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Section 8 Company Registration in India
Non-Profit Organization – Complete Guide, Documents & Compliance
As per Companies Act, 2013 | Ministry of Corporate Affairs (MCA)
Overview
Key Features
Eligibility
Documents Required
Registration Process
Post-Registration Compliance
FAQs
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013 for promoting charitable objectives such as education, social welfare, art, culture, environment, sports, and research.
The profits or income of a Section 8 Company are applied only for the promotion of its objectives and cannot be distributed as dividends.
Section 8 Companies are preferred over Trusts and Societies due to
higher credibility and better compliance structure.
Key Features of Section 8 Company
- Non-profit organization
- Separate legal entity
- No minimum capital requirement
- Exemption from using “Private Limited / Limited”
- Higher credibility with donors & government bodies
- Tax benefits (subject to 12A & 80G registration)
Eligibility & Minimum Requirements
- Minimum 2 Directors
- Minimum 2 Shareholders
- At least one director must be Resident in India
- Charitable object as defined under law
- No profit distribution allowed
Mandatory Documents for Section 8 Registration
| Category | Documents Required |
|---|---|
| Directors / Members |
PAN Card Aadhaar / Passport / Voter ID / Driving License Passport-size photograph Email ID & Mobile Number |
| Registered Office |
Electricity / Water / Gas Bill (≤ 2 months) Rent Agreement (if rented) Owner NOC |
| Legal Declarations |
INC-14 (Declaration by CA/CS/CMA) INC-15 (Declaration by Directors) Draft MOA & AOA (Non-profit clauses) |
| Digital & MCA |
Digital Signature Certificate (DSC) Director Identification Number (DIN) |
Step-by-Step Section 8 Company Registration Process
- Obtain DSC & DIN
- Name approval through SPICe+ Part A
- Prepare MOA & AOA with charitable objects
- Apply for Section 8 license
- File SPICe+ incorporation form
- Receive Certificate of Incorporation
⏱️ Estimated Timeline: 10–15 working days
Post-Registration Compliances
- Appointment of first auditor (ADT-1)
- Opening bank account
- Annual ROC filings (AOC-4 & MGT-7)
- Income Tax Return filing
- Apply for 12A & 80G registration (optional but recommended)
Non-compliance may result in cancellation of Section 8 license.
Frequently Asked Questions (FAQs)
- Is profit distribution allowed? – No.
- Is minimum capital required? – No.
- Is audit mandatory? – Yes, annually.
- Can foreign directors be appointed? – Yes, subject to FEMA.
- Is Section 8 better than Trust? – Yes, for credibility & governance.
Section 8 Company Registration in India
Non-Profit Organization – Complete Guide, Documents & Compliance
As per Companies Act, 2013 | Ministry of Corporate Affairs (MCA)
Overview
Key Features
Eligibility
Documents Required
Registration Process
Post-Registration Compliance
FAQs
A Section 8 Company is a non-profit organization registered under the Companies Act, 2013 for promoting charitable objectives such as education, social welfare, art, culture, environment, sports, and research.
The profits or income of a Section 8 Company are applied only for the promotion of its objectives and cannot be distributed as dividends.
Section 8 Companies are preferred over Trusts and Societies due to
higher credibility and better compliance structure.
Key Features of Section 8 Company
- Non-profit organization
- Separate legal entity
- No minimum capital requirement
- Exemption from using “Private Limited / Limited”
- Higher credibility with donors & government bodies
- Tax benefits (subject to 12A & 80G registration)
Eligibility & Minimum Requirements
- Minimum 2 Directors
- Minimum 2 Shareholders
- At least one director must be Resident in India
- Charitable object as defined under law
- No profit distribution allowed
Mandatory Documents for Section 8 Registration
| Category | Documents Required |
|---|---|
| Directors / Members |
PAN Card Aadhaar / Passport / Voter ID / Driving License Passport-size photograph Email ID & Mobile Number |
| Registered Office |
Electricity / Water / Gas Bill (≤ 2 months) Rent Agreement (if rented) Owner NOC |
| Legal Declarations |
INC-14 (Declaration by CA/CS/CMA) INC-15 (Declaration by Directors) Draft MOA & AOA (Non-profit clauses) |
| Digital & MCA |
Digital Signature Certificate (DSC) Director Identification Number (DIN) |
Step-by-Step Section 8 Company Registration Process
- Obtain DSC & DIN
- Name approval through SPICe+ Part A
- Prepare MOA & AOA with charitable objects
- Apply for Section 8 license
- File SPICe+ incorporation form
- Receive Certificate of Incorporation
⏱️ Estimated Timeline: 10–15 working days
Post-Registration Compliances
- Appointment of first auditor (ADT-1)
- Opening bank account
- Annual ROC filings (AOC-4 & MGT-7)
- Income Tax Return filing
- Apply for 12A & 80G registration (optional but recommended)
Non-compliance may result in cancellation of Section 8 license.
Frequently Asked Questions (FAQs)
- Is profit distribution allowed? – No.
- Is minimum capital required? – No.
