Section 8 Company Registration Process Step By Step

Are you driven to create meaningful change in society through education, social welfare, environmental protection, or other charitable causes? If so, Section 8 Company Registration could be the most effective legal structure to support your mission. A Section 8 Company, governed by the Companies Act, 2013, is a not-for-profit entity formed with the objective of promoting charitable, educational, religious, or social purposes.

A Section 8 Company is registered with the Ministry of Corporate Affairs (MCA), giving it national-level recognition and a formal corporate structure. In comparison, NGOs set up as trusts or societies are registered under state authorities like the Registrar of Societies or Charity Commissioner, which may offer a limited scope.

In this article, we’ll walk you through a clear and easy-to-follow step-by-step process to help you understand about Section 8 Company Registration, along with important details on documents, timelines, compliance requirements and common mistakes to avoid in Section 8 Company Registration.

Table of Contents

What is a Section 8 Company?

A Section 8 Company is a legally recognized non-profit entity formed under the Companies Act, 2013, with the aim of promoting causes that benefit society. These may include activities related to education, healthcare, arts, culture, science, environment, commerce, sports and other charitable initiatives.

Here’s what makes a Section 8 Company Registration unique:

Purpose-driven, not profit-driven: The primary goal is to serve the public good, not to earn profits. Any income generated go towards furthering the organisation’s objectives.
No profit sharing: Members or shareholders are not entitled to dividends or income. The surplus, if any, is strictly reinvested in the company’s social mission.
Name exemption: Unlike other companies, a Section 8 Company is not required to use “Private Limited” or “Limited” in its name, allowing it to reflect its non-profit nature more clearly.
Separate legal identity: It can function independently from its members, meaning it can own property, sign contracts, and even initiate legal proceedings in its own name.
Regulated by the MCA: The company is registered and monitored by the Ministry of Corporate Affairs, which offers a strong legal foundation and nationwide recognition.

Key benefits of Section 8 Company Registration

Choosing Section 8 CompanyRegistration offers several advantages, especially for individuals and organizations looking to create long-term social impact in a legally structured and tax-efficient way. Following are some notable benefits:

Limited Liability Protection: Shareholders of a Section 8 Company are only responsible for the company’s debts up to the amount they have agreed to contribute. This means their personal assets remain protected, whether the company is limited by shares or by guarantee.
Greater Credibility and Legal Standing: Section 8 Companies are registered and licensed by the Ministry of Corporate Affairs (MCA), giving them a more credible and recognized legal status compared to trusts and societies. This makes them more trustworthy in the eyes of donors, government agencies, and financial institutions.
Tax Benefits for Donors: When a Section 8 Company obtains 80G registration under the Income Tax Act,1961, donors can claim tax deductions on their contributions. This serves as a strong incentive for fundraising and attracting support from individuals and corporates.
Income Tax Exemptions for the Company: A Section 8 Company registered under Section 12A or 12AB of the Income Tax Act, 1961 can enjoy exemption from income tax on its surplus income. This allows the organization to retain more funds to reinvest in its social projects.
No Minimum Capital Requirement: There is no mandatory paid-up capital needed to start a Section 8 Company. It can be incorporated with or without share capital and is also exempt from stamp duty, making it cost-effective to set up.

Who is Eligible for Section 8 Company Registration in India?

A Section 8 Company is designed for those who want to make a positive difference in society through a formal and legally recognized non-profit structure. While certain guidelines need to be met, the eligibility criteria are quite flexible for genuine applicants.

Here’s who can apply for Section 8 Company Registration:

Any person who is at least 18 years old can apply, whether they are an Indian citizen or a foreign national.
Two or more individuals who share a charitable vision and want to work together under a registered non-profit entity.
Existing businesses or corporate groups that wish to launch a non-profit branch or subsidiary for charitable purposes.
Partnerships or associations that are already involved in social work and want to formalize their operations.

The intention of the applicant matters. Applicants must be able to demonstrateclearly that their objective is to serve the public through activities such as education, social welfare, culture, science, sports, or environmental protection. Personal profit cannot be a motive, and any income generated must be reinvested into the company’s mission.

Documents Required for Section 8 Company Registration

Before you begin the registration process, it’s important to gather all the necessary documents in advance. Having everything ready will not only speed up the process but also help avoid unnecessary delays during verification.

