A Section 8 company is a non-profit company registered under Section 8 of the Companies Act, 2013. It must have objects such as commerce, art, science, sports, education, research, social welfare, religion, charity or environmental protection, apply its income only to those objects, and not pay dividends to members. It is incorporated through the MCA SPICe+ form with a licence from the Central Government and needs no minimum capital.
Eligible objects
- Promotion of commerce, art, science, sports or education
- Research, social welfare, religion or charity
- Protection of the environment, or similar objects
Requirements
- At least two directors and two members for a private Section 8 company
- Objects that meet Section 8, written into the memorandum
- An undertaking not to distribute profits as dividends
- A registered office address in India
How to register
- Get DSCs for directorsNeeded to sign the forms.
- Reserve the nameNames often include words such as Foundation, Association or Council.
- Prepare the MoA and AoAIn the Section 8 format, with the non-profit objects.
- File SPICe+ with the licence applicationThe licence under Section 8 is granted with incorporation.
- Register for tax exemptionsApply separately under the Income Tax Act if you want tax-exempt status for the company and donors.
Section 8 company compared with a trust or society
A Section 8 company is governed by the Companies Act and MCA, with clear rules on governance and filings. This usually gives it more credibility with donors, partners and foreign contributors than a trust or society, at the cost of more compliance.
Frequently asked questions
Can a Section 8 company make a profit?
It can earn a surplus, but the surplus must be used for its objects and cannot be paid as dividends to members.
Is there a minimum capital for a Section 8 company?
No. There is no minimum capital requirement.
Is a Section 8 company automatically tax-exempt?
No. It must register separately under the Income Tax Act for exemptions.
Who grants the Section 8 licence?
The Central Government, through the Registrar of Companies, during incorporation.
How BuyGenix Solutions helps
We help you draft the objects and documents, file the SPICe+ application with the Section 8 licence and plan the tax registrations that follow. BuyGenix members can also see live buyer requirements from importers in India and abroad.
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