- Is audit mandatory? – Yes, annually.
- Can foreign directors be appointed? – Yes, subject to FEMA.
- Is Section 8 better than Trust? – Yes, for credibility & governance.
Business Compliance & Filing Due Dates – India
Statutory Compliance Comparison with Last Dates (Indian Law)
Proprietorship
OPC
LLP
Private Limited
Section 8 Company
Proprietorship – Compliance & Due Dates
| Compliance | Applicability | Due Date |
|---|---|---|
| Appointment of Auditor (ADT-1) | Not Applicable | — |
| Issue of Share Certificates | Not Applicable | — |
| Business Bank Account | Required | At start of business |
| GST Registration | If applicable | Before crossing threshold |
| ROC Filings | Not Applicable | — |
| Income Tax Return (ITR-3 / ITR-4) | Mandatory | 31 July / 31 Oct |
Proprietorship is governed by Income-tax Act, not Companies Act.
One Person Company (OPC)
| Compliance | Applicability | Due Date |
|---|---|---|
| First Auditor (ADT-1) | Mandatory | Within 15 days of incorporation |
| Share Certificates | Mandatory | Within 60 days |
| Company Bank Account | Mandatory | Immediately after incorporation |
| GST Registration | If applicable | Before taxable supply |
| ROC Filing – AOC-4 | Mandatory | Within 180 days |
| ROC Filing – MGT-7A | Mandatory | Within 60 days |
| Income Tax Return (ITR-6) | Mandatory | 31 Oct |
Limited Liability Partnership (LLP)
| Compliance | Applicability | Due Date |
|---|---|---|
| Auditor Appointment | If applicable | Within 30 days |
| Share Certificates | Not Applicable | — |
| LLP Bank Account | Mandatory | Immediately after registration |
| GST Registration | If applicable | Before supply |
| Form 11 (Annual Return) | Mandatory | 30 May |
| Form 8 (Statement of Accounts) | Mandatory | 30 Oct |
| Income Tax Return (ITR-5) | Mandatory | 31 Oct |
Private Limited Company
| Compliance | Applicability | Due Date |
|---|---|---|
| First Auditor (ADT-1) | Mandatory | Within 15 days |
| Share Certificates | Mandatory | Within 60 days |
| Company Bank Account | Mandatory | Immediately after incorporation |
| GST Registration | If applicable | Before supply |
| AOC-4 (Financials) | Mandatory | Within 30 days of AGM |
| MGT-7 (Annual Return) | Mandatory | Within 60 days of AGM |
| Income Tax Return (ITR-6) | Mandatory | 31 Oct |
Section 8 Company (Non-Profit)
| Compliance | Applicability | Due Date |
|---|---|---|
| First Auditor (ADT-1) | Mandatory | Within 15 days |
| Share Certificates | Not Applicable | — |
| Company Bank Account | Mandatory | Immediately after incorporation |
| GST Registration | If applicable | Before taxable activity |
| AOC-4 | Mandatory | Within 30 days of AGM |
| MGT-7 | Mandatory | Within 60 days of AGM |
| Income Tax Return | Mandatory | 31 Oct (Even if Nil) |
Non-compliance may lead to cancellation of Section 8 license.
Business Compliance & Filing Due Dates – India
Statutory Compliance Comparison with Last Dates (Indian Law)
Proprietorship
OPC
LLP
Private Limited
Section 8 Company
Proprietorship – Compliance & Due Dates
| Compliance | Applicability | Due Date |
|---|---|---|
| Appointment of Auditor (ADT-1) | Not Applicable | — |
| Issue of Share Certificates | Not Applicable | — |
| Business Bank Account | Required | At start of business |
| GST Registration | If applicable | Before crossing threshold |
| ROC Filings | Not Applicable | — |
| Income Tax Return (ITR-3 / ITR-4) | Mandatory | 31 July / 31 Oct |
Proprietorship is governed by Income-tax Act, not Companies Act.
One Person Company (OPC)
| Compliance | Applicability | Due Date |
|---|---|---|
| First Auditor (ADT-1) | Mandatory | Within 15 days of incorporation |
| Share Certificates | Mandatory | Within 60 days |
| Company Bank Account | Mandatory | Immediately after incorporation |
| GST Registration | If applicable | Before taxable supply |
| ROC Filing – AOC-4 | Mandatory | Within 180 days |
| ROC Filing – MGT-7A | Mandatory | Within 60 days |
| Income Tax Return (ITR-6) | Mandatory | 31 Oct |
Limited Liability Partnership (LLP)
| Compliance | Applicability | Due Date |
|---|---|---|
| Auditor Appointment | If applicable | Within 30 days |
| Share Certificates | Not Applicable | — |
| LLP Bank Account | Mandatory | Immediately after registration |
| GST Registration | If applicable | Before supply |
| Form 11 (Annual Return) | Mandatory | 30 May |
| Form 8 (Statement of Accounts) | Mandatory | 30 Oct |
| Income Tax Return (ITR-5) | Mandatory | 31 Oct |
Private Limited Company
| Compliance | Applicability | Due Date |
|---|---|---|
| First Auditor (ADT-1) | Mandatory | Within 15 days |
| Share Certificates | Mandatory | Within 60 days |
| Company Bank Account | Mandatory | Immediately after incorporation |
| GST Registration | If applicable | Before supply |
| AOC-4 (Financials) | Mandatory | Within 30 days of AGM |
| MGT-7 (Annual Return) | Mandatory | Within 60 days of AGM |
| Income Tax Return (ITR-6) | Mandatory | 31 Oct |
Section 8 Company (Non-Profit)
| Compliance | Applicability | Due Date |
|---|---|---|
| First Auditor (ADT-1) | Mandatory | Within 15 days |
| Share Certificates | Not Applicable | — |
| Company Bank Account | Mandatory | Immediately after incorporation |
| GST Registration | If applicable | Before taxable activity |
| AOC-4 | Mandatory | Within 30 days of AGM |
| MGT-7 | Mandatory | Within 60 days of AGM |
| Income Tax Return | Mandatory | 31 Oct (Even if Nil) |
Non-compliance may lead to cancellation of Section 8 license.
