What is a Section 8 Company?
A Section 8 Company is a legal entity that operates for charitable purposes without any intention of distributing profits to its members. It is regulated by the Ministry of Corporate Affairs (MCA) and enjoys various tax and regulatory benefits from the Government of India.
Such companies are commonly set up by NGOs, trusts, and individuals or groups who are keen to work in the fields of education, poverty alleviation, environment, animal welfare, and other social causes. In Haryana, these entities are instrumental in facilitating social development and attracting CSR funds from corporates.
Eligibility Criteria for Section 8 Company Registration in Haryana
To apply for a Section 8 Company Registration in Haryana, the following eligibility criteria must be fulfilled:
Objective: The company must have a charitable purpose such as promotion of education, science, arts, sports, environmental protection, social welfare, etc.
Profit Distribution: The company must not distribute its profits among its members; all income must be used to achieve the stated objectives.
Minimum Members: At least 2 directors and 2 shareholders (for a private company) or 3 directors and 7 shareholders (for a public company).
Resident Director: At least one director must be an Indian resident.
No Minimum Capital Requirement: There is no minimum capital requirement, though appropriate funding should be shown to meet proposed objectives.
PAN and Aadhaar: KYC documents including PAN and Aadhaar are mandatory for Indian nationals.
Benefits of Section 8 Company Registration in Haryana
To register a Section 8 Company Registration in Haryana offers numerous advantages. Here’s a deep dive into the key benefits:
Separate Legal Entity
Once registered, a Section 8 Company becomes a distinct legal entity under the Companies Act, 2013. This status allows the company to:
- Own assets and liabilities in its own name
- Enter into contracts independently
- Protect members/directors from personal liability
- Operate continuously, regardless of changes in leadership (perpetual succession)
This legal identity enhances credibility when applying for grants, loans, or signing MOUs with government or private stakeholders.
Limited Liability Protection
The liability of directors and members is limited to the extent of their shareholding or guarantee. This means:
- Personal assets of directors are protected
- Encourages professionals and philanthropists to contribute without financial risk
- Enhances investor/donor confidence
Especially useful when executing high-risk or long-term social projects.
No Minimum Capital Requirement
Unlike private or public companies, there is no mandatory minimum capital requirement for a Section 8 Company.
- Capital can be introduced as per project need
- More accessible for small grassroots initiatives or individual founders
- Flexibility in funding allows focus on social impact, not financial structuring
Ideal for starting with small pilot projects in rural or underdeveloped regions of Haryana.
Tax Benefits Under Income Tax Act
After incorporation, a Section 8 Company can apply for tax exemptions under:
- Section 12AB: Grants income tax exemption on surplus income if used for charitable objectives.
- Section 80G: Enables donors to claim tax deductions on their contributions.
Makes the company and its donors financially efficient. Also improves donor confidence in funding.
Eligibility for CSR Funding
Section 8 Companies are preferred entities for receiving Corporate Social Responsibility (CSR) funds under Section 135 of the Companies Act.
- Mandatory for large companies to spend 2% of profits on CSR
- NGOs/Section 8 Companies in Haryana can partner with corporates in Gurugram, Faridabad, Sonipat, etc.
- CSR funds can be used for education, health, skilling, women empowerment, and sustainability programs
Many corporates prefer working with Section 8 Companies due to structured governance and auditability.
Government Scheme Access
Haryana Government provides direct and indirect funding/support to registered Section 8 Companies under schemes such as:
- Haryana CSR Trust (HSRT): Partners with registered NGOs to fund state-specific projects
- Haryana Skill Development Mission (HSDM): Offers grants for technical/vocational training projects
- Social Justice and Empowerment Grants: Supports marginalized community development programs
- Mahila Samriddhi Yojana & Beti Bachao Programs: Section 8 Companies promoting gender equity can avail grants
Being registered makes your organization eligible to participate in official tenders, empanelment, and financial aid.
Credibility and Recognition
Section 8 Companies are governed by the stringent rules of the Companies Act and Ministry of Corporate Affairs (MCA), making them:
- More reliable than informal organizations like societies/trusts
- Subject to regular audits and filings, enhancing transparency
- Better suited for collaborations with government, UN agencies, embassies, and corporates
Improves chances of securing long-term partnerships, FCRA approval, and international funding.
