Section 8 Company: How to Register a Non-Profit in India

A Section 8 Company (named for the relevant section of the Companies Act, 2013) is India's most credible legal structure for a non-profit that wants a formal, government-recognised entity rather than an informal trust or society.

What Makes It Different

The core rule is simple: profits, if any, must be reinvested into the organisation's stated charitable, educational, religious, or social objectives — not distributed to members as dividends. In exchange, the Central Government grants a licence dropping the words "Private Limited" or "Limited" from the name, and the structure carries far more credibility with grant-making bodies and CSR-funding corporates than a trust or society registration.

Registration Process

• Obtain DSC and DIN for proposed directors
• Apply for a Section 8 licence (INC-12) along with SPICe+ incorporation, stating the charitable objects
• File MOA and AOA reflecting the non-profit purpose
• Receive Certificate of Incorporation along with the Section 8 licence

Tax Benefits

A Section 8 Company is not automatically tax-exempt — it must separately apply for 12A registration (income tax exemption) and 80G registration (so donors can claim a tax deduction on their contributions). Without these two registrations, a Section 8 Company pays tax like any other company despite its non-profit objects, which is a step founders frequently miss.

Minimum requirement is 2 directors (7 for a public Section 8 Company), no minimum capital, and annual compliance mirrors a Private Limited Company — AOC-4, MGT-7, and statutory audit — plus the additional CSR-1 filing if the entity wishes to receive corporate CSR funding.