Structure Your Social Mission Legally — India's Premier NGO Format
A Section 8 Company is a non-profit organisation incorporated under Section 8 of the Companies Act, 2013 — a company whose primary objective is charitable, educational, religious, scientific, social welfare, sports promotion, or environmental protection, and whose profits (if any) are applied only toward promoting these objectives rather than distributed as dividends to members.
Section 8 companies enjoy a special licence from the Central Government and are exempt from several provisions of the Companies Act — they need not use "Limited" or "Private Limited" in their name. They are eligible for income tax exemption under Section 11/12 of the Income Tax Act after registration under Section 12A and 80G, making them eligible to receive tax-deductible donations from individuals and corporates.
Section 8 is the preferred structure for NGOs, foundations, and non-profit entities over a Trust or Society, because it offers greater transparency, better corporate governance, and more credibility with Indian and foreign donors, FCRA authorities, and CSR funders.
80G Tax Exemption for Donors
Donors can claim income tax deductions on contributions — makes fundraising significantly easier.
Section 12A Income Tax Exemption
Organisation's own income is fully exempt from tax after 12A registration with the Income Tax Department.
CSR Funding Eligible
Section 8 companies are eligible to receive Corporate Social Responsibility (CSR) funds from large corporates under Companies Act Schedule VII.
FCRA Eligible for Foreign Funds
Can apply for FCRA registration to legally receive foreign contributions — mandatory for international donor funding.
Higher Credibility than Trust / Society
Registered with MCA — better governance, mandatory audits, and annual filings build donor and institutional trust.
Separate Legal Entity
Can own property, open bank accounts, enter contracts, and sue or be sued in its own name — independent of its founders.
| Feature | Section 8 ★ | Trust | Society |
|---|---|---|---|
| Governing Law | Companies Act 2013 | State Trusts Act | Societies Reg. Act |
| Transparency | Highest | Low | Moderate |
| CSR Eligibility | Yes | Conditional | Conditional |
| FCRA Eligible | Yes | Yes | Yes |
| Formation Ease | Moderate | Simplest | Moderate |
| Ideal For | Large NGOs, foundations | Small private charities | Member-based orgs |
NGO Founders
Individuals or groups starting a charitable foundation, educational trust, or welfare organisation.
Trust / Society Conversion
Existing Trusts or Societies wanting to convert to a more credible, MCA-governed corporate structure.
Corporate CSR Arms
Corporate houses setting up a dedicated CSR entity as an independent non-profit under Companies Act.
FCRA Applicants
Organisations seeking FCRA registration to legally receive foreign contributions from international donors.
Educational & Research Institutions
Schools, colleges, research bodies, and skill-development organisations operating on a non-profit basis.
Name & Licence Application (INC-12)
10–25 DaysApply for Central Government licence under Section 8 via Form INC-12 — requires detailed MOA/AOA with charitable objectives and a declaration of non-profit intent.
MOA / AOA Drafting
1–3 DaysDraft MOA and AOA reflecting charitable objects, non-profit clause, dividend prohibition, and dissolution clause for applying surplus to charitable purposes.
Incorporation via SPICe+
5–7 Days after LicenceFile SPICe+ incorporation form after Central Government licence approval. Obtain Certificate of Incorporation (COI), CIN, PAN, and TAN.
12A & 80G Registration
30–90 Days Post-IncorporationApply for Section 12A (income tax exemption) and 80G (donor deduction eligibility) registration with the Income Tax Department.
Directors / Members
PAN card, Aadhaar card, mobile number and email ID of all directors
Address proof (bank statement or utility bill — not older than 2 months)
Passport-size photograph of each director
Passport copy for foreign nationals / NRIs
Organisation / Office
Registered office proof — ownership document or NOC + rental agreement
Latest utility bill (electricity / water) — not older than 2 months
Brief description of proposed charitable objects / activities
DSC of all proposed directors (minimum 2)
Pricing Plans
Section 8 Incorporation
₹14,999 one-time
COI + PAN + Basic Setup
Ideal for: New NGO founders & charitable organisations
Complete NGO Package
₹24,999 one-time
Incorporation + 12A + 80G + Compliance
Ideal for: Organisations wanting full tax exemption and donor-ready setup
Frequently Asked Questions
What is the difference between a Section 8 Company, a Trust, and a Society?
Section 8 Company is governed by MCA, offers the highest transparency, and is best for large NGOs/foundations seeking CSR, FCRA, or institutional funding. Trust is the simplest to form, governed by state Trusts Act, and ideal for small private charities. Society is governed by the Societies Registration Act (state-wise) and preferred for member-based organisations like sports clubs or welfare associations.
Can a Section 8 Company pay salaries to its founders?
Yes — founders and employees can be paid market-rate salaries. The restriction is only on distributing profits as dividends to members. Reasonable compensation for services rendered is a legitimate expense of the organisation and is fully permitted under the Companies Act.
Is audit mandatory for a Section 8 Company?
Yes. A Section 8 Company must get its accounts audited by a Chartered Accountant every year, regardless of turnover. Annual ROC filings (AOC-4 and MGT-7) are also mandatory. After 12A registration, an annual Income Tax Return must be filed with the IT Department to maintain the exemption status.
What is the minimum number of directors required?
A minimum of 2 directors is required for a Section 8 Company (same as a Pvt Ltd). There is no upper limit. At least one director must be a resident of India as required by the Companies Act, 2013.
Can a Section 8 Company receive foreign donations?
Yes, but only after obtaining FCRA (Foreign Contribution Regulation Act) registration from the Ministry of Home Affairs. FCRA registration requires the organisation to have been in existence for at least 3 years and to have spent a minimum of ₹15 lakhs on charitable activities during that period.
⚡ Incorporation Includes
INC-12 licence, MOA/AOA, SPICe+ filing, 12A & 80G registration, FCRA advisory & compliance calendar — all handled for you