members. All profits or income are used for promoting the company’s main objectives.

If you’re planning to launch an NGO, trust, or non-profit foundation, setting up a Section 8 Company Firm is the most credible and recognized structure in India.

 

Key Features of Section 8 Company Firm

• Registered under the Companies Act, 2013

• Works for non-profit or charitable purposes

• Enjoys tax exemptions under various sections of the Income Tax Act

• No minimum capital requirement

• Must apply profits only to promote its objectives

• No dividend can be distributed to members

• Requires Central Government approval via MCA for incorporation

 

Documents Required for Section 8 Company Registration

Documents from All Directors & Promoters:

1. PAN Card (mandatory)

2. Aadhar Card / Passport / Voter ID / Driving License

3. Passport-size photograph

4. Email ID and mobile number

5. Digital Signature Certificate (DSC)

6. Director Identification Number (DIN)

Documents for Section 8 Company Firm:

7. Address proof of the registered office (electricity/water bill, not older than 2 months)

8. Rent Agreement + NOC from owner (if rented premises)

9. Memorandum of Association (MOA)

10. Articles of Association (AOA)

11. Declaration by subscribers and directors (Form INC-9)

12. Declaration in Form INC-14 by a practicing CA/CS/CMA

13. Estimated Statement of Income & Expenditure (3 years)

14. Project report detailing activities and objectives

15. Board resolution (if applicable)

 

Step-by-Step Process of Section 8 Company Registration

1. Obtain Digital Signature Certificate (DSC)

• Required for all proposed directors

• Time: 1–2 Days

2. Get Director Identification Number (DIN)

• Mandatory for directors

• Time: 1–2 Days

3. Reserve Company Name via SPICe+ Part A

• Name should reflect the NGO’s vision

• Time: 2–3 Days

4. File SPICe+ Part B & INC-32, INC-33 (MOA), INC-34 (AOA)

• Attach declarations and objectives

• Includes application for PAN and TAN

5. Apply for Section 8 License (Form INC-12)

• With MCA and Central Government approval

• Time: 5–10 Days

6. Certificate of Incorporation (COI)

• Issued by RoC with license number

• Time: 2–3 Days post-verification

 

Time Involved in Section 8 Company Firm Registration

Step	Estimated Time
DSC & DIN	2–3 Days
Name Approval (SPICe+)	2–3 Days
Filing of Forms & INC-12	5–10 Days
MCA Processing & COI	3–5 Days

Total Duration: 10 to 20 Working Days

 

Benefits of Registering a Section 8 Company Firm

• Recognized by government and global donors

• Exemptions under Income Tax Act (12A, 80G)

• No minimum capital needed

• Separate legal entity with limited liability

• Higher credibility than Trust or Society

• Can receive foreign donations (FCRA) with approval

 

15+ FAQs on Section 8 Company Firm

1. What is a Section 8 Company Firm?

A Section 8 Company Firm is a non-profit company formed under the Companies Act to promote charitable and social objectives.

2. Can a Section 8 Company make profits?

Yes, it can earn profits but must use them only for promoting its non-profit objectives.

3. Can Section 8 Company Firm pay salary to employees?

Yes, reasonable salaries can be paid to directors, employees, and workers.

4. Is there a minimum capital requirement?

No, there is no minimum capital needed for Section 8 Company registration.

5. Is registration with the Registrar of Companies (RoC) mandatory?

Yes, registration with RoC and a license from MCA is compulsory.

6. Can foreign nationals be directors in Section 8 Company?

Yes, foreign nationals or NRIs can be directors, subject to compliance with FEMA and FDI laws.

7. What are the tax benefits of Section 8 Company?

Tax exemptions can be availed under Section 12A and 80G after registration with Income Tax Department.

8. Can a Section 8 Company accept donations?

Yes, it can accept donations and grants from individuals, corporates, and even foreign entities (with FCRA approval).

9. Can Section 8 Company be converted into another entity?

Conversion is not allowed unless directed by the government.

10. What is the validity of Section 8 License?

The license is valid for lifetime, unless revoked by MCA.

11. Can Section 8 Company open a bank account?

Yes, after obtaining Certificate of Incorporation, PAN, and address proof.

12. How many directors are required for Section 8 Company?

Minimum 2 directors for Private Limited Section 8, and 3 for Public Limited Section 8 Company.

13. Can Section 8 Company receive foreign funds?

Yes, after FCRA registration, it can receive foreign donations.

14. Is audit mandatory for Section 8 Company Firm?

Yes, annual statutory audit by a Chartered Accountant is mandatory.

15. Can Section 8 Company own property?

Yes, as a separate legal entity, it can own land and assets.

16. What suffix is used for a Section 8 Company name?

Section 8 Companies do not use "Limited" or "Private Limited" suffixes.

 

Conclusion: Set Up Your Section 8 Company Firm Today

A Section 8 Company Firm is the best legal structure if you're passionate about creating social impact and seeking funding from government bodies, donors, or CSR partners. With legal recognition, tax benefits, and trust-building capabilities, Section 8 Companies stand out as the most professional form of NGO or non-profit organization in India.

✅ Get expert help today for end-to-end Section 8 Company registration, licensing, and compliance.

📞 Contact us now to begin your Section 8 Company Firm Registration journey with expert legal and documentation assistance.