Section 8 Company Registration
Do you want to start an NGO, Non-Profit Organization, Trust, or Charity with legal recognition and tax benefits? A Section 8 Company (under Companies Act, 2013) is the best option for entrepreneurs and social workers who want to promote charitable causes, social welfare, education, environment, healthcare, art & culture, or research activities.
At NEXGENCA, we provide end-to-end support for Section 8 Company Registration, helping you secure approvals from MCA (Ministry of Corporate Affairs), and get tax exemptions so that you can focus on your mission.
Why Choose a Section 8 Company?
- Legal Recognition as a registered NGO.
- Tax Benefits – Eligible for 12A, 80G exemptions (for donors & company).
- Limited Liability of members (like Pvt Ltd).
- Separate Legal Entity – Company can own assets & property.
- Better Credibility than Trusts & Societies.
- Funding Opportunities – Eligible for CSR funds, foreign donations (FCRA).
- No Minimum Capital Requirement.
Key Features of Section 8 Company
- Formed for charitable/social purposes only (not for profit-making).
- Profits, if any, must be reinvested in the company’s objectives.
- Minimum 2 Directors & 2 Shareholders required (can be the same).
- Registered under MCA (Companies Act, 2013).
- Can be registered as Private Limited or Public Limited NGO.
Step-by-Step Process of Section 8 Company Registration
Step 1: Obtain DSC & DIN
- Get Digital Signature Certificate (DSC) and Director Identification Number (DIN) for proposed directors.
Step 2: Name Approval (RUN Form / SPICe+)
- Apply to MCA for company name with words like “Foundation”, “Association”, “Society”, “Council”, “Charity”, etc.
Step 3: Draft MOA & AOA
- Prepare Memorandum of Association (MOA) & Articles of Association (AOA) clearly stating charitable objectives.
Step 4: Apply for License (INC-12 Form)
- File application with MCA for Section 8 License along with required documents.
Step 5: Incorporation with MCA
- After approval, file SPICe+ forms with MCA for final incorporation.
Step 6: Certificate of Incorporation
- MCA issues Certificate of Incorporation with Section 8 License Number.
Step 7: Apply for PAN, TAN & Tax Exemptions
- PAN, TAN issued. Apply separately for 12A & 80G exemptions under Income Tax.
- Timeline: 15–25 working days
Documents Required for Section 8 Company
For Directors/Shareholders
- PAN card (mandatory)
- Aadhaar card / Passport / Voter ID / DL
- Passport-size photo
- Email ID & Mobile number
For Registered Office
- Electricity/Water/Utility bill (not older than 2 months)
- Rent Agreement + NOC from owner (if rented)
- Ownership proof (if owned)
Other Documents
- Draft objectives of the NGO (social/charitable purpose)
- Financial projections for next 3 years (required for MCA approval)
Timeline for Registration
- DSC & DIN: 2–3 days
- Name Approval: 2–4 days
- Drafting MOA/AOA & License Application: 7–10 days
- MCA Approval & Incorporation: 7–10 days
- PAN, TAN, Tax Exemptions: 5–7 days
- Total Time: 15–25 working days
Post Registration Benefits
- Eligible for CSR funding from companies.
- Can apply for foreign donations (FCRA).
- Can open a current bank account in company name.
- Tax exemptions under 12A & 80G.
- Increased credibility compared to Trusts & Societies.
A company registered under Companies Act for charitable/social purposes, not for profit-making.
Minimum 2 Directors and 2 Members are required.
No, Section 8 Company can be started with any amount of capital.
Promotion of education, health, environment, art, culture, sports, research, social welfare, charity, etc.
Yes, it has higher legal recognition & credibility since it is registered with MCA.
Yes, but profits must be reinvested in the company’s objectives and not distributed as dividends.
Yes, Section 8 Companies are incorporated under the Companies Act, 2013.
Yes, but only after obtaining FCRA registration.
Section 8 Companies can apply for 12A & 80G registration for tax exemptions.
Yes, conversion is possible with MCA approval.
Usually 15–25 working days, depending on MCA approvals.
Yes, subject to employment terms.
Yes, since it is a registered company, audit is mandatory.
Yes, NRIs and foreign nationals can be directors with proper documents.
Yes, many government schemes and grants are available for registered NGOs.
• Audit is the examination of financial records to give an opinion on whether they show a true and fair view.
• Assurance is a broader service that improves the reliability of information (not limited to financial statements).
Yes. Every company registered under the Companies Act (Private/Public/OPC/Section 8) must get its accounts audited annually by a Chartered Accountant.
A statutory audit is a compulsory audit under the Companies Act, 2013, conducted to ensure that the financial statements of the company comply with law and show a true and fair view.
Only a Chartered Accountant (CA) or a firm of Chartered Accountants holding a valid certificate of practice can conduct a statutory audit.
A Tax Audit is conducted under the Income Tax Act to ensure that income, expenses, and deductions are reported correctly. It applies when:
• Business turnover > ₹1 crore (₹10 crores if cash transactions ≤ 5%).
• Professional receipts > ₹50 lakhs.
• Internal Audit: Conducted by management-appointed auditors for internal control and process improvement.
• Statutory Audit: Legally required by law and done by an independent CA.
No. Internal audit is mandatory only for:
• Listed companies, and
• Certain companies based on turnover and paid-up capital (as prescribed in Companies Act, Sec. 138).
A GST audit verifies whether the GST returns filed (GSTR-1, GSTR-3B, GSTR-9) match with financial records. It ensures correct Input Tax Credit (ITC) claims and tax payments.
A Stock Audit is verification of physical inventory with records. It helps:
• Detect discrepancies in stock.
• Prevent pilferage/fraud.
• Satisfy lender/bank requirements before giving loans.
It is a real-time transaction audit, usually for banks and financial institutions, to detect irregularities instantly.
A forensic audit is an investigation of financial transactions to detect fraud, misappropriation, or financial irregularities. It is often used in litigation.
• Audit Report: Provides an opinion on financial statements.
• Assurance Report: Provides confidence about the reliability of any kind of information (financial or non-financial).
A due diligence audit is performed before investments, mergers, or acquisitions to evaluate the financial, legal, and compliance position of the target company.
• Company: Fine up to ₹5 lakhs.
• Officers in Default: Fine up to ₹25,000.
• Auditor (if fails to report): Penalties + Disqualification.
• Expert Chartered Accountants & professionals.
• Technology-driven audit process.
• Transparent, reliable, and compliant reporting.
• Tailored services for startups, SMEs, and corporates.
• One-stop solution for Statutory, Tax, GST, Internal & Specialized audits