A Section 8 Company is the most credible and governable Non-Profit Organisation structure in India, regulated by MCA under the Companies Act, 2013. BigMind Consulting incorporates Section 8 Companies across India — managing the MCA Section 8 licence, SPICe+ filing, 12A & 80G income tax exemption registrations, and FCRA applications for organisations planning to receive foreign donations.
Documents required for Section 8 Company incorporation
For each Director
- PAN Card
- Aadhaar Card
- Passport-size photograph
- Address proof (not older than 2 months)
- DSC (Digital Signature Certificate)
For the Company
- Proposed company name (must reflect charitable purpose)
- Draft MOA specifying charitable objects
- Draft AOA
- Registered office address proof & NOC
- Declaration of non-profit intent by all subscribers
Step-by-step Section 8 Company registration process
Name Reservation (RUN / SPICe+ Part A)
Reserve the company name. For Section 8, names often include words like 'Foundation', 'Association', 'Organisation', 'Society', etc. MCA must also grant the Section 8 Licence.
Prepare MOA, AOA & Licence Application
Draft the Memorandum of Association (MOA) specifying charitable objectives and Articles of Association. File Form INC-12 to obtain the Section 8 licence from the Central Government (Regional Director, MCA).
DSC & DIN for all Directors
Obtain Digital Signature Certificates and Director Identification Numbers for all proposed directors.
SPICe+ Filing — Incorporation
File the integrated SPICe+ form with MCA along with the approved Section 8 licence, MOA, AOA, and other documents.
Certificate of Incorporation
MCA issues Certificate of Incorporation (CIN) along with PAN and TAN. The Section 8 Company is now legally registered.
12A & 80G Registration
Apply to the Income Tax Department for 12A (income tax exemption for the NGO) and 80G (donation deduction benefit for donors) registrations.
FCRA Registration (if needed)
If the NGO plans to receive foreign funding, apply to the Ministry of Home Affairs (MHA) for FCRA registration. This requires at least 3 years of operations and audited accounts.
12A, 80G & FCRA Registrations Explained
12A — Income Tax Exemption
Exempts the NGO from paying income tax on surplus income. Applied to the Commissioner of Income Tax (Exemptions). Now granted as provisional registration initially, converted to regular after 3 years.
80G — Donor Tax Deduction
Enables donors to claim 50% deduction on donations made to the NGO in their own ITR. Applied alongside 12A. Significantly increases donor confidence and attractiveness of the NGO.
FCRA — Foreign Contributions
Required if the NGO plans to receive foreign donations (from overseas individuals or organisations). Regulated by MHA. Requires minimum 3 years of operation and audited accounts.
Section 8 Company vs Trust vs Society
| Feature | Section 8 Company | Trust | Society |
|---|---|---|---|
| Governing Law | Companies Act, 2013 (Central) | Indian Trusts Act (State) | Societies Registration Act (State) |
| Minimum Members | 3 directors, 2 shareholders | 2 trustees | 7 members |
| Credibility / Governance | Highest — MCA regulated | Moderate | Moderate |
| CSR Fund Eligibility | Yes (preferred by corporates) | Limited | Limited |
| FCRA Eligible | Yes | Yes | Yes |
Frequently Asked Questions
What is a Section 8 Company?
A Section 8 Company is a Non-Profit Organisation (NPO) incorporated under Section 8 of the Companies Act, 2013. Its profits cannot be distributed to members — they must be applied toward the company's objectives, which typically include education, environment, social welfare, arts, or charitable purposes.
Can a Section 8 Company receive donations?
Yes. A Section 8 Company can receive donations from Indian citizens. If donations are to attract 80G deduction benefits for donors, the company must obtain 80G registration from the Income Tax Department. For foreign donations, FCRA registration from MHA is mandatory.
What are 12A and 80G registrations?
12A registration grants income tax exemption to the NGO itself on its income. 80G registration enables donors to claim a 50% deduction on their donations to the NGO when filing their own income tax returns. Both are obtained from the Commissioner of Income Tax (Exemptions).
What is the minimum number of directors for a Section 8 Company?
A minimum of 3 directors and 2 shareholders are required for a Section 8 Company. The directors must be individuals (not corporate entities), and at least one must be an Indian resident.
Is a Section 8 Company the best structure for an NGO in India?
A Section 8 Company offers the most formal, credible, and regulated structure for an NGO with strong governance, MCA oversight, and donor confidence. Compared to a Trust or Society, it provides better access to government grants, CSR funds, and international donors. BigMind recommends Section 8 for NGOs planning to scale their operations.
Ready to incorporate your NGO?
BigMind handles Section 8 Company incorporation, 12A, 80G, and FCRA registration in India. Book a free consultation.
BigMind Consulting · NGO Registration & Compliance · India · Section 8 Company, 12A, 80G, FCRA Registration