Why Start a Section 8 Company?

A Section 8 Company is the best legal structure for non-profit organizations in India. Unlike trusts and societies, Section 8 companies offer better credibility, regulatory benefits, and access to funding. With the right strategy, you can create a lasting impact and ensure financial sustainability.

At Kanoons, we simplify the registration, compliance, and financial structuring of Section 8 companies to help you focus on your mission.

Key Benefits of a Section 8 Company

✅ Tax Benefits & Exemptions – Enjoy tax exemptions under the Income Tax Act.
✅ Enhanced Credibility – Gain trust from donors, investors, and stakeholders.
✅ Limited Liability Protection – Secure your assets from legal risks.
✅ Access to Government Grants – Eligible for government schemes and CSR funds.
✅ Better Compliance Framework – More structured governance than trusts and societies.
✅ No Minimum Capital Requirement – Start your NGO with minimal investment.
✅ Eligible for FCRA Registration – Receive foreign donations legally for greater impact.
✅ Long-Term Sustainability – Structured framework ensures continued operations and funding.

Step-by-Step Guide to Registering a Section 8 Company

📌 Step 1: Name Approval & Digital Signature Certificate (DSC) – Choose a unique name and get DSC for directors.
📌 Step 2: MOA & AOA Drafting – Define your company’s objectives and internal governance.
📌 Step 3: Apply for License under Section 8 – Submit your application to the MCA.
📌 Step 4: Company Incorporation – Get your Certificate of Incorporation from the ROC.
📌 Step 5: PAN, TAN & Bank Account Setup – Obtain PAN, TAN, and open a corporate bank account.
📌 Step 6: 12A & 80G Registration – Secure tax exemptions for donations.
📌 Step 7: FCRA Registration (If Required) – Obtain permission to receive foreign funding.

How to Sustain and Grow Your Section 8 Company?

🔹 Leverage Government Grants & CSR Funding – Apply for grants to support your initiatives.
🔹 Build Donor & Stakeholder Trust – Maintain financial transparency and good governance.
🔹 Comply with Annual Filings & Reports – Avoid legal issues by adhering to regulatory norms.
🔹 Plan for Long-Term Sustainability – Develop revenue models like fundraising, events, and membership programs.
🔹 Use Technology for Impact – Automate processes, manage projects, and track donations effectively.
🔹 Engage with Corporate CSR Initiatives – Partner with businesses looking for social impact collaborations.
🔹 Expand Reach Through Digital Marketing – Leverage social media and online platforms to grow your donor base.

At Kanoons, we provide expert assistance in legal structuring, financial planning, and compliance to help your NGO achieve long-term sustainability.

Success Story: How an NGO Transformed with Kanoons

A group of social entrepreneurs wanted to register an NGO but struggled with legal complexities. With Kanoons’ expert guidance, they successfully established a Section 8 company, obtained 80G tax exemption, and secured CSR funding from leading corporates. Today, their NGO is making a tangible impact in education and healthcare.

Lesson: Proper legal structuring and compliance can significantly boost your NGO’s credibility and fundraising potential.