Register your Section 8 Company in 20-25 days.
The most credible NGO structure in India. MCA-regulated, CSR-ready, FCRA-approvable, and preferred by corporate donors. INC-12 eliminated in 2019 — Section 8 license now issued directly via SPICe+ with your COI. We handle the whole stack: incorporation + 12AB + 80G + CSR-1 + Darpan.
- DSC for 2 directors
- DIN via SPICe+ (no separate INC-12 needed)
- MOA + AOA drafted for charitable objects
- SPICe+ filing → COI + CIN + Section 8 License
- PAN + TAN + Bank account coordination
- Post-incorporation 12AB + 80G roadmap
What is a Section 8 Company?
In one line: a non-profit company registered under Section 8 of the Companies Act, 2013 — the most credible NGO structure in India, regulated by MCA.
A Section 8 Company is a non-profit corporate structure under Section 8 of the Companies Act, 2013 (previously Section 25 of Companies Act 1956). It is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection.
Unlike a regular Pvt Ltd, all profits/income must be reinvested toward the stated charitable objectives. No dividends can be paid to members — this is the defining feature that distinguishes Section 8 from a for-profit company. Section 8(6) makes this permanent — you can't convert to a for-profit later.
The 2019 process simplification: the Companies (Incorporation) Sixth Amendment Rules 2019 eliminated Form INC-12 (effective 7 June 2019). Section 8 license is now issued directly through SPICe+ at incorporation, along with the CIN. Previously it was a 2-step application taking 40+ days.
Regulated by MCA (like any other company), which gives it the highest credibility among NGO structures. CSR givers, foreign donors, and government grant bodies strongly prefer Section 8 over Trusts and Societies.
Choose Section 8 if you're...
- You're starting an NGO with long-term ambitions and national visibility
- You want to receive CSR funds from corporates (Section 8 + CSR-1 combo is the gold standard)
- You plan to receive foreign donations (FCRA prefers Section 8 credibility)
- You want limited liability protection for directors — trusts and societies don't give this
- You want the most credible NGO structure — CSR givers, foreign donors, government prefer Section 8
- You're a school, hospital, research institute, or foundation with formal governance needs
Skip Section 8 if you're...
- You want a simple one-person charitable effort — a Trust is much easier
- You have a small local charitable group — a Society (Societies Act 1860) has lower compliance
- You want to pay yourself dividends or take out profits — Section 8 strictly prohibits this
- You want minimal MCA compliance — trusts/societies don't need MCA filings
- You plan to do commercial for-profit activity — Section 8 license can be revoked
- You're not sure about your charitable objectives long-term — MOA changes need Regional Director approval
6 real benefits of Section 8 Company
Not just "non-profit" — Section 8 is the credibility unlock for serious NGOs. Here's what it actually delivers.
Most Credible NGO Structure
Section 8 companies operate under MCA oversight, mandatory audit, and public filing. CSR givers, foreign donors, and government grant bodies prefer Section 8 over Trusts and Societies. Highest credibility rating among NGO structures in India.
Limited Liability Protection
Directors' personal assets are protected. Trust trustees and society office-bearers bear personal liability in many circumstances — Section 8 directors don't. Critical if your NGO signs contracts, hires staff, or handles donor funds.
Tax Exemption + Donor Benefits
12AB registration exempts your NGO's income from tax (if applied to charitable purpose). 80G certificate lets donors claim 50% deduction on donations. This makes fundraising 30-50% easier — donors literally save on their tax bill.
CSR + FCRA Ready
Section 8 + CSR-1 combo is what corporate CSR teams look for. With 12AB + 80G + CSR-1 + NGO Darpan in place, you become eligible to receive CSR contributions from any listed Indian company. FCRA lets you receive foreign donations legally.
Perpetual Succession
Unlike a Trust (which can end when trustee dies) or an unregistered society (which dissolves), a Section 8 Company continues perpetually. Directors change, mission continues. Ideal for institutional building — schools, hospitals, research bodies.
National Recognition
CIN + Section 8 License gives you nationwide recognition. Any bank, any donor, any government body immediately understands what you are. Trusts and societies vary by state — Section 8 is uniform across India.
Coming soon: the full Section 8 registration flow — in 2 minutes
See exactly what happens from WhatsApp document upload to COI + Section 8 License + 12AB/80G roadmap.