Exemptions on Stamp Duty
Section 8 Companies are exempted from paying stamp duty on the Memorandum of Association (MOA) and Articles of Association (AOA), unlike regular companies.
- Saves costs during incorporation
- Reduces upfront compliance burden
Makes registration more cost-effective, especially for startups or individual-led NGOs.
Documents Required for Section 8 Company Registration in Haryana
Here’s a list of documents needed for Section 8 Company Registration in Haryana:
For Directors and Shareholders:
PAN Card (mandatory for Indian citizens)
Aadhaar Card/Voter ID/Passport/Driving License
Passport (for foreign nationals)
Passport-sized photographs
DIN (Director Identification Number)
DSC (Digital Signature Certificate)
For Registered Office:
Latest utility bill (Electricity/Water/Gas/Phone)
Rent Agreement (if rented)
NOC from the property owner
Step-by-Step Process for Section 8 Company Registration in Haryana
Follow these steps to complete Section 8 Company Registration in Haryana:
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
You’re now legally registered and ready to operate as a not-for-profit in Haryana.
Government Schemes & Policies for NGOs/Section 8 in Haryana
Haryana CSR Advisory Board Support
Collaboration opportunities with corporates for CSR funding.
Haryana State Council for Child Welfare (HSCCW) Grants
State-level schemes for child welfare activities by NGOs.
Haryana Women Development Corporation Grants
Fundings for women empowerment initiatives.
Haryana State Rural Livelihood Mission (HSRLM)
Support for rural development and SHG based projects.
Startup Haryana – Support for Social Startups
Support for Section 8 Companies working as social startups.
State-Specific Schemes Supporting for Section 8 Company Registration in Haryana
Haryana CSR Trust (HSRT)
- Platform to receive CSR funds from corporates.
- Section 8 Companies can submit projects in education, health, skill development, etc.
- Transparent portal: csrtrustharyana.in
Haryana Skill Development Mission (HSDM)
- Partner with HSDM to run skill training programs.
- Access funding under state and central schemes like PMKVY.
- Website: hsdm.org.in
Social Justice & Empowerment Dept.
- Grants for NGOs working with senior citizens, women, SC/ST, and the disabled.
- Apply via department portal: sje.haryana.gov.in
Women & Child Development (WCD) Haryana
- Funding for child care centers, women help desks, and awareness drives.
- Opportunities under Beti Bachao, Beti Padhao initiatives.
- Website: wcdhry.gov.in
Pollution Control Board (HSPCB)
- Collaborate on green initiatives: waste management, tree plantations, awareness campaigns.
- Ideal for environment-focused Section 8 Companies.
District-Level NGO Support
- DC offices offer local funds and CSR partnerships for small-scale projects.
- Submit proposals for sanitation, women’s safety, health camps, etc.
Startup Haryana – Social Enterprise Support
- Section 8 Companies with social innovation can avail mentorship, co-working spaces, and exposure.
