How to Apply for a Section 8 Company in India
A Section 8 company is one of the most credible ways to run a non-profit in India. Here's exactly what it is, why founders choose it over a trust or society, and the step-by-step process to register one in 2026.
What is a Section 8 company?
A Section 8 company is a non-profit organisation registered under Section 8 of the Companies Act, 2013 (the successor to Section 25 of the old 1956 Act). It is formed to promote objects such as commerce, art, science, sport, education, research, social welfare, religion, charity or protection of the environment.
What makes it distinct is the deal at its core: the company must apply all of its profits and income solely towards its stated objects, and it is prohibited from paying any dividend to its members. In return, the Central Government grants it a special licence and a set of concessions. In effect, you get the governance and credibility of a company wrapped around a purely charitable purpose.
Good to know: A Section 8 company can drop "Private Limited" or "Limited" from its name. That's why you see names like Aasha Foundation or Saksham Council rather than "…Pvt Ltd".
Why founders choose it
Trusts and societies are simpler to set up, but a growing number of founders pick Section 8 when they intend to raise institutional money or operate across states. The reasons usually come down to credibility and access to funding:
- Separate legal entity & limited liability — the organisation can own assets, sign contracts and sue in its own name, and members aren't personally liable for its debts.
- Highest credibility — central-government licensing and mandatory annual filings signal transparency to donors, CSR funders and grant-making institutions.
- Funding-ready — it is well placed for 12A and 80G tax registrations, CSR-1 for corporate funding, and FCRA for foreign contributions.
- No minimum capital — there is no prescribed minimum paid-up capital, so you can start lean.
- Structured governance — a defined board, statutory registers and audited accounts make succession and scaling far cleaner.
Section 8 vs Trust vs Society
Choosing the right vehicle matters — it's hard to change later. Here's how the three common non-profit structures compare at a glance:
| Feature | Section 8 Company | Trust | Society |
|---|---|---|---|
| Governing law | Companies Act, 2013 | Indian Trusts Act, 1882 / state laws | Societies Registration Act, 1860 |
| Registering authority | ROC / MCA (Central Govt.) | Sub-Registrar of the state | Registrar of Societies |
| Minimum members | 2 directors / 2 shareholders | 2 trustees | 7 members |
| Credibility for funding | Highest | Moderate | Moderate |
| Ongoing compliance | Higher (annual ROC filings, audit) | Lower | Moderate (annual filings) |
| Best suited for | Pan-India NGOs chasing CSR & grants | Family or asset-based charity | Membership / community work |
Eligibility & requirements
Before you file, make sure your founding team and object clear these basics:
- Directors: a minimum of two directors for a private Section 8 company, or three for a public one. At least one director must be a resident of India (present in India for 182+ days in the previous year).
- Members: at least two shareholders — they can be the same people as the directors.
- Charitable object: a clearly worded non-profit purpose, with a genuine intention not to distribute dividends.
- Registered office: a valid address in India for official correspondence.
- Digital credentials: a Digital Signature Certificate (DSC) for each proposed director, and a Director Identification Number (DIN) — now allotted within the incorporation form itself.
Documents you'll need
Keeping these ready up front is the single biggest thing that speeds up approval:
For each director & member
- PAN card and Aadhaar
- Identity proof — passport, voter ID or driving licence
- Address proof — bank statement or utility bill, ideally not older than two months
- Recent passport-size photograph
For the registered office
- Latest electricity / utility bill of the premises
- Rent agreement, if the office is rented
- No-Objection Certificate (NOC) from the property owner
For the company
- Draft Memorandum of Association (MOA) and Articles of Association (AOA) stating the charitable objects
- A projected statement of income & expenditure for the first three years
- Declarations by a practising professional and by each director, in the prescribed forms
Step-by-step registration process
Today the entire incorporation runs through the MCA's integrated SPICe+ form. Here is the journey from idea to certificate:
Get Digital Signature Certificates
Obtain a Class-3 DSC for every proposed director — all forms are filed electronically and must be digitally signed.
Reserve the company name
Through SPICe+ Part A, propose a name that reflects your object and includes a word like Foundation, Forum, Council, Association or Federation — and skip "Pvt Ltd"/"Ltd".
Draft the MOA & AOA
Prepare the charitable object clauses and the non-profit provisions in the Memorandum and Articles, ready to attach as the e-MOA and e-AOA.
File SPICe+ Part B and linked forms
Submit SPICe+ along with the e-MOA, e-AOA, the AGILE-PRO-S form (for PAN, TAN, GST, EPFO, ESIC and a bank account) and the required declarations. DIN is allotted for up to three directors within this filing.
Licence & Certificate of Incorporation
The Central Government examines the application and, if satisfied, grants the Section 8 licence and issues the Certificate of Incorporation with your CIN — along with PAN and TAN.
Set up for funding
Open the company's bank account, then move on to 12A & 80G, NITI Aayog (Darpan), CSR-1 and — if you'll receive foreign donations — FCRA.
A note on Form INC-12: for brand-new companies, the licence is now granted through the integrated SPICe+ form itself. A separate INC-12 application mainly applies to existing entities converting into a Section 8 company.
Timeline & cost
With documents in hand and a clean name, most Section 8 registrations are completed in around 10–20 working days. The biggest variables are name approval and how quickly directors return signed paperwork.
On cost, Section 8 companies enjoy concessional government filing fees — the bulk of what you pay goes towards DSCs, name approval, state stamp duty and professional fees. Exact figures vary by state and the number of directors, so it's worth getting a written quote before you start.
Quick takeaways
- Section 8 is the most credible non-profit structure for raising CSR and institutional funds.
- You need at least two directors, one resident in India, and no minimum capital.
- Everything is filed via SPICe+; expect roughly 10–20 working days.
- Plan 12A, 80G and CSR-1 right after incorporation to unlock funding.
Want this handled for you?
Micro Advisor registers Section 8 companies end-to-end — from name approval to your final certificate, plus 12A, 80G and CSR-1. Your first consultation is on us.
After incorporation: staying compliant
The licence comes with responsibilities. To keep it in good standing, a Section 8 company is generally expected to:
- Hold board meetings and an annual general meeting, and maintain statutory registers.
- File annual financial statements and returns (such as AOC-4 and MGT-7) with the ROC.
- Maintain proper books of account and have them audited each year.
- File its income tax return and meet the conditions attached to 12A and 80G.
- Comply with FCRA rules if it receives foreign contributions.
Frequently asked questions
Can a Section 8 company earn a profit?
Yes. It can generate a surplus from its activities, but every rupee must be ploughed back into its objects. It cannot distribute profits as dividends to its members.
How many directors and members are required?
A minimum of two directors and two shareholders for a private Section 8 company (three directors for a public one). At least one director must be resident in India.
Is there a minimum capital requirement?
No. There is no prescribed minimum paid-up capital, so you can start with whatever suits your plans.
Can foreign nationals be directors?
Yes, foreign nationals and NRIs can be directors, provided at least one director is resident in India. To receive foreign donations, the company will also need FCRA registration.
How long does registration take?
Typically around 10–20 working days once documents are ready, depending mainly on name approval.
Ready to register your NGO?
Whether you're starting fresh or need help with 12A, 80G, CSR-1 or FCRA — we handle everything end-to-end. Your first consultation is free.
This article is general information about Section 8 company registration in India and is not legal or tax advice. Rules and forms change — please confirm current requirements with a qualified professional or get in touch with Micro Advisor before you file.