Flowchart: from idea to fully operational NGO
Every step. Gold = MOA/AOA drafting (where RD scrutiny happens). Amber = the critical 30-90 day credential stack. Green = final green-light.
Docs collected
WhatsApp us your charitable objects + director basics. Same-day review.
DSC + Name reservation
Class 3 DSC + video KYC. Name must reflect charitable purpose (Foundation, Trust, Association).
Charitable objects + INC-14/15
3-5 specific main objects. AOA with no-dividend clause. Declarations by CA/CS + subscribers.
Filed with RD
Full incorporation package filed. RD scrutinises charitable object clauses (stricter than Pvt Ltd).
Section 8 License issued
Your COI with 21-char CIN (containing "NPL" category) + Section 8 License. PAN + TAN. NGO exists.
12AB + 80G + Darpan + CSR-1
The critical NGO credential stack. Apply 12AB/80G within 60 days, Darpan + CSR-1 next. Fundraising unlocked.
Eligibility — 6 checkpoints
Documents you'll need
The unique-to-Section 8 documents are the charitable object drafting and INC-14 + INC-15 declarations. Everything else is standard MCA.
For each Director
- PAN Card (self-attested)
- Aadhaar Card (linked mobile)
- Passport-size colour photo
- Address proof (bank statement / utility bill < 2 months)
- DSC + Video KYC
For Registered Office
- Utility bill (electricity/water/gas) < 2 months
- Rent agreement (if premises rented)
- NOC from property owner for commercial use
- Property tax receipt (if owned)
- File INC-22 within 30 days for permanent office
Charitable Object Documents
- Proposed NGO name (must include "Foundation/Association/Society" etc.)
- Detailed charitable objects (2-5 main + 5-10 ancillary)
- Financial projections for first 3 years
- INC-14 declaration by CA/CS/CMA
- INC-15 declaration by each subscriber
Calculate your exact cost
No hidden fees. Configure incorporation + optional NGO credentials. Section 8 companies get reduced MCA fees compared to Pvt Ltd.
Section 8 Company vs Trust vs Society vs Pvt Ltd
Honest side-by-side. We'll never push Section 8 if a Trust or Society is a better fit for a small, local operation.
| Criteria | Section 8 | Trust | Society | Pvt Ltd |
|---|---|---|---|---|
| Governing law | Companies Act, 2013 | Indian Trusts Act, 1882 | Societies Registration Act, 1860 | Companies Act, 2013 |
| Regulator | MCA (Central) | Charity Commissioner (State) | Registrar of Societies (State) | MCA (Central) |
| Min members | 2 directors + 2 shareholders | 2 trustees | 7 members | 2 directors + 2 shareholders |
| Limited liability | ✓ Yes — best NGO structure | Trustees personally liable | Office-bearers may be liable | ✓ Yes |
| National recognition | ✓ Uniform across India | Varies by state law | State-specific | ✓ Uniform |
| CSR eligibility | ✓ Preferred by corporates | Yes (with CSR-1) | Yes (with CSR-1) | N/A (not NGO) |
| FCRA (foreign funds) | ✓ Highest approval rate | Yes but slower approval | Yes but slower approval | N/A |
| Can distribute profits | ✗ Strictly prohibited | ✗ Only for objects | ✗ Only for objects | ✓ Dividends allowed |
| Setup cost (pro) | ₹5,000 + govt fees | ₹3,499 + stamp duty | ₹4,499 + registrar fee | ₹6,499 |
| Setup time | 20-25 days | 10-15 days | 15-20 days | 10-14 days |
| Annual compliance | Highest (AOC-4 + MGT-7 + ITR-7 + audit) | Low (audit + ITR-7 if 12AB) | Moderate (annual return + audit) | Highest |
| Best for | Serious NGOs, foundations, schools, CSR-focused | Simple family charity, religious endowments | Local cultural/scientific groups | Commercial businesses |
6 registrations that make a serious NGO
Section 8 incorporation is just the foundation. A properly credentialed NGO has 6 layered registrations — each one unlocks a different fundraising channel.
Your first 30-90 days — non-negotiable actions
Getting the COI + Section 8 License is Day 0. Then the real work starts — 12AB + 80G within 60 days, Darpan + CSR-1 within 90. Delay these and fundraising stalls.
