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Welcome to Trisuka, where we specialize in assisting non-profit organizations in the formation of Section 8 Companies. We will guide you through the process of forming a Section 8 Company, also known as a not-for-profit company. Discover what a Section 8 Company entails, the necessary documents required, the step-by-step process, eligibility criteria, and the pros and cons of choosing this unique legal structure.


Section 8(NGO) Company Registration

A Section 8 Company is a type of non-profit organization that is established for promoting art, science, commerce, charity, religion, or any other socially beneficial objective. The primary goal of a Section 8 Company is to apply its profits, if any, towards the promotion of its objectives rather than distributing them to its members. These companies are governed by Section 8 of the Companies Act, 2013, and enjoy certain exemptions and benefits.

To establish a Section 8 Company, certain documents need to be prepared and submitted. These include:

  • Memorandum of Association (MoA): The MoA outlines the objectives, activities, and scope of the Section 8 Company.
  • Articles of Association (AoA): The AoA defines the rules and regulations governing the internal management and operations of the company.
  • Director Identification Number (DIN): The proposed directors of the Section 8 Company must obtain a unique DIN from the Ministry of Corporate Affairs (MCA).
  • Digital Signature Certificate (DSC): Digital signatures are required for electronically signing various documents throughout the registration process.
  • Address Proof: The company must provide address proof documents such as utility bills or rental agreements for the registered office address.

The process of forming a Section 8 Company involves the following steps:

  • Obtaining Director Identification Number (DIN): Apply for DIN for all the proposed directors of the Section 8 Company.
  • Digital Signature Certificate (DSC): Obtain DSC for all the proposed directors.
  • Name Approval: Select a unique name for the Section 8 Company and apply for its approval with the Registrar of Companies (ROC).
  • Drafting MoA and AoA: Prepare the MoA and AoA in compliance with the requirements of Section 8 of the Companies Act, 2013.
  • Filing Incorporation Documents: Prepare and submit the necessary incorporation documents, including the MoA, AoA, and other prescribed forms, to the ROC.
  • Payment of Fees: Pay the prescribed fees along with the incorporation documents.
  • License Application: Apply for a license under Section 8 of the Companies Act, 2013, by submitting the required documents and declarations.
  • Certificate of Incorporation: Upon successful review and verification, the ROC issues the Certificate of Incorporation, officially establishing the Section 8 Company.

To register a Section 8 Company, the following eligibility criteria must be met:

  • The company must be formed for promoting art, science, commerce, charity, religion, or any other socially beneficial objective.
  • The profits of the company must be applied towards promoting its objectives and not distributed to its members.
  • Charitable Objectives: Section 8 Companies are formed with the primary aim of serving charitable or socially beneficial purposes, making a positive impact on society.
  • Limited Liability: Members of a Section 8 Company enjoy limited liability, safeguarding their personal assets.
  • Tax Exemptions: Section8 Companies are eligible for various tax exemptions, including income tax benefits, donations exemption under Section 80G, and exemption from stamp duty for certain transactions.
  • Greater Credibility: Section 8 Companies are often perceived as more trustworthy and credible by donors, government bodies, and stakeholders due to their non-profit nature and commitment to social welfare.
  • Stringent Compliance Requirements: Section 8 Companies are subject to strict compliance obligations, including filing annual financial statements, conducting regular board meetings, and maintaining proper accounting records.
  • Restricted Profit Distribution: Section 8 Companies are prohibited from distributing profits among their members. All income generated must be utilized for achieving the company’s charitable objectives.
  • Licensing Process: The process of obtaining a license under Section 8 of the Companies Act can be time-consuming and involves detailed scrutiny by regulatory authorities.
  • Limited Fundraising Options: Section 8 Companies may face challenges in raising funds as they cannot issue shares or offer financial returns to investors. They heavily rely on donations and grants.


  1. Can a Section 8 Company be converted into a different legal structure?
    Yes, it is possible to convert a Section 8 Company into another legal structure, such as a trust or society, if the company wishes to change its form. The conversion process involves complying with the necessary legal requirements and obtaining approval from the relevant authorities.

  2. Are foreign contributions allowed in Section 8 Companies?
    Yes, Section 8 Companies can receive foreign contributions subject to compliance with the Foreign Contribution Regulation Act (FCRA) and other applicable laws and regulations.

  3. Is it mandatory to obtain a license under Section 8 of the Companies Act?
    Yes, it is mandatory to obtain a license from the relevant authority under Section 8 of the Companies Act before incorporating a Section 8 Company. The license ensures compliance with the specific provisions applicable to such companies.

  4. Can a Section 8 Company generate profits?
    Although Section 8 Companies primarily exist for charitable purposes, they can generate profits through their activities. However, such profits must be utilized for achieving the company’s objectives and cannot be distributed among the members.

  5. Can individuals be appointed as directors of a Section 8 Company?
    Yes, individuals can be appointed as directors of a Section 8 Company. However, certain criteria, such as age, qualifications, and eligibility, must be met as per the Companies Act and other applicable regulations.

**Please note that while these answers provide a general understanding, it is always advisable to consult with professionals or legal experts for specific guidance to your unique circumstances.