A Section 8 Company is a type of non-profit organization formed to work in areas such as education, healthcare, social welfare, environmental protection, research, arts, culture, and religion.
The primary purpose of this company structure is to serve society rather than earn profit. It operates under the supervision of the Ministry of Corporate Affairs (MCA) and enjoys a separate legal identity along with limited liability protection for its members. Due to its rigorous governance, a Section 8 Company commands the highest trust from foreign donors and government bodies.
The Golden Rule of Section 8
No Profit Distribution
Unlike regular companies, a Section 8 Company cannot distribute dividends or profits to its members. Any income or surplus generated must be strictly reinvested to achieve the organization’s charitable objectives.
The Registration Process
- 1
Choose the Company Name
Select a unique name that reflects the charitable objectives. It must end with words like Foundation, Forum, Association, or Federation.
- 2
Obtain DSC and DIN
Apply for Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for the proposed directors.
- 3
Draft MOA & AOA
Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) stating the exact charitable objectives and non-profit rules.
- 4
Apply for Name Approval
Submit the name application through the MCA portal (SPICe+ Part A) for approval.
- 5
File Incorporation Forms
Submit incorporation documents along with the Section 8 license application (SPICe+ Part B) to the ROC.
- 6
Issuance of License & Certificate
Upon verification, the MCA issues the Section 8 License and the Certificate of Incorporation.