Below is a checklist of documents you’ll need:

Category	Document
For All Directors	PAN Card (mandatory for Indian citizens)
	Aadhaar Card, Voter-ID or Passport for address proof.
	Passport-size photograph
	Email ID and mobile number
	Digital Signature Certificate (DSC)
For Registered Office	Recent utility bill or property tax receipt (not older than 2 months)
	Rent agreement (if office premises are rented)
	No Objection Certificate (NOC) from the property owner (if applicable)
Legal & Compliance Docs	Memorandum of Association (MOA) and Articles of Association (AOA)
	Declaration by a Chartered Accountant or Company Secretary (as applicable)

Make sure to keep both digital and physical copies of these documents ready. They will be required at various stages of registration, licensing, and future compliance with the Ministry of Corporate Affairs (MCA).

Step by Step Process of Section 8 Company Registration

To help you navigate the Section 8 Company registration process, we’ve outlined a clear flowchart covering key steps, from choosing a unique name, up to filing SPICe+ forms and getting the certificate of incorporation from the Registrar of Companies. This visual guide offers a step-by-step overview to ensure compliance and clarity throughout the process.

Choose a unique Company Name

The journey of Section 8 Company Registration begins with selecting a distinctive and meaningful name. This name should clearly convey the purpose of your non-profit and align with its core mission. Consider incorporating terms like “Foundation,” “Association,” “Society,” or “Institute” to highlight the charitable or social intent behind your organization. It’s important to verify that the name isn’t already in use or registered as a trademark to avoid any legal complications.

Not sure how to pick the perfect name for your Section 8 Company? Refer our article: –

How to choose a perfect company name in 2025

Obtain Digital Signature Certificate (DSC)

After finalising your Section 8 Company name, the next step is to obtain Digital Signature Certificates (DSCs) for all proposed directors. Since the registration process is entirely online, the Ministry of Corporate Affairs (MCA) requires that all forms and documents be digitally signed.

A DSC acts as your digital identity, allowing you to securely sign electronic documents during incorporation. It is a mandatory requirement, and without it, you will not be able to proceed with filing forms on the MCA portal.

My Legal Business LLP provides end-to-end support for obtaining DSCs through trusted government-authorised agencies, making the process quick and hassle-free for you.

Apply for Name Approval (SPICE PART A)

Now that you have your desired name and the Digital Signature Certificates in place, the next step is to get your company name officially approved. This is done using the service (SPICE+ PART A) available on the Ministry of Corporate Affairs (MCA) portal.It can be applied in conjunction with SPICE+ Part B form as well.

When applying, you will need to provide the chosen name along with a short description of your company’s objectives. If the name meets all the guidelines and doesn’t conflict with existing company names or trademarks, the approval usually takes around a week.

Once your name is approved, you’re all set to move forward with the incorporation documents. If you need help with drafting the right description or submitting your application smoothly, our experts are here to assist you every step on the way.

File The Incorporation Documents – SPICE Part B, AOA, MOA, INC-9, AGILE FORM

Once your company name is approved, it’s time to move forward with the most crucial step of filing the incorporation documents with the Ministry of Corporate Affairs (MCA). This is where your Section 8 Company Registration begins to take legal shape.

You’ll need to complete and submit the SPICe+ Part B form, along with other mandatory documents such as the Memorandum of Association (MOA), Articles of Association (AOA), INC-9 (declaration by directors), and the AGILE-PRO-S form for GST, EPFO, ESIC, bank account and professional tax registrations.

Each document serves a specific purpose, from defining your company’s objectives to register for essential government services.

Issue of Certificate of Incorporation

After successfully submitting all the incorporation documents, you’re just one step away from bringing your Section 8 Company to life. Once the Registrar of Companies (ROC) verifies your application and finds everything in order, you will be issued the Certificate of Incorporation (COI).

This certificate is a legal proof that your company has been formally registered under Section 8 of the Companies Act, 2013. It includes your Company Identification Number (CIN) and confirms the date of incorporation.

From this point, your company is officially recognized as a legal non-profit entity, and you can begin operations, open a bank account, and apply for licenses or grants.

Section 8 Company Registration Fees in India

If you’re planning forSection 8 Company Registration, it’s a good idea to understand the costs involved upfront. The overall expenses are quite reasonable and depend on the services you need during the process. Below is a simple breakdown of the estimated government fees and timelines:

Service	Government Fees (₹)	Estimated Processing Time
Digital Signature (DSC)	₹1,500 – ₹2,500	1 to 2 working days
Name Approval (RUN Form)	₹1,000	2 to 3 working days
Section 8 Company Registration	₹5,000 – ₹15,000	07 to 10 working days

These fees may vary slightly depending on professional service charges, the number of directors, and whether your application includes any additional documentation or clarifications.

By keeping your documents ready and working with My Legal Business LLP, you can ensure a smooth and cost-effective registration process.

