Prachi Singhadded a note 19 days ago
Build a Nonprofit with Section 8 Status
What is a Section 8 Company?
A Section 8 Company is a nonprofit organization formed under Section 8 of the Companies Act, 2013 in India. These entities are created to promote charitable objectives such as education, healthcare, environment, and social welfare, without the intent to distribute profits to members.
Why Choose Section 8 Status for a Nonprofit?
•Legal recognition nationwide
•High donor credibility, including eligibility for CSR-1 Registration
•Easier to access international grants through FCRA Registration
•Better chances for tax exemptions under 12A and 80G Registration
Key Features of a Section 8 Company
•Non-profit objectives only
•Profits, if any, are reinvested into the mission
•No dividends to members or directors
•Lifetime tax benefits with 12A/80G
Eligibility for Section 8 Company Registration
•Minimum 2 Directors (private) or 3 Directors (public)
•At least one Indian resident director
•A clear charitable purpose such as education, science, art, culture, or social welfare
Section 8 Company Registration Process
1. Obtain Digital Signature Certificates (DSC)
Required all directors to sign electronic forms on the MCA portal.
2. Apply for Name Reservation (RUN Form)
Reserve a unique company name with “Foundation”, “Association”, or “Federation”.
3. File SPICe+ Form
This integrated form includes:
•Director’s Identification Number (DIN)
•PAN, TAN
•Company incorporation
4. Submit INC-12 for License
Apply for a license from the Central Government to register under Section 8.
5. Issue of Incorporation Certificate
Once approved, you’ll receive:
•Certificate of Incorporation
•Section 8 License Number
Documents Required for Section 8 Company
•PAN and Aadhaar of all directors
•Proof of registered office (rent agreement/utility bill)
•Passport-size photos
•Draft MOA and AOA (Memorandum and Articles of Association)
Post-Incorporation Compliance for Section 8 Companies
•Hold the first board meeting within 30 days
•Maintain minutes and statutory registers
•File annual returns (AOC-4 and MGT-7)
•Conduct annual audits
Mandatory Tax and Legal Registrations
To expand funding opportunities and legal credibility, obtain:
12A and 80G Registration
•12A: Exempts income from tax
•80G: Allows donors to claim tax deductions
•Apply online via Form 10A
NITI Aayog Registration
•Registering on NGO Darpan portal
•Required for availing government schemes and grants
CSR-1 Registration
•File Form CSR-1 with MCA
•Necessary to receive CSR funds from corporates under Companies Act
FCRA Registration
•Required to receive foreign contributions
•Apply through FCRA Online Portal
•Must have a designated SBI account in New Delhi
Conclusion
Building a nonprofit through Section 8 company registration equips you with the legal strength, donor trust, and compliance structure needed for lasting impact. From initiating section 8 company registration process to completing essential add-ons like 12A and 80G Registration, NITI Aayog Registration, CSR-1 Registration, and FCRA Registration, each step solidifies your foundation for national and global partnerships.
Unlike informal entities, a Section 8 Company ensures long-term credibility, allowing access to CSR funds and foreign contributions, all while remaining tax-exempt. If your goal is to uplift lives, champion causes, and attract sustainable funding—start structured, stay compliant, and scale responsibly. For more information, click the link below: