{"id":35375,"date":"2026-05-07T11:36:00","date_gmt":"2026-05-07T06:06:00","guid":{"rendered":"https:\/\/blogrevamp.cashfree.com\/?p=35375"},"modified":"2026-05-06T23:37:35","modified_gmt":"2026-05-06T18:07:35","slug":"section-8-company","status":"publish","type":"post","link":"https:\/\/blogrevamp.cashfree.com\/section-8-company\/","title":{"rendered":"Section 8 Company in India: Meaning, Registration, Fees &#038; Benefits Explained"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a8f499521538\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #364250;color:#364250\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #364250;color:#364250\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a8f499521538\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#What_is_a_Section_8_Company\" >What is a Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#Section_8_Company_vs_Trust_vs_Society_vs_Pvt_Ltd_%E2%80%93_How_Do_They_Differ\" >Section 8 Company vs Trust vs Society vs Pvt Ltd &#8211; How Do They Differ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#What_are_the_Advantages_of_a_Section_8_Company\" >What are the Advantages of a Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#What_are_the_Disadvantages_of_a_Section_8_Company\" >What are the Disadvantages of a Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#Who_Can_Register_a_Section_8_Company\" >Who Can Register a Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#Section_8_Company_Registration_Process_Step-by-Step\" >Section 8 Company Registration Process (Step-by-Step)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#Section_8_Company_Registration_Fees\" >Section 8 Company Registration Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#What_to_Do_After_Registering_Your_Section_8_Company\" >What to Do After Registering Your Section 8 Company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#Conclusion\" >Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/blogrevamp.cashfree.com\/section-8-company\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, formed to promote charitable objectives like education, social welfare, and environmental protection, where profits are reinvested and not distributed.<\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">With the intent to promote non-profit objectives of organisations or individuals, the government has made a Section 8 Company.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a businessman on a mission to open schools in rural areas or a company aiming to provide skill-development programs in underprivileged areas, while having a complete legal structure, credibility, and tax efficiency, Section 8 Company provides them the scale to impact.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Incorporated as a non-profit company under Section 8 of the Companies Act, 2013, these organisations are formed to promote charitable activities like education, social welfare, and environmental protection.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Section_8_Company\"><\/span>What is a Section 8 Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under Section 8 of the Companies Act, 2013, the Central Government (via the Ministry of Corporate Affairs) grants a licence to entities that intend to promote non-profit objectives. But it\u2019s only when these organisations reinvest the profits into their existing charitable operations.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In essence, non-profit does not mean that you cannot generate revenue. There are multiple ways to generate income, like through donations, charities, grants, and other business activities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the core principle is that all profits and income generated must be used within the Section 8 Company only.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The eligible objectives outlined in Section 8 of the Companies Act, 2013 include;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Education<\/li>\n\n\n\n<li>Charity\u00a0<\/li>\n\n\n\n<li>Social Welfare<\/li>\n\n\n\n<li>Promotion of Arts, Science, Sports, and Culture<\/li>\n\n\n\n<li>Environment Protection<\/li>\n\n\n\n<li>Religion and Community Development<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You can incorporate an existing company under Section 8 or form a new organisation individually or with a group of individuals.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Simply put, Section 8 gives you a formalised and government-recognised way to run a mission-driven organisation which may look like a company from the outside, but at its core, is an NGO.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Businesses running on this model get credibility, limited liability, and access to funds from different channels, including Corporate Social Responsibility (CSR).