{"id":907,"date":"2026-03-18T11:39:27","date_gmt":"2026-03-18T11:39:27","guid":{"rendered":"https:\/\/www.mylegalbusiness.com\/blog\/?p=907"},"modified":"2026-03-19T07:41:58","modified_gmt":"2026-03-19T07:41:58","slug":"who-can-start-a-section-8-company-in-india","status":"publish","type":"post","link":"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/","title":{"rendered":"Who Can Start a Section 8 Company in India? Complete Guide"},"content":{"rendered":"\n<p>Who can start a Section 8 company in India? Learn eligibility, rules, and requirements for nonprofit registration and start your organisation today.<\/p>\n\n\n\n<p>Most people in India want to start an organisation that is for education, charity, healthcare, or any social cause. There is one thing that people often find confusing. That is <strong>who can start a Section 8 company in India?<\/strong><\/p>\n\n\n\n<p>It is thought that only big organisations can start a non-profit company in India. Some people think that only a few rich people can<strong> start a Section 8 company in India.<\/strong><\/p>\n\n\n\n<p>Actually, any type of person or organisation can start a Section 8 company in India. But the person or organisation must follow the eligibility criteria.<\/p>\n\n\n\n<p>This guide will tell you <strong>who can start a Section 8 company in India.<\/strong><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#What_Is_a_Section_8_Company\" >What Is a Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Who_Can_Start_a_Section_8_Company_in_India\" >Who Can Start a Section 8 Company in India?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Individuals\" >Individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Group_of_Individuals\" >Group of Individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Existing_Companies\" >Existing Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Associations_or_Societies\" >Associations or Societies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Minimum_Members_Required_to_Start_a_Section_8_Company\" >Minimum Members Required to Start a Section 8 Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Private_Section_8_Company\" >Private Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Public_Section_8_Company\" >Public Section 8 Company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Eligibility_Criteria_for_Section_8_Company_Registration\" >Eligibility Criteria for Section 8 Company Registration<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Charitable_or_Social_Purpose\" >Charitable or Social Purpose<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Profit_Must_Not_Be_Distributed\" >Profit Must Not Be Distributed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Transparent_Governance\" >Transparent Governance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Key_Benefits_of_Starting_a_Section_8_Company\" >Key Benefits of Starting a Section 8 Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Strong_Legal_Recognition\" >Strong Legal Recognition<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Tax_Benefits\" >Tax Benefits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Better_Funding_Opportunities\" >Better Funding Opportunities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Limited_Liability_Protection\" >Limited Liability Protection<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Documents_Required_to_Start_a_Section_8_Company\" >Documents Required to Start a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Cost_of_Starting_a_Section_8_Company_in_India\" >Cost of Starting a Section 8 Company in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Basic_Steps_to_Register_a_Section_8_Company\" >Basic Steps to Register a Section 8 Company<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Step_1_Obtain_Digital_Signature_Certificate\" >Step 1: Obtain Digital Signature Certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Step_2_Name_Approval\" >Step 2: Name Approval<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Step_3_Apply_for_Incorporation\" >Step 3: Apply for Incorporation<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Common_Mistakes_When_Starting_a_Section_8_Company\" >Common Mistakes When Starting a Section 8 Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Can_a_single_person_incorporate_a_Section_8_company\" >Can a single person incorporate a Section 8 company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Can_foreigners_incorporate_a_Section_8_company_in_India\" >Can foreigners incorporate a Section 8 company in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#What_is_the_minimum_capital_that_must_be_present_for_a_Section_8_company\" >What is the minimum capital that must be present for a Section 8 company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.mylegalbusiness.com\/blog\/who-can-start-a-section-8-company-in-india\/#Is_a_Section_8_company_better_than_a_trust\" >Is a Section 8 company better than a trust?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Section_8_Company\"><\/span><a><\/a>What Is a Section 8 Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Section 8 company is <strong>a non-profit company registered under the Companies Act, 2013.<\/strong><\/p>\n\n\n\n<p>The main objective of a Section 8 company is to promote social, charitable, and other similar activities.<\/p>\n\n\n\n<p>Unlike other companies, the profits of a Section 8 company are not distributed among the members.