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A Section 8 Company — named after Section 8 of the Companies Act, 2013 — is a non-profit company incorporated for the promotion of charitable purposes such as education, sports, science, arts, religion, social welfare, environment protection, or any other such object. It is the most preferred structure for NGOs seeking maximum credibility, government grants, and CSR funding in India.
- Section 8 Company — Governed by Companies Act. Highest credibility. Preferred by government and CSR donors. Regulated by MCA.
- Trust — Governed by Indian Trusts Act/state laws. Simple to form. Best for family/private charities.
- Society — Governed by Societies Registration Act. Democratic structure. Good for membership-based organisations.
Key Advantages of Section 8 Company
- ✅ No minimum capital requirement
- ✅ No stamp duty on registration
- ✅ Tax exemptions on income if registered under 12A and 80G
- ✅ Donors get tax deduction under Section 80G
- ✅ Eligible for FCRA registration to receive foreign contributions
- ✅ Can use the words "Foundation", "Institute", "Academy" in its name
- ✅ Highest credibility for receiving government grants and CSR funds
Documents Required
- 📋 PAN and Aadhaar of all proposed directors (minimum 2)
- 📋 Passport-size photos of all directors
- 📋 Address proof of registered office (electricity bill + NOC from owner)
- 📋 Declaration of objects (what the company aims to achieve)
- 📋 Estimated income and expenditure for next 3 years
- 📋 DSC (Digital Signature Certificate) for all directors
Registration Process
Class 3 DSC required for all proposed directors before any MCA filing.
Apply for name approval on the MCA portal. The name must reflect the charitable objects of the company.
File INC-12 with MCA along with MoA, AoA, and estimated income/expenditure statement. The Central Government grants a licence under Section 8.
After licence grant, file SPICe+ (INC-32) for actual incorporation along with Section 8 Licence number. Certificate of Incorporation is issued with CIN.
Apply to Income Tax for 12A (tax exemption on own income) and 80G (donors get 50% deduction on donations). Both can now be applied together online.
Section 8 Company registration takes approximately 25–35 working days due to the additional step of obtaining a Government Licence (INC-12). Plan accordingly if you need to start operations by a certain date.
Section 8 Company is the gold standard for NGOs in India. Its credibility, legal framework, and tax structure make it the most suitable vehicle for social enterprises, educational institutions, and charitable foundations. Legal Chanakya handles complete Section 8 registration, 12A/80G applications, and ongoing compliance.
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