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_8_Company_vs_Trust_vs_Society_vs_Pvt_Ltd_%E2%80%93_How_Do_They_Differ\"><\/span><strong>Section 8 Company vs Trust vs Society vs Pvt Ltd &#8211; How Do They Differ?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Criteria<\/strong><\/td><td><strong>Section 8 Company<\/strong><\/td><td><strong>Trust<\/strong><\/td><td><strong>Society<\/strong><\/td><td><strong>Private Limited (CSR Arm)<\/strong><\/td><\/tr><tr><td><strong>Legal framework<\/strong><\/td><td>Companies Act, 2013<\/td><td>Indian Trusts Act, 1882<\/td><td>Societies Registration Act, 1860<\/td><td>Companies Act, 2013<\/td><\/tr><tr><td><strong>Profit distribution<\/strong><\/td><td>Not allowed<\/td><td>Not allowed<\/td><td>Not allowed<\/td><td>Allowed<\/td><\/tr><tr><td><strong>Minimum capital<\/strong><\/td><td>No minimum<\/td><td>No minimum<\/td><td>No minimum<\/td><td>No minimum (practically required)<\/td><\/tr><tr><td><strong>Stamp duty<\/strong><\/td><td>\u20b90 on incorporation<\/td><td>Applicable (varies by state)<\/td><td>Applicable<\/td><td>Applicable<\/td><\/tr><tr><td><strong>Audit requirement<\/strong><\/td><td>Mandatory<\/td><td>Mandatory (if income threshold crossed)<\/td><td>Mandatory<\/td><td>Mandatory<\/td><\/tr><tr><td><strong>Change of objectives<\/strong><\/td><td>Requires Central Govt approval<\/td><td>Easier<\/td><td>Moderate difficulty<\/td><td>Easy<\/td><\/tr><tr><td><strong>Tax exemption (12A\/80G)<\/strong><\/td><td>Available<\/td><td>Available<\/td><td>Available<\/td><td>Not available<\/td><\/tr><tr><td><strong>CSR fund eligibility<\/strong><\/td><td>High<\/td><td>Moderate<\/td><td>Moderate<\/td><td>Not eligible as a recipient<\/td><\/tr><tr><td><strong>Foreign donation (FCRA)<\/strong><\/td><td>Allowed with registration<\/td><td>Allowed with registration<\/td><td>Allowed with registration<\/td><td>Not applicable<\/td><\/tr><tr><td><strong>Credibility with donors<\/strong><\/td><td>Very high<\/td><td>Moderate<\/td><td>Moderate<\/td><td>Low (for non-profit work)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Go with Section 8 if you need maximum donor and CSR credibility for your organisation from day one. Moreover, if you plan to scale the organisation nationally and work with other organisations and want a structured governance plus compliance system for your non-profit, go with Section 8 Company registration.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Also read: <\/em><\/strong><a href=\"https:\/\/www.cashfree.com\/blog\/private-limited-company-explained\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong><em>What is Private Limited Company (Pvt Ltd)<\/em><\/strong>?<\/mark><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Advantages_of_a_Section_8_Company\"><\/span><strong>What are the Advantages of a Section 8 Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While offering you a legal structure, a Section 8 Company impacts how you raise funds, operate the non-profit, and how easily you can scale.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Limited Liability Protection: <\/strong>Section 8 gives you limited liability protection, which means if the company faces financial or legal claims, your personal finances, house, and assets cannot be attached to the company. This is crucial if you are getting a large volume of donations and handling multiple operations.<br><\/li>\n\n\n\n<li><strong>Separate Legal Entity: <\/strong>The non-profit operates as a separate legal entity, which means any assets, properties, etc., you buy will be registered under the company name. Moreover, the company\u2019s name will come in contracts, to raise funds, and more.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li><strong>No Minimum Capital Requirement: <\/strong>A<strong> <\/strong>Section 8 company means you won\u2019t have to show any capital to start the organisation. After paying the minimal Section 8 company registration fees, you can start the operations.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li><strong>Zero Stamp Duty: <\/strong>During incorporation, where companies registered under other formats have to pay a stamp duty, Section 8 companies need not pay any. This reduces the upfront cost to kickstart the organisation.<\/li>\n<\/ol>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li><strong>12A Registration: <\/strong>After the initial registration, when you register with Section 12A, any income you generate is tax-free. Moreover, with 80G registration, even your donors can claim tax deductions, which improves your ability to raise funds from all corners of the country, and since donors can claim tax exemptions, they will be more than ready to donate.