Section 8 Company

Overview

A Section 8 Company is a non-profit registered under the Companies Act, 2013 to promote charitable objects such as education, art, science, sport, social welfare or environmental protection. It applies its profits only to its objects and cannot pay dividends, and it is the most credible structure for a serious NGO because it carries company-grade governance and transparency.

Objective

To run a non-profit with the credibility, governance and funding-readiness of a company structure.

Characteristics

• Registered as a company but for not-for-profit objects
• Profits reinvested into the objects; no dividends to members
• Enjoys the governance and transparency of a company
• Can be incorporated without the word 'Limited' in its name

Eligibility

• At least 2 directors (for a private structure) or 3 (for a public structure)
• A clear charitable object under Section 8
• No minimum capital requirement
• A registered office address in India

Governing law

• Companies Act, 2013 (Section 8)
• Companies (Incorporation) Rules, 2014

The process

1. 1
   DSC & DIN

   We obtain Digital Signatures and Director Identification Numbers.

2. 2
   Name reservation

   We reserve a name reflecting the charitable object.

3. 3
   Section 8 licence

   We apply for the Section 8 licence (Form INC-12) with the object clause and projected accounts.

4. 4
   Incorporation

   We file SPICe+ and obtain the Certificate of Incorporation.

Documents required

• PAN, identity and address proof of directors
• Registered office proof with a no-objection letter
• A statement of the charitable objects and projected income and expenditure
• MoA and AoA drafted for the object

Benefits

• The most credible NGO structure for donors and grants
• Eligible for 12A, 80G and CSR-1 registrations
• Separate legal entity with limited liability
• No minimum capital requirement

What you get

Section 8 licence, Certificate of Incorporation (with CIN), PAN and TAN.

Frequently asked questions