Business Structure Comparison in India
LLP Formation vs OPC vs Private Limited vs Section 8 vs Proprietorship
Choose the right legal structure for your business based on ownership, liability, compliance, and growth plans.
| Criteria | Proprietorship | OPC | LLP | Private Limited | Section 8 Company |
|---|---|---|---|---|---|
| Legal Status | Not a separate legal entity | Separate legal entity | Separate legal entity | Separate legal entity | Separate legal entity |
| Number of Owners | 1 | 1 (with nominee) | Minimum 2 partners | Minimum 2 shareholders | Minimum 2 members |
| Liability | Unlimited | Limited | Limited | Limited | Limited |
| Minimum Capital | No requirement | No requirement | No requirement | No requirement | No requirement |
| Compliance Level | Very Low | Moderate | Low | High | High |
| Annual Audit | Not mandatory (below limits) | Mandatory | Conditional | Mandatory | Mandatory |
| Fund Raising | Not possible | Limited | Difficult | Easy (VC, Investors) | Donations / Grants only |
| Profit Distribution | Owner only | Owner only | Partners as per agreement | Dividend to shareholders | Not allowed |
| Taxation | As individual slab | Corporate tax | 30% + cess | Corporate tax | Exempt (with 12A/80G) |
| Ideal For | Small traders, freelancers | Solo entrepreneurs | Professionals, SMEs | Startups, scalable businesses | NGOs, charitable organizations |
Quick Guidance:
• Choose Proprietorship for very small or local businesses
• Choose OPC if you are a solo founder wanting limited liability
• Choose LLP for professional or partnership businesses
• Choose Private Limited for startups & growth-oriented companies
• Choose Section 8 for non-profit or charitable activities
• Choose Proprietorship for very small or local businesses
• Choose OPC if you are a solo founder wanting limited liability
• Choose LLP for professional or partnership businesses
• Choose Private Limited for startups & growth-oriented companies
• Choose Section 8 for non-profit or charitable activities
Business Structure Comparison in India
LLP Formation vs OPC vs Private Limited vs Section 8 vs Proprietorship
Choose the right legal structure for your business based on ownership, liability, compliance, and growth plans.
| Criteria | Proprietorship | OPC | LLP | Private Limited | Section 8 Company |
|---|---|---|---|---|---|
| Legal Status | Not a separate legal entity | Separate legal entity | Separate legal entity | Separate legal entity | Separate legal entity |
| Number of Owners | 1 | 1 (with nominee) | Minimum 2 partners | Minimum 2 shareholders | Minimum 2 members |
| Liability | Unlimited | Limited | Limited | Limited | Limited |
| Minimum Capital | No requirement | No requirement | No requirement | No requirement | No requirement |
| Compliance Level | Very Low | Moderate | Low | High | High |
| Annual Audit | Not mandatory (below limits) | Mandatory | Conditional | Mandatory | Mandatory |
| Fund Raising | Not possible | Limited | Difficult | Easy (VC, Investors) | Donations / Grants only |
| Profit Distribution | Owner only | Owner only | Partners as per agreement | Dividend to shareholders | Not allowed |
| Taxation | As individual slab | Corporate tax | 30% + cess | Corporate tax | Exempt (with 12A/80G) |
| Ideal For | Small traders, freelancers | Solo entrepreneurs | Professionals, SMEs | Startups, scalable businesses | NGOs, charitable organizations |
Quick Guidance:
• Choose Proprietorship for very small or local businesses
• Choose OPC if you are a solo founder wanting limited liability
• Choose LLP for professional or partnership businesses
• Choose Private Limited for startups & growth-oriented companies
• Choose Section 8 for non-profit or charitable activities
• Choose Proprietorship for very small or local businesses
• Choose OPC if you are a solo founder wanting limited liability
• Choose LLP for professional or partnership businesses
• Choose Private Limited for startups & growth-oriented companies
• Choose Section 8 for non-profit or charitable activities
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