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"6\" class=\"wp-block-list\">\n<li><strong>Get CSR Funding: <\/strong>Companies registered under Section 8 are eligible to get CSR-based funding and assistance for corporate houses and large organisations. The legal structure and credibility this section grants make these organisations an attractive destination for for-profit companies.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"7\" class=\"wp-block-list\">\n<li><strong>FCRA Registration: <\/strong>Although the process to get FCRA registration does not get easier, if you can get it done, you can legally obtain funds as donations and charities from foreign donors.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"8\" class=\"wp-block-list\">\n<li><strong>Perpetual Succession: <\/strong>Non-profit companies with Section 8 Company registration operate regardless of founder changes. Hence, the certification ensures the mission continues regardless of who is sitting in the management.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"9\" class=\"wp-block-list\">\n<li><strong>Access to Government Grants: <\/strong>Once registered, you can register with the government\u2019s Darpan portal. This registration opens doors for government-led initiatives, including grants and partnerships.\u00a0<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Also read: <a href=\"https:\/\/www.cashfree.com\/blog\/llp-vs-private-limited-company\/\" target=\"_blank\" rel=\"noreferrer noopener\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">LLP or Private Limited? Tax, Cost &amp; Funding Comparison Explained<\/mark><\/a><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Disadvantages_of_a_Section_8_Company\"><\/span><strong>What are the Disadvantages of a Section 8 Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Cannot Distribute Profits: <\/strong>Since you are working as a non-profit organisation, any profits generated cannot be distributed among the founders. All profits need to be reinvested into the same organisation.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li><strong>Higher Compliance Burden: <\/strong>From <a href=\"http:\/\/www.cashfree.com\/blog\/what-is-roc-registrar-of-companies\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">ROC filings<\/mark><\/a> to board meetings to audits, annual returns, tax registrations, and more, ensuring compliance for a Section 8 Company is a complex process.<\/li>\n<\/ol>\n\n\n\n<ol start=\"3\" class=\"wp-block-list\">\n<li><strong>Tightly Regulated Dissolution: <\/strong>Dissolution of a Section 8 company isn\u2019t as easy as you cannot shut down all operations and that\u2019s it. Instead, you have to transfer all assets to another Section 8 entity and obtain approvals.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"4\" class=\"wp-block-list\">\n<li><strong>Cannot Change Objectives: <\/strong>For an existing Section 8 company, changing the objectives requires a major shift with approvals from the Central Government, limiting an organisation\u2019s flexibility.\u00a0<\/li>\n<\/ol>\n\n\n\n<ol start=\"5\" class=\"wp-block-list\">\n<li><strong>No FDI: <\/strong>To accept Foreign Direct Investment, the company needs FCRA registration, which has its own approvals, timelines, and scrutiny.\u00a0<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_Can_Register_a_Section_8_Company\"><\/span>Who Can Register a Section 8 Company?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To build a Section 8 company means you need to qualify for some basic requirements as an individual and for setting up the company structure.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Requirements to Form a Section 8 Company&nbsp;<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indian national, group of individuals or a Hindu Undivided Family (HUF)<\/li>\n\n\n\n<li>Existing company wanting to change its structure to a non-[rpfit.\u00a0<\/li>\n\n\n\n<li>NRI or foreign national, but you must meet the director and compliance requirements.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>To Set up the Company, you will need<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum of 2 directors for a Private Section 8 Company<\/li>\n\n\n\n<li>3 directors for a public Section 8 Company<\/li>\n\n\n\n<li>One resident Indian director<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, you also need to have at least 2 members, who can be shareholders or subscribers. Plus, a clearly defined charter or non-profit objective is essential as mandated under Section 8 of the Companies Act 2013.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_8_Company_Registration_Process_Step-by-Step\"><\/span>Section 8 Company Registration Process (Step-by-Step)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Obtain DSC: <\/strong>Generally, taking 1 or 2 days, a Digital Signature Certificate is required to sign MCA filings electronically.