<\/p>\n\n\n\n<p><strong>Objectives of a Section 8 company:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Education<\/li>\n\n\n\n<li>Social welfare<\/li>\n\n\n\n<li>Environmental protection<\/li>\n\n\n\n<li>Charity<\/li>\n\n\n\n<li>Research<\/li>\n\n\n\n<li>Arts and culture<\/li>\n<\/ul>\n\n\n\n<p>Because of the above-mentioned features, many NGOs operate as Section 8 companies in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_Start_a_Section_8_Company_in_India\"><\/span><a><\/a>Who Can Start a Section 8 Company in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now, let\u2019s move to the most important query of all:<strong> Who can start a Section 8 Company in India?<\/strong><\/p>\n\n\n\n<p>According to the law, several individuals or persons can form a Section 8 Company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Individuals\"><\/span><a><\/a>Individuals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Any individual who is either an <strong>Indian citizen or a foreign national<\/strong> can form a Section 8 Company.<\/p>\n\n\n\n<p>However, the individual needs to fulfil the following requirements:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum age of 18 years<\/li>\n\n\n\n<li>No legal disability to become a Director<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Group_of_Individuals\"><\/span><a><\/a>Group of Individuals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A group of people with a common social objective in mind can also form a Section 8 company.<\/p>\n\n\n\n<p><strong>For example:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Social workers<\/li>\n\n\n\n<li>Educators<\/li>\n\n\n\n<li>Environmental activists<\/li>\n\n\n\n<li>Community leaders<\/li>\n<\/ul>\n\n\n\n<p>When people work in a group, they can create a stronger organisation with a greater impact.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Existing_Companies\"><\/span><a><\/a>Existing Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A registered company can also promote a Section 8 company to carry out corporate social responsibility.<\/p>\n\n\n\n<p>Many companies are using this type of organisation to carry out their social responsibilities in various sectors,<\/p>\n\n\n\n<p><strong>such as:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Education<\/li>\n\n\n\n<li>Community development<\/li>\n\n\n\n<li>Healthcare etc<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Associations_or_Societies\"><\/span><a><\/a>Associations or Societies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Existing cooperative societies can be converted into a Section 8 company.<\/p>\n\n\n\n<p>This type of organisation can be adopted by many due to the following reasons:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Better credibility<\/li>\n\n\n\n<li>Better governance norms<\/li>\n\n\n\n<li>National recognition<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Minimum_Members_Required_to_Start_a_Section_8_Company\"><\/span><a><\/a>Minimum Members Required to Start a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Another common query is the minimum number of members required to form a company.<\/p>\n\n\n\n<p>It depends on the type of company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Private_Section_8_Company\"><\/span><a><\/a>Private Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>A private Section 8 company must have:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum 2 directors<\/li>\n\n\n\n<li>Minimum 2 members\/shareholders<\/li>\n<\/ul>\n\n\n\n<p>Most often, directors and members will be the same.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Public_Section_8_Company\"><\/span><a><\/a>Public Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A public Section 8 company must have:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum 3 directors<\/li>\n\n\n\n<li>Minimum 7 members<\/li>\n<\/ul>\n\n\n\n<p>Large non-profit organisations usually adopt this type of company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Section_8_Company_Registration\"><\/span><a><\/a>Eligibility Criteria for Section 8 Company Registration<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Along with the fact that any person can start a Section 8 company in India, the organization must also satisfy certain criteria of eligibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Charitable_or_Social_Purpose\"><\/span><a><\/a>Charitable or Social Purpose<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>The organisation must be for :<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Charity<\/li>\n\n\n\n<li>Education<\/li>\n\n\n\n<li>Social welfare<\/li>\n\n\n\n<li>Environment protection<\/li>\n\n\n\n<li>Promotion of art and science<\/li>\n<\/ul>\n\n\n\n<p>A license is granted by the government only if the purpose is clear.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Profit_Must_Not_Be_Distributed\"><\/span><a><\/a>Profit Must Not Be Distributed<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Section 8 company cannot distribute any kind of profit to its members\/directors.<\/p>\n\n\n\n<p>All the profit must be directed towards the cause.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transparent_Governance\"><\/span><a><\/a>Transparent Governance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The company must follow the proper compliance procedures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Financial records must be maintained.