Section 8 Company (NGO) Registration – Valcoura
Section 8 Company (Non-Profit / NGO) Registration
The most trusted & credible structure for social impact, education, charity, environment, research & grant-backed organisations in India.
Valid PAN India CSR, FCRA, Grants, 80G/12A Eligibility
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What is a Section 8 Company?

A Section 8 Company is a special legal structure under the Companies Act, 2013, meant for non-profit organizations. It is formed with the **sole objective of promoting charitable, social, educational, environmental, cultural or research activities**. Profits or income of the company cannot be distributed among members or shareholders; everything must be used **exclusively to advance the organization’s mission** and public benefit[5][2].
Section 8 Companies are widely recognized by government, corporates (CSR), international grant bodies, and allow you to issue 80G/12A certificates and apply for FCRA for foreign funds.

Section 8 Company — Features at a Glance

Feature Details
Legal Identity Separate legal entity from the founders; can acquire property, contract, sue/be sued in its name[5].
Objective Promotion of charitable, social welfare, research, education, arts, science, sports, or similar public good.
No Profit Distribution No dividends allowed; all profits reinvested exclusively in the organization's aims[2][5].
Members/Directors Minimum 2 directors (private)/3 (public); at least 2 members; 1 must be Indian resident[2][5].
Registration Authority Registrar of Companies (ROC), Ministry of Corporate Affairs (MCA)[5].
Capital Requirement No minimum capital; amount should be enough for the declared objectives[6].
Eligibility Individuals or groups aiming at genuine non-profit or charitable activity.
Tax Benefits Can apply for 12A (income tax exemption) and 80G (donor tax exemption), CSR grants, and FCRA.
Compliance Annual accounts, IT return, filings with ROC/MCA; increased transparency required.
Termination On dissolution, assets can only be transferred to another Section 8 NGO, never to members[5].
Applicable Law Companies Act, 2013 (Section 8), plus Income Tax Act for exemptions[5][6].

Why Choose Section 8 Company?

Most credible NGO format recognized by government, corporates, grant agencies[5].
Strong corporate governance with clear transparency & reporting.
Eligible for all government/CSR grants, partnerships, 80G/12A, FCRA certification.
Suitable for social startups, research, education, charitable and cause-based activities.
No risk of profit siphoning, increased donor & partner trust.
Asset protection: property always remains with public cause, never with founders.
PAN India validity — operate anywhere, raise funds, hire staff, collaborate.

Section 8 Company Registration — Steps

  1. Obtain Digital Signature (DSC) and Director Identification Number (DIN) for all founders/directors[3][6].
  2. Reserve a unique NGO name through MCA’s RUN service[5].
  3. Draft Memorandum & Articles of Association (MoA & AoA), clear statement of objectives, projected finances[4][5].
  4. Apply for Section 8 License (File Form INC-12) along with required attachments and declarations[2][5].
  5. ROC/MCA grants license after scrutiny, issues Certificate of Incorporation, PAN/TAN[3][2].
  6. Open NGO bank account and commence activities, apply for 80G/12A exemptions, FCRA if necessary.

Documents Required

For All Directors/Promoters

  • PAN card (self-attested), Aadhaar card, passport (if foreign national)
  • Address proof (Voter ID/Passport/Driver's License)
  • Email & mobile number
  • Passport size photographs

For Registered Office

  • Proof of address (utility bill/rent agreement/NOC)
  • Proposed NGO name, draft MoA & AoA
  • Projected 3 years’ future income & expenditure statement[4]
All documents must be clear color scans, self-attested; foreign directors need notarized/apostilled docs[1][5].

Advantages Disadvantages

Advantages

  • Highest legal credibility, global recognition, enables CSR funding and grants.
  • Profit reinvestment ensures public good and transparency, attracts donors.
  • Directors have protected legal status; liability limited to company acts.
  • Eligible for various tax benefits and government partnerships.
  • Asset protection — property can never be claimed for personal use, only for public objectives.

Disadvantages

  • Cannot distribute profit as dividend; no personal gain allowed for founders.
  • Higher compliance and annual reporting than a trust/society.
  • Dissolution strictly regulated; assets must be transferred to another Section 8 NGO.
  • Needs detailed paperwork and tight scrutiny by MCA, takes 15-30 days for registration.
  • Not suitable for commercial activities or those seeking investment returns.

Ideal Use Cases

- Charitable & public health NGOs
- Educational societies, public research bodies, schools
- Social entrepreneurship, incubators for good
- CSR foundations, grant-based impact organisations
- Environmental, animal welfare, cultural/heritage organizations
- Social startups needing credibility, legal compliance & scaling
Not for: profit-oriented startups, commercial or equity-raising ventures.

Start Your Section 8 NGO

End-to-end support for legal registration, CSR/grant approval, 80G/12A, all-India operation from experienced experts.
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Mail: Hello@valcoura.com

Frequently Asked Questions (FAQ)

1. What is a Section 8 Company?
It is a non-profit organization under the Companies Act, 2013, formed specifically for charity, education, research, sport, environment or other social purposes. Profit cannot be distributed, only reinvested for project growth[5][2].
2. How is it different from a Trust or Society?
Section 8 Company has stronger corporate governance, stricter compliance, centralized law, and is better recognized by corporates, global donors, and the government[5].
3. Can founders/directors draw a salary?
Yes, but only as fair compensation for work/services; profits cannot be distributed as dividends.
4. What documents are necessary for registration?
PAN, Aadhaar, address proof, photos for all directors; office proof, draft objectives, future income/expense estimate, and declarations[1][4][5].
5. Is there a minimum capital to start?
No, but the declared capital should be sufficient for intended activities and must be justified in the application[6].
6. What is the compliance after registration?
Annual ROC/MCA filings, income tax returns, maintenance of accounts, audit, and board meetings are mandatory[5][2].
7. Can Section 8 receive foreign donations?
Yes, after FCRA registration. Section 8 is eligible for foreign grants and funds.
8. Can assets/property be distributed if the NGO closes?
No, on dissolution, assets are transferred only to another Section 8 company with similar objectives — never to private persons[5].