Appoint Statutory Auditor (ADT-1)
Section 8 companies MUST have a statutory auditor Day 1 like Pvt Ltd — no exemption for NGOs. First auditor appointed by board within 30 days.
ROC scrutiny if missedINC-22 for permanent office
File INC-22 within 30 days if you used a temporary communication address at incorporation. Confirms permanent registered office.
₹1,000/day penalty if lateApply for 12AB + 80G
CRITICAL: file Form 10A on income tax portal for 12AB (income tax exemption) and 80G (donor deduction). Both take 6-8 weeks. Cannot fundraise credibly without these.
12AB valid 5 years, renewableNGO Darpan + CSR-1
Register on NITI Aayog's Darpan portal (get 11-char DARPAN ID) — mandatory for government grants. Once 12AB+80G+Darpan done, file Form CSR-1 to receive CSR funds.
CSR-1 prerequisite: 12AB + 80G6 common Section 8 mistakes — and how to avoid them
In 10+ years of NGO practice, these are the top blunders. Getting them wrong = license revocation or lost donations.
Not applying for 12AB and 80G immediately
Registration alone doesn't give you tax benefits. Without 12AB, your NGO's income is taxable at 30%. Without 80G, donors get no deduction — killing donations. Most NGOs delay 12AB/80G for 6+ months and lose donation potential.
Vague charitable object clauses
MOA object clauses like "to work for social welfare" get rejected by RD. They're too broad and could cover for-profit activity. RD scrutiny for Section 8 is much stricter than Pvt Ltd.
Ignoring the "no dividend" AOA clause
Section 8 AOA must contain an explicit clause prohibiting distribution of profits/dividends to members. Missing this = MOA/AOA rejection. Standard Pvt Ltd AOA doesn't have it.
Trying to run commercial activity
Section 8 companies can generate revenue (from services, courses, etc.) but ALL profits must be reinvested toward charitable objectives. If you distribute profits, take dividends, or fund unrelated ventures, RD can revoke your license under Section 8(6).
Missing annual filings
Section 8 has the highest NGO compliance load: AOC-4 (financials) + MGT-7 (annual return) + ITR-7 (tax return) + statutory audit. Even zero-activity Section 8s must file. Penalty up to ₹1 lakh/year + directors' DIN deactivation.
Not applying for FCRA if planning foreign donations
FCRA (Foreign Contribution Regulation Act) requires prior registration to receive even ₹1 from foreign source. Normal FCRA needs 3-year track record; prior-permission route can be used earlier. Receiving foreign funds without FCRA = severe penalties + license revocation.
Pick your engagement
Just registration? Full NGO credential stack? Fractional foundation CFO? Match to your scale.
- DSC for 2 directors + DIN via SPICe+
- Charitable objects drafting (RD-ready)
- MOA + AOA with all Section 8 clauses
- INC-14 + INC-15 declarations
- SPICe+ filing → COI + CIN + License
- PAN + TAN
- Bank account coordination
- 12AB + 80G (separate)
- CSR-1 + Darpan + FCRA (separate)
- Everything in Standalone
- 12AB registration (income tax exemption)
- 80G certificate (donor deduction)
- NGO Darpan (NITI Aayog)
- CSR-1 filing (MCA CSR portal)
- Compliance calendar setup
- Annual filings for Year 1 (AOC-4 + MGT-7 + ITR-7)
- FCRA (if needed, separate)
- Everything in NGO Setup Bundle
- FCRA registration + annual filings
- CSR grant management + reporting
- Full statutory audit coordination
- Payroll for up to 25 staff
- Monthly MIS + trustee reporting
- Grant compliance + utilisation reports
Prefer a call back?
Leave your number and a good time — we call within business hours (Mon–Sat, 10 am–7 pm) about Section 8 Company.
Experienced team — reviewed by qualified professionals
The Tax Paramarsh desk
"Section 8 is misunderstood — most consultants stop at incorporation. But the incorporation is just Day 0 of a much longer credential-building journey. Real fundraising requires 12AB + 80G + CSR-1 + Darpan + (optionally) FCRA. We help NGOs — including village schools, free clinics, environmental non-profits — build the full stack. We draft deeds and objects clauses carefully, because we know exactly which charitable object language RD will scrutinise — and how to write it right."
