What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Separate legal identity for the non-profit organization.
- Corporate structure with defined governance and statutory framework.
- Ability to pursue eligible charitable, educational, social, scientific, environmental, or similar objectives.
- Surplus can be applied towards the organization’s stated objectives.
- Assistance with MCA incorporation and documentation.
- Structured governance that can support institutional operations and funding activities.
- Post-incorporation guidance for corporate and applicable tax compliance.
How the engagement works
Section 8 Company incorporation is governed primarily by Section 8 of the Companies Act, 2013, together with applicable rules, notifications, and procedures prescribed by the Ministry of Corporate Affairs. Section 8 applies where the proposed company has qualifying objects, intends to apply its profits or other income towards those objects, and intends to prohibit payment of dividends to its members. The company is subject to the Companies Act and applicable statutory filing, accounting, governance, and reporting requirements. Tax registrations such as 12A/12AB and 80G are separate matters and may be considered based on the organization’s objectives and eligibility.
Scenario 1: A group wants to establish a non-profit organization for education, social welfare, healthcare, research, or community development activities.
Scenario 2: A charitable initiative wants a formal corporate structure for carrying out its stated non-profit objectives.
Scenario 3: A foundation wants to establish a structured organization with defined governance, members, directors, and statutory records.
Scenario 4: A social organization wants professional assistance with MCA incorporation and preparation of its MOA and AOA.
Scenario 5: Promoters want to establish a Section 8 Company and subsequently evaluate separate registrations such as 12A/12AB, 80G, or other applicable registrations.
Objective & Eligibility Assessment
We understand the proposed non-profit activities, objectives, promoters, directors, membership structure, and proposed operations and assess the applicable Section 8 incorporation requirements.
Name Selection & Reservation
We assist with selecting a suitable name consistent with the organization’s proposed objectives and complete the applicable MCA name reservation process.
DSC & DIN Support
We assist with obtaining Digital Signature Certificates and Director Identification Numbers required for the proposed directors and incorporation process.
General questions
01What is a Section 8 Company?
A Section 8 Company is a company incorporated for eligible non-profit objectives such as commerce, art, science, sports, education, research, social welfare, charity, religion, environmental protection, or similar purposes.
02Can a Section 8 Company earn income?
Yes. A Section 8 Company may generate income or surplus through activities permitted under its objectives and applicable law. However, its profits or income must be applied towards its stated objectives and cannot be distributed as dividends to members.
03Who can register a Section 8 Company?
Individuals or associations of persons meeting the applicable Companies Act requirements can establish a Section 8 Company, subject to the nature of the proposed objects, governance structure, documentation, and other statutory conditions.
04What documents are required for Section 8 Company registration?
Documents generally include identity and address proofs of proposed directors and members, registered office proof, declarations and consent documents, proposed objects, MOA, AOA, and other documents prescribed by the MCA.
05Can a Section 8 Company distribute profits to its members?
No. Section 8 companies are intended to apply their profits and other income towards their stated objects and are subject to restrictions regarding distribution of dividends to members.
06Is 12A or 12AB registration automatically granted with Section 8 registration?
No. Section 8 incorporation and income-tax registration under the applicable provisions such as 12A/12AB are separate processes. Eligibility and application requirements should be evaluated separately.
07Can a Section 8 Company obtain 80G registration?
A Section 8 Company may be eligible to apply for approval under the applicable 80G provisions, subject to satisfying the relevant income-tax conditions and documentation requirements. Incorporation as a Section 8 Company does not itself automatically grant 80G approval.
08Does a Section 8 Company have annual compliance requirements?
Yes. A Section 8 Company is subject to applicable corporate filings, financial statements, accounting requirements, statutory records, governance requirements, and tax or other regulatory compliances.