<\/li>\n\n\n\n<li>Annual returns must be filed.<\/li>\n\n\n\n<li>Board meetings must be conducted.<\/li>\n<\/ul>\n\n\n\n<p>These rules help to ensure accountability.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Benefits_of_Starting_a_Section_8_Company\"><\/span><a><\/a>Key Benefits of Starting a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are many reasons why many organisations choose this type of company formation. The main reasons are:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Strong_Legal_Recognition\"><\/span><a><\/a>Strong Legal Recognition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Section 8 company is registered with the <strong>Ministry of Corporate Affairs. <\/strong>Thus, they enjoy more credibility compared to non-registered societies or organisations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tax_Benefits\"><\/span><a><\/a>Tax Benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A Section 8 company can enjoy tax exemption under the Income Tax Act.<\/p>\n\n\n\n<p>However, they have to apply separately for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Registration under 12A<\/li>\n\n\n\n<li>Certification under 80G<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Better_Funding_Opportunities\"><\/span><a><\/a>Better Funding Opportunities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Donors and investors have more trust in Section 8 companies due to the compliance norms. Thus, they are more likely to get funding for their projects.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limited_Liability_Protection\"><\/span><a><\/a>Limited Liability Protection<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In a Section 8 company, the members of the company have limited liabilities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Documents_Required_to_Start_a_Section_8_Company\"><\/span><a><\/a>Documents Required to Start a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before starting the registration process, certain documents need to be aranged.<\/p>\n\n\n\n<p><strong>These include:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PAN cards of the directors<\/li>\n\n\n\n<li>Aadhaar cards or passports<\/li>\n\n\n\n<li>Address proofs<\/li>\n\n\n\n<li>Passport-size photographs<\/li>\n\n\n\n<li>Proof of address of the registered office<\/li>\n\n\n\n<li>Memorandum of Association (MOA)<\/li>\n\n\n\n<li>Articles of Association (AOA)<\/li>\n<\/ul>\n\n\n\n<p>Proper documentation is necessary to prevent delays in the approval process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cost_of_Starting_a_Section_8_Company_in_India\"><\/span><a><\/a>Cost of Starting a Section 8 Company in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Starting a <strong><a href=\"https:\/\/www.mylegalbusiness.com\/section-8-company-registration.php\">Section 8 company registration<\/a><\/strong> in India involves minimal costs. The costs include government filing fees, digital signatures of directors, and professional fees.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Expense Type<\/strong><\/td><td><strong>Estimated Cost (\u20b9)<\/strong><\/td><td><strong>Description<\/strong><\/td><\/tr><tr><td>Digital Signature Certificate (DSC)<\/td><td>\u20b91,000 \u2013 \u20b92,000 per director<\/td><td>Required for electronically signing documents during company registration.<\/td><\/tr><tr><td>Director Identification Number (DIN)<\/td><td>Included with incorporation<\/td><td>Unique identification number required for each director.<\/td><\/tr><tr><td>Name Reservation (RUN \/ SPICe+)<\/td><td>\u20b91,000<\/td><td>Fee paid to the Ministry of Corporate Affairs to reserve the company name.<\/td><\/tr><tr><td>Incorporation Filing Fees<\/td><td>\u20b91,000 \u2013 \u20b98,000<\/td><td>Fees paid to register the company and obtain the Certificate of Incorporation.<\/td><\/tr><tr><td>Professional \/ Legal Fees<\/td><td>\u20b95,000 \u2013 \u20b910,000<\/td><td>Charges for professionals who prepare documents and handle the filing process.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>However, if you wish to establish a non-profit organisation, it is advisable to seek professional advice to avoid any mistakes in the process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Basic_Steps_to_Register_a_Section_8_Company\"><\/span><a><\/a>Basic Steps to Register a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Understanding the registration process will help us understand who can form a Section 8 company in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Obtain_Digital_Signature_Certificate\"><\/span><a><\/a>Step 1: Obtain Digital Signature Certificate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All the directors of the company must obtain a Digital Signature Certificate (DSC).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Name_Approval\"><\/span><a><\/a><a><\/a>Step 2: Name Approval<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The proposed company name has to be approved by the Ministry of Corporate Affairs. Name can be filed in form Spice+ Part A. Name and incorporation can also be filed in single form. (form Spice + Part A and B)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Apply_for_Incorporation\"><\/span><a><\/a>Step 3: Apply for Incorporation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After the name approval, the next step is to file the incorporation application with the Ministry of Corporate Affairs through SPICe+ Part B along with the required documents. This includes details of directors, registered office address, and the company\u2019s MOA and AOA.