What is Registration of Section 8 Company
A Section 8 Company is a non-profit organization incorporated under the Companies Act, 2013 for promoting charitable, educational, social, environmental, or similar objectives. Unlike trusts or societies, a Section 8 Company has a separate legal identity and operates with structured governance under the Ministry of Corporate Affairs (MCA). Any income generated must be applied solely toward the promotion of its stated objectives.
Section 8 Companies may be formed for the promotion of:
- Commerce
- Art and Culture
- Science and Research
- Education
- Social Welfare
- Environmental Protection
- Charitable Activities
- Sports Development
- Religious or Public Welfare Activities
In layman, a Section 8 company must promote public welfare and the income generated by the company can only be used to support the stated public cause(s) only.
What are the Consequences in case of Non Compliance is done by Section 8 Companies?
Every Section 8 company needs to follow the compliance levied by Income tax authorities and Registrar of Companies. If the company fails to satisfy the requisite compliance, Non compliance with statutory provisions under the Companies Act, Income Tax Act, or other applicable laws may result in penalties, cancellation of registration, or revocation of Section 8 license.
Registration under Income Tax Act (12AB & 80G)
Section 8 Companies seeking income tax exemption must obtain registration under Section 12AB of the Income Tax Act. Additionally, approval under Section 80G allows donors to claim eligible tax deductions. Registrations are granted for a specified period and require periodic renewal as per current regulations.
Annual Compliances for Section 8 Company (2026)
- Minimum two Board Meetings in a year
- Maintenance of proper Books of Accounts
- Statutory Audit by Chartered Accountant
- Filing of Financial Statements (Form AOC-4)
- Filing of Annual Return (Form MGT-7)
- Income Tax Return Filing
- Renewal of 12AB and 80G registration (if applicable)
- CSR reporting compliance (if eligible)
Benefits of Section 8 Company
Separate Legal Identity
Operates as a corporate body with limited liability.
Higher Credibility
Recognized structure under MCA, preferred by donors and CSR contributors.
Tax Exemptions
Eligible for income tax exemption under Section 12AB (subject to approval).
Donor Benefits
Eligible for 80G certification enabling tax deductions to donors.
No Minimum Capital Requirement
No prescribed minimum capital for incorporation.
Structured Governance
Clear compliance framework under Companies Act, 2013.
Key Conditions for Section 8 Company Registration
- Must be formed for non-profit objectives
- Profits cannot be distributed to members
- Must apply income solely toward stated objectives
- Can be incorporated as company limited by shares or by guarantee
- License under Section 8 must be obtained from MCA
Documents Required for Section 8 Company Registration
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Identity & Address Proof of Directors and Subscribers
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Registered Office Address Proof (Utility Bill not older than 2 months)
- NOC from property owner (if rented)
- Declaration by Directors and Subscribers
- Estimated Income & Expenditure Statement (if required)
Section 8 Company Registration Process (2026)
- Obtain Digital Signature Certificate (DSC)
- Apply for Name Approval via SPICe+
- Apply for Section 8 License through SPICe+ (INC-12 integrated process)
- File MOA and AOA
- Obtain Certificate of Incorporation from MCA
- Apply for PAN and TAN
- Apply for 12AB and 80G registration (if required)
For professional assistance with Section 8 Company registration and compliance, consult experienced advisors to ensure proper incorporation and statutory adherence.
