Section 8 Company
Registration in India

A Section 8 Company is a non-profit organization registered under Section 8 of the Companies Act, 2013. It is formed for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any other useful objective. Profits earned are applied solely towards promoting its objectives and cannot be distributed as dividends to members.

Any individual, HUF, or body corporate can register a Section 8 Company. It is ideal for NGOs, charitable trusts, social enterprises, educational institutions, and organizations working for public welfare. You need a minimum of 2 directors and 2 shareholders (members) to incorporate. At least one director must be an Indian resident.

Section 8 Companies can apply for two powerful tax registrations: 12A registration exempts the company's income from tax, meaning your organization pays zero income tax. 80G registration allows donors to claim tax deductions on their donations to your organization, which significantly encourages charitable contributions. Both registrations are available from the Income Tax Department and we provide complete advisory and filing assistance.

A Section 8 Company requires a minimum of 2 directors and 2 shareholders/members. The same person can be both a director and member. At least one director must be an Indian resident (stayed in India for at least 182 days in the previous year). There is no minimum capital requirement, and the company does not need to add "Limited" or "Private Limited" to its name.

A Section 8 Company can earn revenue through its activities, but all profits must be used solely for promoting its stated charitable or social objectives. It cannot distribute profits or dividends to its members. The company can charge fees for services, receive donations, apply for grants, and earn from investments — as long as the income is applied towards its non-profit objectives.

A Section 8 Company must comply with: annual ROC filings (AOC-4 and MGT-7), appointment of a Statutory Auditor (Practising CA), Director e-KYC annually, board meetings (minimum 2 per year), AGM (Annual General Meeting), and Income Tax return filing. If registered under 12A/80G, additional compliance with Income Tax provisions is required. The compliance cost is generally lower than regular companies.