Section 8 Company Registration in Bangalore
A Section 8 Company is a non-profit entity in India governed by Section 8 of the Companies Act, 2013. It is regulated by the Ministry of Corporate Affairs (MCA) and operates with the principal objective of promoting charitable causes such as education, social welfare, healthcare, culture, and environmental protection. Unlike traditional companies, Section 8 Companies do not distribute profits among their members; instead, they reinvest in the organization's social mission.
Bangalore, known as the Silicon Valley of India, also boasts a vibrant social entrepreneurship ecosystem. With its progressive policies, technological infrastructure, and support for innovation, the city is an ideal hub for NGOs and NPOs. Karnataka’s government promotes various schemes like the Karnataka Skill Development Scheme (Kaushalya Karnataka), Rajiv Gandhi Rural Housing Corporation, and Environmental Awareness Programs, creating a favorable environment for establishing a Section 8 Company in Bangalore.
Key Requirements for Section 8 Company Registration in Bangalore
To register a Section 8 Company in Bangalore, you need to meet the following criteria:
Minimum Two Directors: At least one director must be a resident of India.
Minimum Two Shareholders: Directors can also act as shareholders.
No Capital Requirement:There is no prescribed minimum capital for registration.
Registered Office in Bangalore: A valid address proof such as an electricity bill is required.
No Objection Certificate (NOC): Must be obtained from the owner of the registered office premises.
Unique Name:The company name must not be identical or too similar to an existing company or registered trademark.
The registered office must be in Bangalore, and local regulations may require additional verification, such as a rental agreement or municipal tax receipt.
Benefits of Section 8 Company Registration in Bangalore
Registering a Section 8 Company in Bangalore offers numerous advantages. Here’s a detailed look at the key benefits:
Tax Exemptions
Section 8 Companies are eligible for income tax exemptions under Sections 12A and 80G of the Income Tax Act. Donors can claim deductions, making it easier to raise funds. This complements Karnataka’s support for education, healthcare, and environmental initiatives under schemes like Karnataka Social Security Mission and State Scholarship Programs.
Credibility and Recognition
Being registered under the Companies Act, 2013 ensures transparency, structured governance, and regulatory compliance. NGOs operating as Section 8 Companies enjoy high levels of public trust across Bangalore’s tech-driven and socially aware communities.
Access to Funding
Bangalore-based NGOs can access CSR funds, foreign contributions under FCRA, and government grants through initiatives like Karnataka State Council for Science and Technology, Rajiv Gandhi University of Health Sciences CSR programs, and Startup Karnataka grants for social enterprises.
Structured Governance
Section 8 Companies follow formal governance frameworks with mandatory board meetings, statutory filings, and audits, promoting accountability and better stakeholder engagement.
Collaborations with Government Initiatives
Section 8 Companies in Bangalore can collaborate seamlessly with government-backed schemes like Karnataka Skill Development Corporation (KSDC), Environmental Management and Policy Research Institute (EMPRI), and Mahila Samakhya Karnataka, gaining access to infrastructure and funding support.
Simple Online Filing
The MCA SPICe+ portal allows easy online incorporation, reducing paperwork and eliminating the need for physical visits to government offices.
Documents Required for Section 8 Company Registration in Bangalore
Here are the documents required for Section 8 Company Registration in Bangalore:
For Directors and Members:
Passport-size photographs
PAN card copy
Aadhaar Card / Voter ID / Driving License / Passport
Bank Statement / Utility Bill (Not older than 2 months)
For Registered Office:
Latest Electricity / Water / Gas Bill (With Bangalore Address)
NOC from Property Owner
Rent Agreement (if applicable)
Step-by-Step Process for Section 8 Company Registration in Bangalore
Follow these steps to complete Section 8 Company Registration in Bangalore:
Obtain DSC (Digital Signature Certificate)
Get DSCs for all directors from MCA-approved vendors using KYC documents.
Name Reservation - SPICe+ Part A
Choose a unique name (e.g., “Foundation,” “Forum,” “Association”) and file SPICe+ Part A for approval. (Can be directly applied in SPICe+ Part B)
Draft MOA and AOA
We help draft and file the Memorandum of Association (MOA) and Articles of Association (AOA) aligned with your social mission.
