Section 8 Company (NGO) Registration

Section 8 Companies are non-profit entities, registered under the Companies Act, 2013, with the primary objective of promoting charity, education, social welfare, religion, art, or culture. These companies operate with a mission to contribute to the betterment of society and do not aim to make profits for their members.

A Section 8 company is ideal for NGOs that wish to pursue social, charitable, or environmental causes while enjoying the benefits of limited liability. It allows organizations to raise funds, apply for grants, and operate in a structured manner while adhering to the compliance guidelines laid down by the Ministry of Corporate Affairs (MCA).

Section 8 Company Registration

A Section 8 Company is a corporate entity formed under Section 8 of the Companies Act with the primary objective of promoting commerce, art, science, sports, education, research, social welfare, protection of environment or similar causes.

Key features include:

All profits or income must be applied to further the company’s objects, and no dividend can be paid to its members.
There is no minimum paid-up capital requirement.
The word “Limited” or “Private Limited” is not required in the company’s name.
It enjoys legal recognition under the Companies Act and can receive grants or donations, and may be eligible for tax exemptions.

What is a Section 8 Company & Why It Matters

Key features include:

All profits or income must be applied to further the company’s objects, and no dividend can be paid to its members.
There is no minimum paid-up capital requirement.
The word “Limited” or “Private Limited” is not required in the company’s name.
It enjoys legal recognition under the Companies Act and can receive grants or donations, and may be eligible for tax exemptions.

Our Section 8 Company Services

Registration & Incorporation – We assist with name reservation, obtaining the Section 8 licence, preparing MOA/AOA, DIN/DSC, and filing with the ROC.
Post-Incorporation Compliance – Handling all filings such as annual returns, financial statements, changes in directors or members, amendments in objects and constitution.
Statutory & Tax Advisory – Guidance on tax-exempt status (eg. under Sections 12AA/80G), audit requirements, governance norms and financial regulations.
Ongoing Secretarial Support – Regular monitoring of due dates, maintenance of statutory registers, board & general meeting documentation, and help with state / central compliance.
Conversion & Closure Assistance – Advisory on converting existing entity into a Section 8 Company or winding up/out-of-compliance entities appropriately.

Why Choose Prowess Tax Consultancy

Deep experience with Section 8 Companies and non-profit corporate structure
Transparent processes and timelines — we guide you step-by-step
One-stop solution for setup, compliance, tax exemptions and secretarial support
Customised service tailored to your cause, scale and governance needs

Frequently Asked Questions (FAQs)

1. What is a Section 8 Company?

A corporate entity under the Companies Act formed to promote social, charitable or public-benefit objectives, where profits are reinvested and no dividends are paid.

2. Can a Section 8 Company distribute profits to members?

No — any profit or income must be applied solely toward the company’s objectives, and dividends to members are prohibited.

3. Is there a minimum capital requirement to form a Section 8 Company?

No — there is no prescribed minimum paid-up share capital for a Section 8 Company.

4. Does a Section 8 Company enjoy special tax benefits?

Yes — if compliant, it may be eligible for tax exemptions under Sections 12AA/80G of the Income Tax Act, alongside other regulatory advantages.

5. How is ongoing compliance different for a Section 8 Company?

Besides standard company filings, Section 8 Companies must adhere to stricter object-based governance, reinvestment of income, and may have exemption relaxations under certain MCA rules.