What NGO founders say after credentialing with us
Common questions
Straight answers. Still curious? WhatsApp us anything.
What is a Section 8 Company?
A Section 8 Company is a non-profit organisation registered under Section 8 of the Companies Act, 2013 (previously Section 25 of Companies Act 1956). It is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, or environmental protection.
Key: all profits/income must be reinvested toward the stated objectives — NO dividends can be paid to members. This is the defining feature that distinguishes Section 8 from a regular Pvt Ltd. Regulated by MCA (like any other company), which gives it the highest credibility among NGO structures.
Section 8 Company vs Trust vs Society — which one?
Section 8 wins on: MCA regulation (highest credibility), limited liability for directors, national recognition, CSR/foreign donor preference, perpetual succession, uniform across India.
Trust wins on: simpler setup (2 trustees only), lower compliance, no MCA filings. Best for simple family charity or religious endowment.
Society wins on: minimal setup cost, state-level flexibility. Best for local cultural/scientific/literary groups without national aspirations.
Rule of thumb: aspire to receive CSR funds or FCRA foreign donations → Section 8. Small local charity → Trust or Society.
Do Section 8 Companies need INC-12?
NO — INC-12 was eliminated by the Companies (Incorporation) Sixth Amendment Rules, 2019 (effective 7 June 2019). Section 8 license is now issued directly through SPICe+ at the time of incorporation, along with the CIN. This dramatically simplified the process — previously it was a 2-step application taking 40+ days.
Can Section 8 have share capital?
Yes. Section 8 companies can be incorporated either with share capital or as a company limited by guarantee. Share capital gives more governance flexibility; guarantee is closer to classic non-profit structure. Most modern Section 8 companies use share capital with strict AOA restrictions on dividends. We advise based on your funding model.
Total cost for Section 8 Company registration in 2026?
₹7,500-15,000 all-in for a 2-director Section 8. Breakdown: (1) Our professional fee ₹5,000. (2) MCA fees ₹500-2,000 (reduced for Section 8 vs Pvt Ltd). (3) State stamp duty on MOA/AOA ₹500-2,000. (4) DSC ₹2,500 for 2 directors. (5) GST 18% on professional fee.
Higher than Trust (₹4-8k) or Society (₹5-10k), but Section 8 is the only structure that unlocks CSR + FCRA at scale.
Cost of 12AB + 80G registration separately?
Our fee: ₹5,000-8,000 for 12AB + 80G together. Government fee: nil (just online filing). Documentation load is substantial: 3-year activity report (or projections for new NGOs), audited financials, list of donors, activity photos. We handle all of it end-to-end.
Bundled into our NGO Setup Bundle (₹20,000) if you're starting fresh.
Annual compliance cost for Section 8?
₹18,000-35,000/year for a small Section 8 (turnover < ₹25L). Includes: statutory audit ₹8-15k, AOC-4 + MGT-7 filings ₹3-5k, ITR-7 ₹3-5k, DIR-3 KYC ₹500, CSR-1 amendments if needed ₹1k.
Highest annual compliance among NGO structures — because Section 8 is MCA-regulated, not state-regulated. Trade-off for the credibility.
Do you charge for RD clarifications during incorporation?
No. Up to 5 rounds of RD clarifications handled at no extra charge. Section 8 RD scrutiny is heavier than Pvt Ltd — we've got a template library of MOA clauses that pre-empt the most common objections.
How long does Section 8 registration take?
20-25 working days from complete documents. Breakdown: Day 1-3 (DSC + Video KYC), Day 4-7 (name approval via SPICe+ Part A), Day 8-12 (MOA/AOA drafting + INC-14 + INC-15), Day 13-18 (SPICe+ Part B + RD scrutiny), Day 19-25 (COI + CIN + Section 8 License issued).
Longer than Pvt Ltd (10-14 days) because charitable object clauses undergo stricter RD scrutiny.
Do all directors need to visit your office?
No. Entirely remote via WhatsApp, email, and video KYC. Both directors join a 15-min video call for DSC issuance. No physical meeting required.
When can I start fundraising?
Legally from Day 1 after incorporation. Practically: without 12AB + 80G, most donors won't contribute (no tax benefit). Realistic donation-raising starts once 80G comes through — typically Month 3-4 post-incorporation.
