Doc Summary
Overview
A Section 8 Company is a non-profit organization formed to promote charitable, educational, scientific, social, or environmental objectives. Unlike other companies, it operates without a profit motive and uses its income solely for the promotion of its objectives.
It is registered under Section 8 of the Companies Act, 2013, and regulated by the Ministry of Corporate Affairs (MCA). This structure is preferred by NGOs, trusts, and non-profit foundations for its credibility and legal recognition.
Eligibility / Who Should Apply
- Minimum 2 Directors and 2 Shareholders (can be the same individuals)
- At least one Director must be an Indian resident
- The Company must have charitable or non-profit objectives
- Suitable for NGOs, welfare societies, social enterprises, and educational organizations
Step-by-Step Process
- Digital Signature Certificate (DSC): Obtain DSCs for all proposed directors
- Director Identification Number (DIN): Apply for DIN through SPICe+
- Name Reservation: File for Company name using RUN or SPICe+ service
- Drafting of MOA & AOA: Define charitable objectives and governance structure
- Filing with MCA: Submit SPICe+ form with attachments, including declarations and statements of objectives
- License from MCA: Obtain a license under Section 8 before incorporation approval
- Certificate of Incorporation: Issued by ROC with CIN and Section 8 license number
Documents Required
- PAN & Aadhaar of Directors and Shareholders
- Passport-size Photos
- Proof of Address (Utility Bill / Bank Statement)
- Registered Office Proof (Rent Agreement / NOC / Ownership Proof)
- Projected financial statements for the next 3 years
- Detailed declaration of the Company’s objectives
Timeline
The registration process generally takes 15–20 working days, depending on the time taken by the MCA to issue the Section 8 license.
Post-Registration Requirements
- Apply for PAN, TAN, and GST (if applicable)
- Open a Bank Account in the Company name
- Appoint Statutory Auditor within 30 days
- File annual returns (AOC-4, MGT-7A) with MCA
- Register under Section 12AB and 80G with the Income Tax Department for tax exemption
Penalties for Non-Compliance
- Misuse of Section 8 status may result in license cancellation
- Non-filing of annual returns: ₹100 per day penalty
- Directors may face fines up to ₹25 lakh and imprisonment under the Companies Act for misuse of funds
Kanoons Service
Kanoons Law & Tax Consultants Pvt. Ltd. specializes in Section 8 Company registration and legal compliance for non-profit entities.
Our expert team provides:
- Pre-registration Consultation: Assessing objectives and confirming eligibility for Section 8 status
- License Application: Preparing and submitting detailed project reports, declarations, and financial projections
- MOA & AOA Drafting: Legally sound documents that align with MCA and Income Tax norms
- Filing & Incorporation: Complete assistance from license approval to Certificate of Incorporation
- Post-Registration Support: PAN, TAN, GST, 12AB & 80G registration, and ongoing compliance management
With over six years of corporate and legal expertise, Kanoons ensures every non-profit gets legally recognized status with seamless compliance.
Why Choose Kanoons
- Experienced professionals in NGO and charitable registrations
- End-to-end assistance from licensing to tax exemption
- Fast, reliable, and transparent online process
- Comprehensive compliance support after registration
- Trusted by multiple NGOs, welfare organizations, and charitable trusts
