Section-8 Company Registration

A Section-8 Company is a not-for-profit company incorporated under the Companies Act, 2013 in India. It is formed for promoting objectives such as charitable activities, education, art, science, commerce, social welfare, or environmental protection. Unlike regular companies, a Section-8 Company cannot distribute profits to its members; any surplus generated is reinvested to further its objectives.

The registration process for a Section-8 Company involves several steps. First, promoters must obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for the proposed directors. Next, the company applies for name approval with the Registrar of Companies (RoC), ensuring the name reflects its not-for-profit objectives. After name approval, the Memorandum of Association (MOA) and Articles of Association (AOA) are drafted, clearly outlining the company’s objectives, governance structure, and operational rules. These documents, along with Form INC-12 and other required documents, are submitted to the Regional Director (RD) for approval. Upon verification, the RD issues a license under Section 8, allowing the company to be incorporated legally.

A Section-8 Company requires a minimum of two directors (for private) or seven directors (for public) and at least two members. It enjoys benefits such as tax exemptions, credibility, perpetual succession, and easier access to grants or donations from government and private organizations. Compliance includes annual filings, maintaining proper accounts, and adhering strictly to the objectives stated in the MOA.

Registering a Section-8 Company provides legal recognition, enhances credibility, and ensures that charitable or social initiatives operate transparently and effectively. It is the ideal structure for NGOs, foundations, and organizations with a social or public welfare mission.