<br>Once the application is verified and approved, the Certificate of Incorporation (COI) is issued, and the company becomes a legally recognised entity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_Mistakes_When_Starting_a_Section_8_Company\"><\/span><a><\/a>Common Mistakes When Starting a Section 8 Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There have been many delays in the incorporation of the company due to various mistakes that the applicants have made.<\/p>\n\n\n\n<p><strong>Some of the common mistakes that have been made by the applicants are:<\/strong><\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Choosing a company name that is similar to another company<\/li>\n\n\n\n<li>Incorrect documentation<\/li>\n\n\n\n<li>Lack of clarity in the objectives of the charitable company<\/li>\n\n\n\n<li>Incorrect classification of the company type<\/li>\n<\/ol>\n\n\n\n<p>Proper planning helps avoid these problems.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><a><\/a>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>So, <strong>who can form a Section 8 company in India?<\/strong> Well, the answer is quite simple. Anyone, be it individuals, groups, companies, or associations, can form a Section 8 company if they fulfil the legal criteria.<\/p>\n\n\n\n<p>The basic purpose of a Section 8 company is not to make profits but to serve society. This makes the company quite significant in society&#8217;s development.<\/p>\n\n\n\n<p>If you have plans of starting a non-profit business, then the formation of a Section 8 company can provide your non-profit business with legal recognition and credibility.<\/p>\n\n\n\n<p>The next step in the formation of a Section 8 company in India is the preparation of the documents and the registration process.<\/p>\n\n\n\n<p>Ready to start your non-profit organisation? <a href=\"https:\/\/www.mylegalbusiness.com\/\"><strong>MY LEGAL BUSINESS LLP<\/strong><\/a> can guide you through the smooth and swift registration of your Section 8 company. Reach out to us today for the registration of your Section 8 company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><a><\/a>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_single_person_incorporate_a_Section_8_company\"><\/span><a><\/a>Can a single person incorporate a Section 8 company?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>No. At least two members must be there for a section 8 company registration. A single person cannot incorporate a section 8 company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_foreigners_incorporate_a_Section_8_company_in_India\"><\/span><a><\/a>Can foreigners incorporate a Section 8 company in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes. Foreigners can be directors or members of the company. They must follow the provisions of the Companies Act while doing so.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_minimum_capital_that_must_be_present_for_a_Section_8_company\"><\/span><a><\/a>What is the minimum capital that must be present for a Section 8 company?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>No minimum capital is required. This provision has been removed by the government in order to encourage social organisations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_a_Section_8_company_better_than_a_trust\"><\/span><a><\/a>Is a Section 8 company better than a trust?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Yes. Many organisations prefer section 8 companies because they provide better governance and credibility, and better opportunities for funding.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote has-pale-cyan-blue-background-color has-background is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>ALSO READ<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/can-a-section-8-company-be-struck-off\/\"><strong>Can a Section 8 Company Be Struck Off<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/conversion-of-section-8-company-from-shares-to-guarantee\/\"><strong>Conversion of Section 8 Company From Shares to Guarantee<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/section-8-microfinance-company-in-india\/\"><strong>Section 8 Microfinance Company Registration<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/section-8-company-registration-process-step-by-step\/\"><strong>Section 8 Company Registration Process<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/benefits-of-section-8-company-registration-in-india\/\"><strong>Benefits of Section 8 Company Registration in India<\/strong><\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.mylegalbusiness.com\/blog\/registration-process-of-section-8-company-in-india\/\"><strong>Registration Process of Section 8 Company in India<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Who can start a Section 8 company in India? Learn eligibility, rules, and requirements for nonprofit registration and start your organisation today. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":913,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-section-8-company"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Who Can Start a Section 8 Company in India? Complete Guide<\/title>\n<meta name=\"description\" content=\"Who can start a Section 8 company in India? 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