Common Mistakes to Avoid During Section 8 Company Registration

Starting a Section 8 Company is a great step toward building a purpose-driven organization. However, small errors during the registration process can lead to delays or legal complications. Here’s a quick overview of the most common mistakes and how to avoid them:

1. Vague Objectives in the MOA:
Your Memorandum of Association must clearly state the charitable purpose. Avoid using general or confusing language that may not align with MCA guidelines. Cross check the objectives clearly with Schedule VII of the Companies Act, 2013, if you wish to raise CSR funding.

2. Incomplete or Mismatched Documents:
Ensure consistency in all details such as name, address, and ID numbers across documents like PAN, Aadhaar, utility bills, and NOC. Always keep both digital and physical copies ready.

3. Missing DSC:
Digital Signature Certificates are compulsory for directors. Make sure these are obtained before starting the application.

4. Choosing an Ineligible Name:
Many applications are rejected due to name conflicts or non-compliance with naming guidelines. Check for trademark issues and MCA rules before submitting your preferred name.

5. Skipping 80G and 12AB Registrations:
To receive tax exemptions and offer benefits to donors, these registrations are necessary. Apply for them soon after incorporation to avoid delays in fundraising and compliance.

6. Not Taking Expert Help:
The process involves legal formalities and technical documentation. Getting help from a professional like a Company Secretary or CA ensures smooth and error-free registration.

Taking care of these small but crucial details can make your registration process faster, easier, and stress-free.

Why choose My Legal Business LLP for Section 8 Company Registration

Section 8 Company Registration involves legal procedures, documentation, and approvals that require professional handling. That’s where My Legal Business LLP comes in.

We offer expert-led, end-to-end services for Section 8 Company Registration. Our team of qualified professionals provides clear guidance and hands-on support throughout the process, from name approval and document drafting to final incorporation and post-registration compliance.

With our experience in NGO registrations, we ensure your company is registered smoothly while keeping you compliant with all legal requirements. This allows you to focus on your core mission without worrying about paperwork.

If you are looking to start a non-profit the right way, choose My Legal Business LLP as your trusted registration partner.

Conclusion

Section 8 Company Registration is more than just a legal process. It is a step toward building a structured platform for social change. By following the prescribed steps under the Companies Act, 2013 and complying with the Ministry of Corporate Affairs’ requirements, individuals and organizations can form a legally recognized non-profit entity with limited liability and several tax advantages.

Section 8 Companies play a vital role in promoting education, health, environmental protection, and other charitable causes. Their commitment to public welfare, combined with proper governance, helps them create lasting impact while upholding the values of transparency, responsibility, and service.

If your goal is to serve society while maintaining legal and financial credibility, Section 8 Company Registration is a strong and reliable choice.

Frequently Asked Questions

Q-1 Can a Section 8 Company receive donations from abroad?

A-1 Yes, a Section 8 Company can receive donations from abroad, but only if it complies with the Foreign Contribution Regulation Act (FCRA), 2010. The company must obtain FCRA registration or, in some cases, prior permission from the government before accepting any foreign contributions or donations. Without FCRA approval, receiving foreign donations is not permitted.

Q-2 How long does it take to register a Section 8 Company?

A-2 Section 8 Company registration usually takes 07–10 days, depending on document preparation and application processing times from the MCA.

Q-3 Is there a minimum capital requirement for Section 8 Company registration?

A-3 No, there is no minimum capital requirement to register a Section 8 Company in India.

Q-4 Can foreign nationals or NRIs be directors in a Section 8 Company?

A -4 Yes, foreign nationals or Non-Resident Indians (NRIs) can be directors, but at least one director must be a resident of India.

Q-5 Can a Section 8 Company be converted into a regular company?

A-5 No, a Section 8 Company cannot be converted into a private or public limited company with profit motives. It must remain a non-profit entity unless approved by a competent court and Central Government under stringent conditions.

Q-6 Is it mandatory for a Section 8 Company to get 12A and 80G registration?

A-6 While it’s not mandatory, obtaining 12A and 80G registration is highly recommended. These registrations offer income tax exemptions for the company and enable donors to claim tax deductions on their donations.

Q- 7 Is there any government fee concession for Section 8 Company registration?

A -7 Yes, the government charges a reduced fee for Section 8 Companies as compared to other companies. However, professional fees for documentation and filing may still apply.

Q-8 Can I register the Section 8 company in any state in India?

A -8 Yes, you can register a Section 8 Company from any state in India. The jurisdiction of the Registrar of Companies (ROC) will depend on the state in which your registered office is located.