- Portal: startupharyana.gov.in
Comparison of Section 8 with NGO Trust & Society
When setting up a Non-Profit Organization (NPO) in India, the three most common legal structures are:
- Section 8 Company (under Companies Act, 2013)
- Trust (under Indian Trusts Act, 1882)
- Society (under Societies Registration Act, 1860)
| Particulars | Section 8 Company | Trust | Society |
|---|---|---|---|
| Governing Law | Companies Act, 2013 | Indian Trusts Act, 1882 (or state laws) | Societies Registration Act, 1860 |
| Registration Authority | Registrar of Companies (ROC) | Sub-Registrar | Registrar of Societies |
| Objective | Promotion of charitable, educational, religious, social welfare activities | Charitable/Religious/Private Purposes | Literary, Scientific, or Charitable Purposes |
| Jurisdiction | National (recognized across India) | State-based | State-based |
| Operational Scope | Pan-India | Restricted unless registered in multiple states | Restricted unless registered in multiple states |
| Legal Entity Status | Separate Legal Entity | Not a separate legal entity | Not a separate legal entity |
| Minimum Members | 2 (Private) / 3 (Public) | Minimum 2 Trustees | Minimum 7 Members |
| Management | Board of Directors | Board of Trustees | Governing Body/Managing Committee |
| Control & Governance | Strictly governed under Companies Act | Flexible, per Trust Deed | As per Society’s By-laws |
| Audit Requirements | Mandatory Annual Audit | If registered as charitable, required for tax exemptions | Required if availing government grants |
| Annual Filings | Mandatory with ROC | Not mandatory (unless required under state laws) | Annual filing with Registrar of Societies |
| Transparency & Public Disclosure | High | Moderate | Low |
| Tax Exemptions (80G/12AB) | Eligible | Eligible | Eligible |
| CSR Funding Eligibility | High | Medium | Medium |
| Foreign Funding (FCRA) Eligibility | High | Medium | Medium |
| Compliance Burden | High | Low | Medium |
| Preferred by | Corporates, NGOs seeking credibility, international donors | Religious, charitable family trusts | Social & cultural groups, local welfare bodies |
Post-Incorporation Compliance for Section 8 Company Registered in Haryana
Maintaining compliance post-incorporation is crucial to avoid penalties and to continue enjoying tax benefits:
INC-20A
Declaration of commencement of business within 180 days. (Mandatory for Section 8 Companies with capital only)
MGT-7:
Annual return with company details (due 60 days after AGM).
AOC-4:
Financial statements (due 30 days after AGM).
DIN KYC:
Annual KYC of directors by Sept 30.
Income Tax Return (ITR):
File ITR annually to retain tax exemptions.
Latest Government Initiatives Beneficial for Haryana NGOs (2025 Updates)
Haryana Skill Development Mission
Projects for skill training and livelihood promotion.
Beti Bachao Beti Padhao Initiative
Collaboration opportunities for NGOs in gender sensitization programs.
Startup Haryana Social Enterprise Category
Special support for Section 8 Companies promoting innovation for social change.
Frequently Asked Questions (FAQs) on Section 8 Company registration in Haryana
What is a Section 8 Company?
A non-profit organization registered under the Companies Act, 2013 to promote charitable, educational, religious, or environmental causes. Section 8 Company Registration in Haryana allows entities to work across various sectors while enjoying several tax and regulatory benefits.
Can a Section 8 Company be converted into a Private Limited Company?
No, conversion is not allowed.
Is there a minimum capital requirement?
No, Section 8 Companies do not have a minimum capital requirement.
Is it mandatory to register under NGO Darpan after incorporation?
Yes, especially if you plan to apply for government funding after Section 8 Company Registration in Haryana.
Can foreign nationals be directors?
Yes, but at least one Indian director is mandatory.
Can Section 8 Company generate profit?
Yes, but profits must be utilized for the company’s objectives.
What is the validity of Section 8 License?
The license is valid for a lifetime unless it is revoked due to non-compliance. This applies to all entities undergoing Section 8 Company Registration in Haryana.
How many directors are required?
Minimum two for a private limited; three for a public limited Section 8.
What is the timeline for incorporation?
Usually 15–20 working days.
Is audit compulsory for Section 8 Companies?
Yes, under the Companies Act.
Can a Section 8 Company own property?
Yes, after Section 8 Company Registration in Haryana, the entity can own property in its own name.
Is 12AB Registration mandatory?
Yes, for income tax exemption.
Can a Section 8 Company receive CSR Funds?
Yes, with proper compliance.
Can Section 8 Company carry business activity?
Only if incidental to its objectives.
Do Section 8 Companies need GST Registration?
Yes, if they cross the GST threshold or engage in taxable activities, even after Section 8 Company Registration in Haryana.
What is the penalty for non-compliance?
Penalties under Companies Act, including license revocation.
Are there specific schemes for NGOs in Haryana?
Yes, like HSRLM, Women Welfare, and CSR Board initiatives.
Can Section 8 receive donations?
Yes, with proper compliance.
Is FCRA registration required for foreign funds?
Yes, it’s mandatory for receiving foreign contributions.
Can Haryana-based NGOs work outside the state?
Yes, once Section 8 Company Registration in Haryana is completed, your NGO can operate nationwide.