Practice Areas · StartUp · Business Formation · Incorporation · Section 8 company
Section 8 (Non-Profit) Company Registration
The most credible non-profit structure — a company formed to promote charitable objects.
What a Section 8 company is
A Section 8 company is a non-profit formed to promote charitable objects — commerce, art, science, education, sports, research, social welfare, religion, charity, or protection of the environment. Its profits and income must be applied to its objects and cannot be distributed as dividends to members.
It is registered under Section 8 of the Companies Act, 2013 and requires a licence from the Central Government (through the Registrar). It is the company-form alternative to a trust or society, with stronger governance and wider recognition.
It needs at least two directors and two members for a private Section 8 company (three directors for a public one), with at least one director resident in India.
Why founders choose it
Most credible non-profit form
Regulated, transparent, and widely recognised by donors and authorities.
Limited liability
Members' liability is limited; the company is a separate legal entity with perpetual succession.
Tax exemptions
Eligible for 12A and 80G registration with the Income-tax department.
Preferred for CSR & grants
Often the structure of choice for receiving CSR funding and institutional grants.
No minimum capital
Can be formed without a prescribed minimum capital.
Flexible naming
Can use names like Foundation, Association, or Council, without the “Limited” suffix.
What registration requires
Directors & members
- Minimum 2 directors and 2 members for a private Section 8 company (3 directors for a public one)
- At least one director resident in India
- A charitable object; income and profits applied only to that object, with no dividend to members
- Each director needs a DIN and a Digital Signature Certificate (DSC)
Licence & name
- A Section 8 licence from the Registrar (on behalf of the Central Government)
- A name reflecting the charitable purpose — Foundation, Forum, Association, Council, and similar are permitted
- A registered office address in India, with valid proof
Documents you'll need
- PAN and Aadhaar of all directors and members
- Identity and address proof of directors and members
- Passport-size photographs
- A statement of proposed objects, and projected income and expenditure for the first few years
- Registered office proof — rent agreement and NOC, or ownership proof, with a recent utility bill
- Digital Signature Certificate (DSC) for the proposed directors
How registration works
- 01
Obtain Digital Signature Certificates
DSCs are issued for the proposed directors.
- 02
Reserve the company name
Apply for name approval reflecting the charitable purpose.
- 03
Apply for the Section 8 licence and file SPICe+
File the incorporation forms with the MOA (INC-13) and AOA, the projected statements, and the required declarations.
- 04
Licence and Certificate of Incorporation
The Registrar grants the Section 8 licence and issues the Certificate of Incorporation, with PAN and TAN.
- 05
Tax and post-incorporation set-up
Apply for 12A and 80G registration, FCRA if foreign donations are expected, open the bank account, and start compliance.
Key characteristics
Non-profit
Income is applied to the objects; no dividends are paid to members.
Central Government licence
A Section 8 licence is required before incorporation.
Limited liability
Members' exposure is limited; it is a separate legal entity.
Tax-exempt with 12A/80G
Registration with the Income-tax department gives exemption and donor deduction.
Statutory audit
Accounts must be audited every year.
FCRA for foreign funds
FCRA registration is needed to receive foreign contributions.
Why work with PBT
PBT sets up your Section 8 company with the right objects and tax registrations, and keeps it compliant.
- We advise on a Section 8 company versus a trust or society for your purpose
- End-to-end registration, including the Section 8 licence and MOA/AOA with proper charitable objects
- 12A and 80G applications with the Income-tax department, and FCRA where foreign donations are expected
- PAN, TAN, and post-incorporation set-up
- Ongoing ROC, income-tax, and donor-compliance support
- Scope, deliverables, and fees agreed in writing up front
Frequently asked questions
What is a Section 8 company?
A non-profit company formed for charitable or not-for-profit objects, whose income is applied to those objects and not distributed to members as dividends.
How is it better than a trust or society?
It offers stronger governance, limited liability, and nationwide recognition, and is often preferred by donors and for CSR funding.
Can it earn a surplus?
Yes, it can generate surplus, but the surplus must be applied to its objects — it cannot be distributed to members.
What tax registrations does it need?
12A and 80G with the Income-tax department for exemption and donor deduction, and FCRA if it will receive foreign contributions.
How many members and directors are required?
Two members and two directors for a private Section 8 company; a public Section 8 company needs three directors.
How long does it take?
Typically about 3–4 weeks, as the Section 8 licence and incorporation are processed together, subject to MCA approval. The 12A and 80G tax registrations are obtained separately and take additional time.
Register your Section 8 (non-profit) company
Tell us about your charitable objects, and we'll handle the licence, incorporation, and the 12A/80G registrations end to end.
Send an enquiryThis page describes the nature of the firm's services and is not a solicitation or legal advice. Thresholds, timelines, and applicable registrations depend on your specific facts; engagement terms and fees are agreed in writing per assignment.