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Start Your Section 8 Company

Section 8 Company

A Section 8 Company is a special type of company registered under the Companies Act, 2013 for promoting charitable objectives such as education, social welfare, environment protection, art, science, research, and other non-profit activities. It is ideal for NGOs, foundations, and social enterprises working for public welfare.

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Section 8 Company

What is a Section 8 Company?

A Section 8 Company is formed with the objective of promoting charitable or not-for-profit activities. Unlike other companies, profits earned cannot be distributed as dividends to members. Instead, they must be reinvested to promote the organization’s objectives.

Key Features

  • Separate Legal Entity

  • Limited Liability Protection

  • No Minimum Capital Requirement

  • Profits Reinvested for Social Objectives

  • Higher Credibility than Trust or Society

  • Tax Benefits (subject to registration)

Registration Requirements

  • Minimum 2 Directors (Private) or 3 Directors (Public)

  • Digital Signature Certificate (DSC)

  • Director Identification Number (DIN)

  • Name Approval & License from Central Government

  • MOA & AOA Drafting

  • PAN & TAN

Advantages

  • Strong legal recognition and credibility

  • Eligible for government grants & CSR funding

  • Tax exemptions under Income Tax Act (with 12A & 80G registration)

  • Limited liability protection for members

  • Transparent governance structure

Limitations

  • Profits cannot be distributed to members

  • Strict compliance and reporting requirements

  • Objectives must strictly align with charitable purposes

Who Should Choose Section 8 Company?

  • NGOs and charitable organizations

  • Educational and research institutions

  • Social enterprises

  • Foundations and CSR implementation agencies

How Logicway Advisors Can Help

We provide end-to-end assistance for Section 8 Company registration and compliance:

  • Name approval & license application

  • Drafting MOA & AOA

  • Incorporation with MCA

  • 12A & 80G registration support

  • Ongoing compliance, audit & advisory services