Starting a non-profit organisation (NPO) in India is a powerful way to create a long-term social impact. Among all NGO structures, a Section 8 Company is considered the most reliable and compliant form due to its strong legal framework, corporate structure, and high credibility among donors and government bodies. If you want to know how to register a Section 8 Company, this detailed guide will help you understand the eligibility, documents, steps, and compliance requirements of the registration process.
What is a Section 8 Company?
A Section 8 Company is a non-profit organisation formed under Section 8 of the Companies Act, 2013 with the primary objective of promoting:
- Education
- Social welfare
- Environment protection
- Arts, science, culture
- Sports
- Research
- Charity and more
The unique feature of a Section 8 Company is that all profits must be used only for charitable purposes and cannot be distributed among its members.
Eligibility to Register a Section 8 Company
Before you start the registration process, ensure that the following eligibility conditions are fulfilled:
- Minimum 2 Directors (one must be an Indian resident).
- Minimum 2 shareholders/members (directors and members can be the same individuals).
- The objective of the company must be charitable or non-profit in nature.
- No profit can be distributed to members.
- All earnings must be used for promoting the company’s social objectives.
Documents Required for Section 8 Company Registration
For Directors/Shareholders
- PAN card
- Aadhaar card
- Passport/Driving Licence/Voter ID (any one as identity proof)
- Bank statement / Electricity bill (as address proof)
- Passport size photograph
- Mobile number & email ID
For Registered Office
- Electricity bill/Water bill
- Rental agreement (if applicable)
- NOC from the property owner
Additional Documents
- Proposed name of the company
- Detailed objective of the NGO
- Digital Signatures (DSC) for directors
Step-by-Step Process to Register a Section 8 Company in India
Registering a Section 8 Company is a complete online process handled through the MCA (Ministry of Corporate Affairs) portal. Here is a simplified step-by-step process:
Step 1: Obtain Digital Signature Certificate (DSC)
The first step is to obtain DSC for all proposed directors.
A DSC is mandatory for signing all e-forms related to company incorporation.
Step 2: Apply for Director Identification Number (DIN)
If a proposed director does not already have a DIN, it must be applied through the SPICe+ form. DIN is a unique identification number required to act as a director in any company.
Step 3: Reserve a Unique Name
The next step is selecting the right name for your Section 8 Company.
Some important name guidelines:
- Must reflect the charitable nature.
- Should avoid words like trust, society, private limited without approval.
- Should not be identical to an existing company.
You can reserve a name through:
- SPICe+ Part A or
- RUN (Reserve Unique Name) service
Once the name is approved, you may proceed with incorporation.
Step 4: Draft Memorandum of Association (MOA) & Articles of Association (AOA)
For a Section 8 Company, the MOA must clearly define:
- Non-profit objectives
- Activities planned to achieve those objectives
The AOA explains the governing rules of the NPO, including:
- Appointment of directors
- Management structure
- Meetings and compliance rules
Step 5: Apply for Section 8 Licence (Form INC-12 through SPICe+)
This is the most important step.
To register a Section 8 company, you must apply for a licence under Section 8 using Form SPICe+, where the following documents are uploaded:
- MOA & AOA
- Financial plan (projected income & expenditure for 3 years)
- Declaration from directors
- List of promoters
- Details of work to be carried out
Once the application is reviewed, MCA grants a Section 8 Licence (Form INC-16).
Step 6: Incorporation of the Company (SPICe+ Part B)
After obtaining the licence, you must complete the incorporation process.
The forms included are:
- AGILE-PRO form for GST, EPFO, ESIC (optional)
- SPICe+ Part B
- PAN & TAN application
- INC-9 declaration
Once all documents are verified, the Registrar of Companies (ROC) issues:
- Certificate of Incorporation
- Section 8 Licence Number
- PAN & TAN
Your Section 8 Company is now legally registered.
Post-Registration Compliance for Section 8 Company
Once incorporated, a Section 8 company must ensure ongoing compliance, such as:
- Conducting board meetings
- Maintaining accounts & annual financial statements
- Filing AOC-4 and MGT-7 every year
- Maintaining proper books of accounts
- Renewing licences and registrations
- Applying for 12A and 80G registration to receive tax-exempt donations
Benefits of Section 8 Company Registration
- High credibility among donors & CSR contributors
- Strong corporate structure
- Limited liability protection
- Easy to raise grants and foreign funding (after FCRA)
- No minimum capital requirement
- 12A & 80G benefits after approval
Conclusion
Registering a Section 8 Company is the most reliable way to start a non-profit organisation in India. Although the process involves multiple legal and documentation steps, it ensures long-term stability, credibility, and compliance for your NGO. By understanding how to register a Section 8 Company and following the step-by-step procedure above, you can set up your organisation smoothly and begin making a meaningful social impact.
