Section 8 Company Registration: Process, Documents and Ongoing Compliance

A Section 8 company is a company formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection or similar objects, which applies its income to those objects and pays no dividends. It's the most formal NGO structure in India.

Key Features

• No minimum capital requirement.
• At least two members and two directors for a private company.
• A licence from the Central Government, granted through the incorporation process.
• Profits applied only to objects; no dividends.
• Exemptions from some Companies Act requirements.

Registration Process

1. Reserve the name through SPICe+ Part A. Names often include words like Foundation, Forum, Association or Council.
2. Prepare the memorandum and articles in the prescribed Section 8 format.
3. File SPICe+ Part B with the licence application, declarations and projected income and expenditure.
4. Obtain the certificate of incorporation, PAN and TAN.

Documents Needed

• Directors' and members' identity and address proofs.
• Registered office proof and owner's NOC.
• Digital signatures for the directors.
• Declarations from the professional and the subscribers.

Ongoing Compliance

• Board meetings as required (relaxed for Section 8 companies in some respects).
• Statutory audit of accounts.
• AOC-4 and MGT-7 filings with the ROC.
• Income tax return in ITR-7, with the audit report under the charitable provisions.
• Prior approval for changes to objects or the memorandum.

After Incorporation

Apply for 12AB and 80G registration immediately, register on NGO Darpan if you seek government grants, and file CSR-1 if you intend to receive CSR funds.

Getting Help

Think Filing registers Section 8 companies and handles their ongoing compliance.