A Section 8 company is a not-for-profit entity registered under the Companies Act, 2013 to promote charitable objects such as education, art, science, sports or social welfare. Its profits must be applied to its objects, not distributed to members.
This guide explains Section 8 company registration, benefits and compliance.
What is Section 8 Company (NGO) Registration in India?
Unlike a trust or society, a Section 8 company is regulated by the MCA and offers a more structured, credible framework for NGOs. It requires a licence under Section 8 before incorporation.
It can later obtain 12A and 80G registrations for income tax exemption and donor benefits.
Benefits
- High credibility with donors and grant agencies
- Separate legal identity and limited liability
- Eligible for 12A/80G tax benefits
- No minimum capital requirement
Frequently asked questions
What is the difference between a Section 8 company and a trust?
A Section 8 company is regulated by the MCA with stricter governance and higher credibility, while a trust/society is registered under separate state or trust laws.
Can a Section 8 company make a profit?
It can generate surplus, but that surplus must be used for its charitable objects and cannot be distributed to members.