For social-purpose organisations with charitable objects and tax exemptions.
MoA & AoA drafted with charitable objects
Section 8 license from Central Government
12A and 80G registration assistance
PAN, TAN, and bank account assistance
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About Section 8 Company
A Section 8 Company is the corporate form preferred by Indian non-profits, foundations, and social-impact organisations. Section 8 of the Companies Act, 2013 allows a company to be incorporated for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection, or similar objects — with the condition that profits are applied solely toward the objects, not distributed to members.
Section 8 companies are eligible for tax exemptions under sections 12A and 80G of the Income Tax Act once those registrations are obtained separately.
Key Features
Charitable Objects — Profits must be applied to social-purpose objects, not distributed.
Tax Benefits — 12A and 80G eligibility provides exemption and donor-side tax benefits.
Credibility — Section 8 status signals legitimacy to donors, grant-makers, and CSR partners.
Limited Liability — Members’ liability is limited; the entity is separate from its members.
Frequently asked
Common questions about Section 8 Company.
A Section 8 Company is a non-profit organization registered under the Companies Act, formed for charitable, educational, religious, or social objectives.
Its main purpose is to promote charity, education, social welfare, environment protection, sports, or other non-profit activities.
Yes, it can earn profit, but profits must be reinvested for charitable objectives and cannot be distributed as dividends.
It is registered through MCA by applying for DSC, name approval, Section 8 license, and incorporation forms.
Any individual or group of individuals (minimum 2 directors) can start a Section 8 Company.
Minimum 2 directors are required.
PAN, Aadhaar, passport size photo, address proof, office address proof, utility bill, and ID proofs of directors.
Yes, Digital Signature Certificate is mandatory.
Yes, but residential or rented premises can also be used with valid proof.
It is a special approval issued by the Central Government allowing a company to operate as a non-profit organization.
Yes, registration is fully online through MCA portal.
Annual ROC filing, financial statements, income tax return, board meetings, and audit compliance.
Yes, statutory audit is mandatory regardless of turnover.
No, profits must be used only for charitable objectives.
Heavy penalties, legal action, and possible strike-off by MCA.
Yes, it may apply for 12A and 80G registration for tax benefits.
Not fully tax free, but it can get exemptions under Income Tax Act if registered under 12A/80G.
Yes, donors can claim tax deduction under Section 80G.
Yes, but it must comply with FCRA regulations.
Yes, eligible Section 8 companies can receive grants and CSR funding.
Yes, conversion is possible but requires government approval and compliance procedures.
Yes, reasonable salary can be paid for services rendered.
Yes, but only to support its charitable objectives.
Excess profit must be reinvested in charitable activities, not distributed.
Yes, it can take loans from banks and financial institutions.
Yes, it can purchase and hold property in its name.
Yes, subject to legal compliance and approval.
Yes, many Section 8 companies are eligible for corporate CSR funding.
No, Section 8 companies cannot issue shares or distribute dividends.
License can be revoked and company may be struck off.
Yes, foreign nationals can be directors subject to compliance.
Yes, but must comply with FEMA and FCRA regulations.
Yes, it can apply for dormant status if not operational.
Yes, if it violates conditions of 12A/80G registration.
No, political activities are strictly prohibited.
Yes, mergers are allowed with proper legal approval.
Foreign funding permissions may be cancelled or restricted.
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