CSR funds require CSR-1 + 12AB + 80G + Darpan — realistic first CSR grant timeline is Month 5-6.
Can foreign nationals be directors?
Yes, but at least 1 director must be resident Indian (182+ days per FY, Section 149(3)). Foreign directors need apostilled passport + address proof + video KYC. Adds 3-5 days to incorporation timeline.
For FCRA-registered NGOs later on, foreign directors can raise scrutiny — consider this at incorporation.
What annual filings are needed?
Every Section 8 must file: (1) AOC-4 (financials) by 27 September, (2) MGT-7 (annual return) by 30 November, (3) ITR-7 (tax return) by 31 October, (4) Statutory audit report from CA, (5) DIR-3 KYC for each director by 30 September, (6) Form 10B if 12AB registered (audit report to income tax), (7) Annual return under FCRA if FCRA-registered.
All required even for zero-activity dormant Section 8s. Penalty up to ₹1 lakh/year.
What is 12AB and why do I need it?
Section 12AB of the Income Tax Act, 1961 (replaces old Section 12A post Finance Act 2020) grants income tax exemption to your NGO — provided income is applied for charitable purpose. Without 12AB, your NGO pays 30% tax on all surplus.
Valid 5 years, renewable. Application via Form 10A on income tax portal. Takes 6-8 weeks. First-time NGOs get "provisional" registration for 3 years, then "regular" registration for 5-year cycles.
What is 80G and how much can donors claim?
80G certificate lets donors claim tax deduction on donations to your Section 8. Standard deduction: 50% of donation amount (capped at 10% of donor's gross total income). Some specific categories (PM CARES, NDF etc.) allow 100% — but ordinary Section 8s get 50%.
80G is a huge fundraising unlock — donors literally save on their tax bill. Application via Form 10A alongside 12AB. Valid 5 years, renewable.
What is CSR-1 and when do I need it?
Form CSR-1 is filed on the MCA CSR portal to register your Section 8 as an eligible recipient of Corporate CSR contributions under Section 135 of the Companies Act, 2013.
Prerequisites: valid 12AB + 80G + NGO Darpan ID. Independent NGOs need 3-year track record (relaxed for company-founded NGOs). Once filed, permanent (no annual renewal). Unlocks access to ~₹25,000 crore of annual corporate CSR spending.
What is NGO Darpan and is it mandatory?
NGO Darpan is the NITI Aayog's portal for NGO registration. Every NGO gets an 11-character DARPAN ID which becomes its primary identifier for central government systems. Mandatory for: (1) applying to any central/state government grant, (2) FCRA registration, (3) filing CSR-1. Registration is free.
Not mandatory for private donations or ordinary operations. But strongly recommended — takes 15-30 days.
What is FCRA and do I need it?
Foreign Contribution (Regulation) Act, 2010 — mandatory registration for any NGO that wants to receive foreign contributions (even ₹1 from a foreign source). Regulated by Ministry of Home Affairs, not MCA.
Two routes: (1) Regular FCRA — requires 3-year track record, valid 5 years, renewable. (2) Prior permission — for one-time specific project, no track record needed. Timeline: 6-12 months. Highest compliance load among all registrations.
Can we convert Section 8 to Pvt Ltd later?
No — Section 8 companies cannot convert to for-profit structures. This is by design. Section 8(6) makes the "no dividend" nature permanent. If you want to run a for-profit business, incorporate a separate Pvt Ltd.
You CAN dissolve a Section 8 company via strike-off, but its assets must be transferred to another Section 8 company with similar objects — not distributed to members.
What triggers Section 8 license revocation?
Section 8(6) lets the Central Government revoke the license if the company: (1) is conducting business contrary to its stated objects, (2) has distributed profits/dividends to members, (3) has misused funds, (4) has failed to file mandatory returns for 3+ years, (5) has been convicted of specific offences.
Post-revocation, the company must add "Limited" to its name and pay full corporate tax on past exemption. Rare but serious — avoid by staying compliant.
Let's incorporate your Section 8 Company in the next 25 days.
WhatsApp us your charitable objects and director basics. A senior advisor will send you the exact checklist, RD-tested MOA templates, and a locked written quote. Zero sales scripts, zero pressure.