File SPICe+ Part B
File incorporation documents (including KYC, MOA, AOA, address proof, declarations, and utility bills) via the MCA portal.
Obtain License and Incorporation Certificate
On approval, you will receive:
- Section 8 License
- Certificate of Incorporation (COI)
- PAN and TAN
State-Specific Schemes Supporting Section 8 Company Registration in Bangalore
Section 8 Companies in Bangalore can benefit significantly by aligning with Karnataka’s progressive schemes and welfare initiatives. Here are some key state-sponsored programs that support social impact and non-profit missions:
Karnataka Skill Development Corporation (KSDC)
A flagship initiative to equip youth and women with industry-relevant skills and enhance employability. Section 8 Companies can collaborate in running skill development centers, especially in rural and underserved urban areas.
Udyogini Scheme
A women-centric scheme offering financial support and training for self-employment. NGOs focusing on women empowerment and entrepreneurship can access funding and support under this program.
Grama Vikasa Yojana (Rural Development Program)
This program focuses on building rural infrastructure, improving sanitation, and promoting digital education. Section 8 Companies involved in rural upliftment can tie up for implementation and CSR-based funding.
Pre-Matric & Post-Matric Scholarship Scheme (Karnataka)
The Department of Social Welfare in Karnataka offers scholarships to SC/ST/OBC students to pursue education without financial constraints. Educational NGOs can collaborate to promote access, awareness, and disbursement facilitation.
Arogya Karnataka
A universal health coverage scheme aimed at providing affordable and quality healthcare services to all. Section 8 Companies working in health awareness, preventive care, or rural health delivery can partner with the scheme for greater outreach.
Karnataka Schemes Supporting Section 8 Companies Registration in Bangalore
| Scheme Name | Objective |
|---|---|
| Karnataka Skill Development Corporation (KSDC) | Vocational training and employment for youth and women |
| Udyogini Scheme | Women empowerment and entrepreneurship support |
| Grama Vikasa Yojana | Rural development, sanitation, and infrastructure |
| Karnataka Scholarship Schemes | Financial aid for SC/ST/OBC students |
| Arogya Karnataka | Affordable health services and insurance coverage |
By aligning your Section 8 Company registration in Bangalore with these schemes, you can unlock access to government grants, CSR partnerships, and impactful collaboration opportunities.
Detailed Comparison of Trust, Society, and Section 8 Company in Uttar Pradesh
| Criteria | Trust | Society | Section 8 company |
|---|---|---|---|
| Governing Law | Indian Trust Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 (National Law) |
| Registration Authority | Sub-Registrar (under Revenue Department, Karnataka) | Registrar of Societies (Department of Cooperation, Karnataka) | MCA via Central Registration Centre (CRC), Manesar |
| Main Documents | Trust Deed | Memorandum and Rules & Regulations (By laws) | MOA and AOA |
| Minimum Members | 2 trustees | Minimum 7 managing committee members | Minimum 2 directors and shareholders |
| Legal Status | Not a separate legal entity | Not a complete legal entity, but recognized | Separate legal entity under Companies Act |
| Jurisdiction for Operations | Operates primarily within the state unless specified otherwise | Typically state-level unless registered nationally | Can operate across India from day one |
| Online Registration Facility | Physical submission only | Physical submission with Registrar in Karnataka | Fully online via MCA SPICe+ |
| Ease of Formation | Simple and quick | Moderate | Detailed & MCA-regulated but efficient |
| Compliance Requirements | Low, mostly for tax benefits like 80G/12A | Moderate, includes annual meeting and statement filing | High – Annual return (MGT-7), Financials (AOC-4), DIN KYC, ITR |
| Tax Benefits (80G/12A) | Possible but harder to obtain due to lack of regulatory scrutiny | Possible with regular filings and inspections | Easily available, streamlined via MCA compliance |
| Audit Requirement | Mandatory if claiming 80G/12A or receiving government grants | Required for 80G/12A; optional otherwise | Mandatory audit annually under Companies Act |
| FCRA Eligibility | Rarely preferred due to low transparency | Possible but slow due to manual records | Highly preferred due to MCA registration and clear audit trails |
| Transparency Level | Low - Limited public scrutiny | Medium - Registered documents available with Registrar | High -Public records on MCA portal ensure credibility |
