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The Classic Partners LLP · Company Registration

Section 8 Company Registration

Incorporating a non-profit company under Section 8 of the Companies Act, 2013, for charitable, educational, social welfare or similar objects, without the restrictions of a trust or society structure.

Quick answer

A Section 8 company is a limited company formed to promote charitable objects such as education, art, science, sports, social welfare, or environmental protection, and it must apply its profits, if any, only towards its objects, with a licence granted by the Registrar of Companies before incorporation. It cannot pay dividends to its members and offers a more structured, corporate form of governance compared to a trust or society, which many donors and grant-making bodies prefer.

What we cover

What our Section 8 company registration service covers

Licence approval and incorporation, then the tax registrations that unlock donations.

  • Drafting the memorandum of association setting out charitable objects that satisfy Section 8 requirements
  • Applying for the Section 8 licence from the Registrar of Companies before incorporation
  • Filing SPICe+ incorporation once the licence is granted
  • Applying for 12AB registration for income tax exemption on the company's income
  • Applying for 80G registration so donors can claim a deduction on their contributions
  • Advising on FCRA registration where the company intends to receive foreign contributions
Key components

What separates a Section 8 company from a trust or society

The governance features that donors and regulators look for.

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Section 8 Licence

A prior licence from the Registrar of Companies confirming the objects are genuinely charitable before the company can be incorporated.

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No Dividend Distribution

All profits and income must be applied only towards the stated objects; no dividend can be distributed to members.

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Corporate Governance

A board of directors, statutory registers and Companies Act filings give a level of structure that many institutional donors and CSR funders prefer over a trust.

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12AB & 80G

Separate registrations under the Income Tax Act that exempt the company's income and make donations tax-deductible for donors.

How we work

Our process

From initial consultation to completion.

1

Objects & Licence Application

Drafting charitable objects and applying for the Section 8 licence with the required declarations.

2

SPICe+ Incorporation

Incorporating the company once the licence is granted, along with MOA and AOA reflecting the licence conditions.

3

Tax Registrations

Applying for 12AB and 80G registration under the Income Tax Act.

4

Ongoing Compliance Setup

Setting up ROC annual filings, CSR-1 registration if applicable, and FCRA where relevant.

Why choose us

Why Section 8 companies lose exemption status

What sets our approach apart.

Objects drift from what was licensed

Activities that go beyond the objects stated in the licence risk the company's tax exemption and, in serious cases, the Section 8 licence itself.

12AB is now a renewal-based regime, not a one-time approval

The current registration under Section 12AB has a fixed validity and must be renewed before expiry, and a lapse breaks the exemption chain.

CSR funding often requires CSR-1 registration first

Companies wanting to receive corporate social responsibility funding must be registered on Form CSR-1 with the Ministry of Corporate Affairs before funds can be accepted.

FAQs

Section 8 Company Registration questions answered

What people ask before engaging us.

Yes, a Section 8 company can earn profits from its activities, but the profits must be applied only towards promoting its charitable objects and cannot be distributed as dividends to members.
A Section 8 company is governed by the Companies Act with corporate-style governance and Registrar oversight, a trust is governed by the Indian Trusts Act or the relevant state Public Trusts Act, and a society is governed by the Societies Registration Act; the choice affects governance structure, ease of amendment, and donor perception.
No, incorporation as a Section 8 company alone does not grant tax exemption; the company must separately apply for and obtain registration under Section 12AB of the Income Tax Act to claim exemption on its income.
A Section 8 company can receive foreign contributions only after obtaining registration or prior permission under the Foreign Contribution (Regulation) Act, commonly referred to as FCRA registration.

Setting up a non-profit as a Section 8 company?

We handle the licence application, incorporation, and 12AB/80G registration end to end.

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