Section 8 Company Registration
Establish Your Non-Profit Organization with Legal Compliance
Tax Pal Solutions helps you register your NGO or non-profit as a Section 8 Company online in India. Our expert guidance ensures complete MCA compliance, smooth incorporation, and access to tax exemptions under Sections 12AB and 80G.
Why Choose Section 8 Company Registration?
A Section 8 Company is a non-profit entity under the Companies Act, 2013, designed to promote charitable activities such as education, research, social welfare, arts, science, sports, and environmental protection. Profits are reinvested into the company’s objectives, not distributed to members.
Key Benefits:
- Build a legal and credible organization
- Avail tax exemptions under Sections 12AB & 80G
- Access government grants, CSR funding, and donations
- Perpetual existence ensures long-term operations
- Limited liability for members
Features of a Section 8 Company
- Non-Profit Focus: Operates exclusively for charitable purposes.
- Distinct Legal Identity: Can own property, enter contracts, and sue or be sued.
- Government License: Operates under MCA license, enhancing credibility.
- Profit Reinvestment: All profits are reinvested into organizational objectives.
- No “Ltd.” or “Pvt. Ltd.” in name, highlighting its non-profit nature.
- Tax Benefits: Eligible for Section 12AB and 80G exemptions.
Eligibility Criteria
| Requirement | Details |
|---|---|
| Directors | Minimum 2 directors (at least 1 resident of India) |
| Members | Minimum 2 subscribers/members |
| Company Name | Unique and aligned with non-profit objectives |
| Objectives | Clearly stated charitable or social purpose |
| Registered Office | Valid official address in India |
| Prerequisites | DSC, DIN, KYC documents of directors |
Mandatory Forms
| Form Name | Purpose | Key Details |
|---|---|---|
| SPICe+ Part A | Name reservation | Reserve a unique company name reflecting charitable objectives |
| SPICe+ Part B | Incorporation | Main form for incorporation, DIN allotment, PAN & TAN |
| e-MoA (INC-33) | Memorandum of Association | Outlines charitable objectives |
| e-AoA (INC-34) | Articles of Association | Internal governance rules |
| AGILE-PRO-S (INC-35) | Linked Registrations | GST, EPFO, ESIC, and bank account registration |
| INC-9 | Declaration | Declaration by subscribers/directors confirming compliance |
Required Documents
From Directors/Members: PAN, identity and address proof, passport-size photos
Registered Office: Address proof, NOC from property owner, rent agreement (if applicable)
Other Documents: Digital Signature Certificate (DSC), drafted MOA & AOA
Step-by-Step Registration Process
- Obtain DSC & DIN – Required for directors to sign e-forms.
- Name Reservation – Reserve company name via SPICe+ Part A.
- Draft MOA & AOA – Prepare documents defining objectives and governance.
- File SPICe+ Part B – Submit incorporation form and linked registrations.
- Submit Linked Forms – AGILE-PRO-S form for GST, EPFO, ESIC, bank account.
- ROC Scrutiny – Registrar reviews application and approves license (Form INC-16).
- Certificate Issuance – ROC issues Certificate of Incorporation (Form INC-11).
Post-Incorporation Compliance
| Compliance Area | Requirement | Frequency | Forms/Remarks |
|---|---|---|---|
| First Board Meeting | Disclose director interests & declare non-disqualification | Within 30 days | MBP-1, DIR-8 |
| Appointment of Auditor | Appoint statutory auditor | Within 30 days | ADT-1 |
| Registered Office | File office address | Within 30 days | INC-22 |
| Commencement of Business | Declaration | Within 180 days | INC-20A |
| Board Meetings | Hold at least 2 meetings/year | Biannual | Minutes of Meetings |
| Annual Return | File MGT-7 | Within 60 days of AGM | Form MGT-7 |
| Financial Statements | File audited accounts | Within 30 days of AGM | Form AOC-4 |
| Income Tax Return | File ITR | Annually (Sept 30) | Applicable ITR Form |
Section 8 Company Registration Fees
| Fee Type | Description | Estimated Cost (INR) |
|---|---|---|
| Government Fees | SPICe+, MoA, AoA filings | ₹500 – ₹8,000 |
| DSC & DIN | Digital signatures for directors | ₹1,000 – ₹3,000 per director |
| Stamp Duty | Mostly exempted | ₹100 – ₹2,500 |
| Professional Fees | Consultant/CA/CS support | ₹10,000 – ₹25,000 |
| PAN & TAN | Mandatory post-registration | ₹150 – ₹300 |
| Bank Account Assistance | Optional | ₹500 – ₹1,000 |
Timeline, Validity & Renewal
- Registration Timeline: 10–15 working days
- Validity: Lifetime (perpetual)
- Renewal: Not required
Penalties for Non-Compliance
- Late Filing: ₹100/day per form, max ₹10 Lakh (AOC-4), ₹5 Lakh (MGT-7)
- License Revocation: If company violates objectives or law (Section 8(6))
- Other Penalties: Fines ₹10 Lakh – ₹1 Crore; imprisonment up to 3 years for officers
Tax Registrations: Section 12AB & 80G
Section 12AB: Tax exemption on income; mandatory for grants and donations.
Section 80G: Tax deductions for donors; encourages higher contributions.
Documents Required for 10A/10AB:
- Certificate of Incorporation
- MOA & AOA
- PAN of the company
- Director KYC (PAN, Aadhaar)
- Activity notes & financial statements
Comparison: Trust, Society & Section 8 Company
| Feature | Trust | Society | Section 8 Company |
|---|---|---|---|
| Governing Law | Indian Trusts Act | Societies Registration Act | Companies Act, 2013 |
| Registration Authority | Sub-Registrar | Registrar of Societies | ROC, MCA |
| Minimum Members | 2 Trustees | 7 Members | 2 Members/Directors |
| Legal Document | Trust Deed | MoA & Rules | MoA & AoA |
| Credibility | Moderate | Moderate-High | Very High |
| Compliance | Minimal | Moderate | High |
| Ease of Formation | Easy | Moderate | Complex |
| Best Suited For | Small charities | Membership-based groups | Large-scale NGOs & CSR-funded initiatives |
Certification
