Want to start a non-profit organization in India? Setting up a Section 8 Company is one of the most reliable and legally recognized ways to create a social impact. Whether your mission is in education, healthcare, environmental work, or cultural development, this type of company gives you a formal structure without the burden of profit-making.
In this guide, you’ll find everything you need to know about starting a Section 8 Company in India—from eligibility and documentation to the full registration process and key benefits.
What is a Section 8 Company?
A Section 8 Company is a non-profit legal entity formed under the Companies Act, 2013 and regulated by the Ministry of Corporate Affairs (MCA). It is created for charitable purposes such as promoting education, science, arts, environmental protection, or social welfare. Unlike regular companies, Section 8 Companies cannot distribute profits to their members or directors. All income must be reinvested into the organization’s objectives.
Benefits of Registering a Section 8 Company
Starting a Section 8 Company comes with several advantages:
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Tax Exemptions: Eligible for benefits under Section 12A and 80G of the Income Tax Act, making donations more attractive to donors.
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No Minimum Capital: You don’t need to invest a specific amount of capital to register the company.
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Legal Identity: Gains separate legal status, improving trust among stakeholders.
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Limited Liability: Members and directors have limited financial responsibility.
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Funding Opportunities: Can receive donations, government grants, and CSR funds from companies.
Who Can Start a Section 8 Company?
To register, you must meet these basic requirements:
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Minimum 2 directors and 2 shareholders
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At least 1 director must be an Indian resident
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A registered office address in India
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A clearly stated non-profit purpose
Documents Required
Here’s what you need to gather before applying:
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PAN and Aadhaar cards of all directors and shareholders
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Digital Signature Certificate (DSC) for online form submissions
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Director Identification Number (DIN)
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Memorandum of Association (MoA) and Articles of Association (AoA)
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Address proof of your registered office
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Declarations in INC-14 (from a professional) and INC-15 (from directors)
How to Register a Section 8 Company: Step-by-Step
Step 1: Apply for Digital Signature Certificate (DSC)
Required to sign documents electronically on the MCA portal.
Step 2: Get Director Identification Number (DIN)
Every proposed director must have a DIN, which can be applied for online.
Step 3: Reserve Company Name
Choose a unique and meaningful name. Use the RUN (Reserve Unique Name) service on the MCA website.
Step 4: File SPICe+ Form
Submit the integrated SPICe+ form with all required details, documents, and attachments including MoA, AoA, PAN, and TAN.
Step 5: Get Your Certificate of Incorporation
Once approved by the Registrar of Companies, you’ll receive the official Certificate of Incorporation and your Corporate Identification Number (CIN).
How to Check Registration Status
Visit the MCA portal and enter your company name or CIN to track the status of your application and download official documents.
Frequently Asked Questions
Q1. How many people are required to start a Section 8 Company?
A minimum of 2 directors and 2 shareholders is needed.
Q2. Can I register online?
Yes, the entire process is online via the Ministry of Corporate Affairs website.
Q3. Can Section 8 Companies accept donations?
Yes. Once registered under Section 12A and 80G, they can accept tax-deductible donations.
Q4. Is a physical office in India required?
Yes, you must have a valid registered address in India at the time of incorporation.
Conclusion
Creating a Section 8 Company is a smart way to turn your social vision into a credible, recognized, and impactful organization. It opens up access to funding, builds trust with partners and donors, and gives your mission a solid legal foundation.
If you're committed to driving change through education, environmental work, healthcare, or the arts, setting up a Section 8 Company could be your best next step.