A Section 8 Company is a legal entity recognized by the Ministry of Corporate Affairs (MCA) as a non-profit organization. Although it functions like a regular company with a structure of directors and shareholders, it enjoys several exemptions and tax benefits due to its non-profit motive.

Key characteristics:

• No dividend distribution allowed to members

• Profits must be applied solely for promoting the organization’s objectives

• Requires a Central Government license (issued by ROC)

1. Legal Recognition
   A Section 8 Company gains credibility and trust with donors, government agencies, and stakeholders due to its structured governance.

2. Tax Exemptions
   Eligible for income tax exemptions under Section 12A and donations received may qualify for deductions under Section 80G.

3. Separate Legal Identity
   The company has its own legal status, allowing it to enter contracts, own property, and sue or be sued.

4. Limited Liability
   Liability of members is limited to their share capital or guarantee.

5. No Minimum Capital Requirement
   Unlike private companies, there is no mandatory minimum capital to start a Section 8 Company.

• To register a Section 8 Company in India, the following criteria must be fulfilled:

  • At least 2 directors for a private limited structure or 3 for a public limited structure

  • At least one director must be a resident of India

  • The company must promote charitable or not-for-profit objectives

  • Profits must be applied toward the stated objectives only

• 1. Obtain Digital Signature (DSC)
     Required for signing electronic documents during the registration process.

  2. Director Identification Number (DIN)
     DIN is a unique identification number required for all directors.

  3. Name Approval via RUN Form
     Choose a name that reflects the company’s objectives; it must be approved by the ROC.

  4. Apply for Section 8 License
     Submit the Form INC-12 along with MOA, AOA, and declarations to get approval.

  5. Incorporation Filing
     File SPICe+ forms with MCA including company and director details.

  6. Certificate of Incorporation
     Once verified and approved, the Registrar of Companies issues a Certificate of Incorporation along with the Section 8 license.

• PAN and Aadhaar of directors
• Passport-size photographs
• Address proof and utility bills for place of business
• Digital Signature Certificate (DSC) of directors
• Director Identification Number (DIN)
• Memorandum of Association (MOA) and Articles of Association (AOA)
• Declaration of objectives and sources of income
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