Section 8 Company Registration (Not-for-Profit)

Q: Is a Section 8 Company eligible for CSR funding?

Yes, if registered under Form CSR-1 on the MCA portal. CSR-1 registration is mandatory from April 2021. The company must have 3+ years of existence and an established track record to qualify as a CSR implementing agency.

Q: What is the process to apply for 12AB and 80G registration?

Applied online on the income tax portal. Provisional 12AB registration granted within 1 month, valid for 3 years. Regular registration (5 years) after submitting 3 years of audited accounts. 80G provisional approval granted simultaneously.

Q: Can a Section 8 Company pay salaries to its directors and employees?

Employees can receive reasonable salaries. Directors generally cannot receive remuneration without Central Government authorisation. The dividend restriction applies to members — not to employment remuneration for services rendered.

Q: What are the annual compliance requirements for a Section 8 Company?

Statutory audit, AOC-4 within 30 days of AGM, MGT-7 within 60 days of AGM, minimum 2 board meetings per year, ITR-7 filing, annual utilisation reports under 12AB, and all statutory registers.

Register a Non-Profit Company Under Section 8 of the Companies Act, 2013 for Charitable, Educational, and Social Purposes

A Section 8 Company is a company formed for promoting charitable objects — such as commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection — where the profits are applied only towards promoting these objects and are not distributed as dividends to the members. It is the corporate equivalent of a charitable trust or society but with the governance advantages of the Companies Act framework.

Section 8 Companies benefit from tax exemptions under Sections 11, 12, and 12AB of the Income Tax Act upon registration with the income tax department, and donations to registered Section 8 companies may be eligible for 80G deduction in the hands of donors. For related services, see our trust audit services and private limited company registration.

Our Section 8 Company Registration Services

Central Government Licence

Filing application to the Central Government (ROC) for a licence under Section 8 — including the proposed MOA, AOA, and a declaration of charitable intent and objects.

MOA & AOA Drafting

Drafting MOA and AOA with clearly defined charitable objects and a restriction on dividend distribution — mandatory for obtaining the Section 8 licence.

SPICe+ Incorporation Filing

Filing the SPICe+ form for incorporation of the Section 8 Company after obtaining the Central Government licence — resulting in the Certificate of Incorporation.

Section 12AB Registration

Applying for registration under Section 12AB of the Income Tax Act to obtain tax exemption on the company's income applied for charitable purposes.

80G Approval for Donors

Applying for approval under Section 80G enabling donors to claim a 50% deduction on donations made to the Section 8 Company — a powerful tool for fundraising.

FCRA Registration Support

Advising on and supporting FCRA registration for Section 8 Companies wishing to receive foreign contributions for charitable activities in India.

Key Features of a Section 8 Company

Profits must be applied only towards the charitable objects — no dividend distribution to members
No minimum capital requirement — can be incorporated with nominal share capital
Eligible for income tax exemption under Section 11 and 12 upon 12AB registration
Donors can claim 80G deduction (50% of donation) upon approval — attractive for fundraising
Must file AOC-4 and MGT-7 annually — no exemption from ROC filing unlike trusts and societies
Conversion to any other type of company requires Regional Director approval
Word "Limited" or "Private Limited" is not required in the company name

Frequently Asked Questions

What is the difference between a Section 8 Company and a charitable trust?

A Section 8 Company is incorporated under the Companies Act, 2013 and regulated by the MCA — it offers stronger governance, mandatory auditing, and public disclosure of financials. A charitable trust is registered under the Indian Trusts Act or the relevant state Public Trusts Act and is regulated by the Charity Commissioner or state authorities. Section 8 Companies are generally preferred for larger NGOs seeking credibility, FCRA registration, and CSR funding from corporates, while trusts are simpler to form for smaller charitable activities.

Is a Section 8 Company eligible for CSR funding?

Yes. A Section 8 Company established by the CSR-spending company or its group, or an independent Section 8 Company registered under Form CSR-1 on the MCA portal, can receive CSR funds from companies. CSR-1 registration is mandatory before receiving any CSR disbursement from April 2021 onwards. The Section 8 Company must have been in existence for at least 3 years and have an established track record to qualify as a CSR implementing agency.

What is the process to apply for 12AB and 80G registration?

12AB and 80G registrations are applied for online on the income tax portal. The provisional 12AB registration is granted within 1 month of application and is valid for 3 years. Regular registration (valid for 5 years) is obtained after submitting audited accounts for 3 years under provisional registration. 80G provisional approval is granted along with 12AB. Upon successful provisional registration, the Section 8 Company's income applied for charitable purposes is exempt from tax under Section 11.

Can a Section 8 Company pay salaries to its directors and employees?

Yes. A Section 8 Company can pay reasonable salaries and remuneration to its full-time employees including professional staff. However, directors of a Section 8 Company generally cannot receive remuneration unless specifically authorised by the Central Government. The restriction on dividend distribution applies to members — not to reasonable employment remuneration for services rendered.

What are the annual compliance requirements for a Section 8 Company?

A Section 8 Company must comply with all Companies Act requirements including: statutory audit; filing AOC-4 (within 30 days of AGM) and MGT-7 (within 60 days of AGM); holding board meetings (at least 2 per year for Section 8 companies — relaxed from 4); filing ITR-7 for income tax (since most claim exemption under Section 11); filing annual utilisation reports under 12AB; and maintaining all statutory registers. The Section 8 licence can be revoked by the ROC for non-compliance.

Incorporate Your Non-Profit Company — With Tax Exemptions

Section 8 licence, incorporation, 12AB registration, 80G approval, and ongoing compliance support.

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F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.