REG-06 · Start a business
Section 8 Company
A not-for-profit company for charitable, educational or social work.
- Professional fee from
- ₹12,999
- Timeline
- 20–30 working days
- Governed by
- Companies Act, 2013 · s.8
Professional fee. Government fee at cost. Licence fee included.
Best suited to
NGOs and foundations that want the credibility of a company structure
Overview
A section 8 company applies its profits to promoting commerce, art, science, education, research, social welfare, religion, charity or environmental protection, and pays no dividend to members. It carries more credibility with donors and CSR funders than a trust or society, because it files audited accounts with the Registrar every year.
The Central Government must issue a licence in Form INC-12 before incorporation, which is what makes this a longer process than an ordinary company.
What is included
- Section 8 licence application in Form INC-12
- MOA in Form INC-13 and AOA drafted for charitable objects
- DSC and DIN for two directors
- SPICe+ incorporation, PAN and TAN
- Guidance on 12A, 80G and CSR-1 registration
Documents you need
- 01PAN card of every proposed director or partner
- 02Aadhaar plus one of voter ID, passport or driving licence
- 03Passport-size photograph
- 04Bank statement or utility bill from the last two months
- 05Proof of the registered office address and a No Objection Certificate from the owner
- 06Statement of proposed objects and projected income and expenditure for three years
- 07Declaration by a practising CA, CS or CWA in Form INC-14
How the filing runs
- Week 1
Objects and projections
We draft the objects clause and the three-year financial projection the licence application requires.
- Week 2
Licence applied
Form INC-12 filed with the Registrar.
- Week 3–4
Licence granted
Licence in Form INC-16 issued.
- Week 4–5
Incorporated
SPICe+ filed and the Certificate of Incorporation issued.
Questions about section 8 company
01Do I also need 12A and 80G registration?
Yes, if you want the organisation's income exempt and donors to claim deduction. These are separate applications to the Income Tax Department and we handle them as an add-on.
02Can directors draw a salary?
Yes, reasonable remuneration for actual services is allowed. What is prohibited is distributing profits as dividend.
Tell us what the business does. We will tell you what it needs.
A 15-minute call with a Chartered Accountant or Company Secretary, at no cost, before you commit to anything.