| Perpetual Succession | Not assured unless clearly written in the Trust Deed | Exists but dependent on society rules | Guaranteed under Companies Act, continues irrespective of changes in members |
| Governance Structure | Trustees with discretionary power | Governing Body or Executive Committee elected by members | Board of Directors with defined responsibilities and reporting structure |
| Grants and State Funding Access | Limited -Often excluded due to lack of structured operations | Available but delayed due to bureaucratic approvals | Preferred -State and CSR bodies favor Section 8 Companies |
| Public Perception | Informal - Suitable for small family-run or spiritual activities | Semi-formal - Better for community initiatives | Highly credible - Suitable for large-scale NGO operations |
| Conversion Possibility | Cannot convert into other forms easily | Can be converted into Section 8 Company with due process | Can convert to other companies with ROC approval |
| Ideal For | Spiritual, religious, family-run charities | Local clubs, cooperative groups, educational societies | Professional NGOs, large-scale CSR projects, social enterprises |
| Compliance Cost | Low | Moderate | Higher due to professional filing and audit requirements |
Post-Incorporation Compliance for Section 8 Company Registration in Bangalore
After successful incorporation, Section 8 Companies in Bangalore must comply with the following mandatory post-registration filings and formalities:
INC-20A
Must be filed within 180 days of incorporation. (Applicable only if the Section 8 Company is registered with share capital).
MGT-7 - Annual Return
Must be filed within 60 days from the date of the Annual General Meeting (AGM), detailing company structure and compliance.
AOC-4 - Filing of Financial Statements
Due within 30 days after the AGM, this includes the company’s balance sheet, profit and loss account, auditor’s report, etc.
DIN KYC - Director KYC
Every director must complete annual KYC by September 30 to keep their DIN active.
Income Tax Return (ITR):
Filing ITR annually is essential to retain tax exemptions under 12A and 80G, and
Frequently Asked Questions about Section 8 Company Registration in Bangalore
How long does it take for Section 8 Company registration in Bangalore?
With proper documentation, Section 8 Company registration in Bangalore takes around 7-10 working days.
Do I need a physical office in Bangalore?
Yes, to proceed with Section 8 Company registration in Bangalore, you must have a registered office address within the city. Address proof is mandatory during incorporation.
Can foreigners be directors in a Bangalore-based Section 8 Company?
Yes, foreigners can serve as directors in a Section 8 Company registered in Bangalore, but at least one director must be an Indian resident as per MCA regulations.
What is the cost of registration?
The cost of Section 8 Company registration in Bangalore includes professional fees, DSC charges, and government filing fees. Our all-inclusive packages are affordable and transparent.
Can a Section 8 Company in Bangalore receive foreign donations?
Yes, after obtaining FCRA registration from the Ministry of Home Affairs, your Section 8 Company in Bangalore can legally receive donations from foreign sources.
Is it mandatory to have an office in Bangalore to register a Section 8 Company there?
Yes, a Bangalore-based registered office is mandatory. You’ll need to submit a utility bill and NOC from the property owner for successful Section 8 Company registration in Bangalore.
Can I convert my existing Society or Trust in Bangalore into a Section 8 Company?
- A Society in Bangalore can be converted into a Section 8 Company through legal procedures.
- A Trust cannot be directly converted and must be freshly incorporated as a new Section 8 Company in Bangalore.
What are the advantages of getting 12A and 80G registration in Bangalore?
Once Section 8 Company registration in Bangalore is complete, obtaining 12A provides income tax exemption, and 80G attracts more donors by offering tax deductions. These are essential for organizations targeting CSR funding and state grants.
Do I need to renew my Section 8 license or registration?
The Section 8 Company license is valid for life. However, 12A and 80G registrations must be renewed periodically to maintain tax benefits and compliance.
Can a Section 8 Company in Bangalore open branches in other states?
Yes, after completing Section 8 Company registration in Bangalore, the company is allowed to operate across India, provided it passes a board resolution and files necessary updates with the ROC.