<br><\/li>\n\n\n\n<li><strong>Apply for DIN: <\/strong>Get it through SPICe+ within one day, your Director Identification Number is also necessary for documentation and recognition purposes.<br><\/li>\n\n\n\n<li><strong>Reserve Name: <\/strong>Submit a couple of options for the Name of your non-profit that reflects your objectives, and the MCA will approve one name based on availability and compliance.<br><\/li>\n\n\n\n<li><strong>Draft MOA and AOA: <\/strong>Memorandum of Association, to be made as per the INC-13 format for a Section 8 company and Articles of Association are required to share the company\u2019s objectives.<br><\/li>\n\n\n\n<li><strong>File INC-12 for Section 8 License: <\/strong>Apply for a licence with the Regional Director through Form INC-12, along with other declarations like INC-14 and INC-15, plus the financial projections.<br><\/li>\n\n\n\n<li><strong>Receive Licence: <\/strong>With the submissions complete, the MCA issues a Section 8 license through Form INC-16 or INC-17. This means you can now proceed with the incorporation of the company.<br><\/li>\n\n\n\n<li><strong>File SPICe+ and Part B: <\/strong>With the formalities complete, you need to submit the incorporation details, including directors, capital structure, and registered office.<br><\/li>\n\n\n\n<li><strong>Receive Certificate: <\/strong>Your Company 8 incorporation is complete as the Registrar of Companies issues the Certificate of Incorporation (COI), giving your company a legal structure.\u00a0<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Also read: <a href=\"https:\/\/www.cashfree.com\/blog\/articles-of-incorporation\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Articles of Incorporation: Meaning, Requirements &amp; Filing Process in India<\/mark><\/a><\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Documents Required for Section 8 Company Incorporation<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>DSC for all directors<\/li>\n\n\n\n<li>DIN (via SPICe+)<\/li>\n\n\n\n<li>MOA (INC-13) and AOA drafts<\/li>\n\n\n\n<li>INC-14 (CA\/CS declaration)<\/li>\n\n\n\n<li>INC-15 (subscriber declaration)<\/li>\n\n\n\n<li>INC-9 (director declaration)<\/li>\n\n\n\n<li>Registered office proof (rent agreement\/utility bill)<\/li>\n\n\n\n<li>Director ID and address proofs<\/li>\n\n\n\n<li>Projected income &amp; expenditure statement (3 years)<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_8_Company_Registration_Fees\"><\/span>Section 8 Company Registration Fees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Fee Type<\/strong><\/td><td><strong>Amount (\u20b9)<\/strong><\/td><td><strong>Notes<\/strong><\/td><\/tr><tr><td><strong>DSC (per director)<\/strong><\/td><td>1,000\u20131,500<\/td><td>One-time cost<\/td><\/tr><tr><td><strong>DIN application<\/strong><\/td><td>NIL<\/td><td>Included in SPICe+<\/td><\/tr><tr><td><strong>Name reservation<\/strong><\/td><td>1,000<\/td><td>SPICe+ Part A<\/td><\/tr><tr><td><strong>Section 8 licence (INC-12)<\/strong><\/td><td>Varies<\/td><td>ROC-based fee<\/td><\/tr><tr><td><strong>SPICe+ filing fee<\/strong><\/td><td>Varies<\/td><td>Based on capital<\/td><\/tr><tr><td><strong>Stamp duty (MOA\/AOA)<\/strong><\/td><td><strong>NIL<\/strong><\/td><td>Full exemption<\/td><\/tr><tr><td><strong>Professional fees (CA\/CS)<\/strong><\/td><td>8,000\u201315,000<\/td><td>Market-dependent<\/td><\/tr><tr><td><strong>12A registration<\/strong><\/td><td>NIL<\/td><td>Govt fee exempt<\/td><\/tr><tr><td><strong>80G registration<\/strong><\/td><td>NIL<\/td><td>Govt fee exempt<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">An estimated cost of \u20b910,000 to \u20b925,000 is required for Section 8 company registration, including the professional support and structure you need.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_to_Do_After_Registering_Your_Section_8_Company\"><\/span><strong>What to Do After Registering Your Section 8 Company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Once registered or incorporated, you must not stop here, but there are several other things required post-registration, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>12A Registration: <\/strong>Registering here makes your income fully tax-exempt, and you need to apply for the same soon after incorporating using Form 10A.<br><\/li>\n\n\n\n<li><strong>80G Registration: <\/strong>Filed with the Income Tax Department, this registration will allow donors to claim tax deductions and doing so will directly improve your fundraising conversion.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CSR-1 Filing: <\/strong>Registered with the MCA and a mandatory process since April 2021, this filing is required to legally receive CSR funds from other companies under Section 135.<br><\/li>\n\n\n\n<li><strong>NGO Darpan: <\/strong>Running under the NITI Aayog, the Darpan certificate registers your company with the Ministry of Home Affairs, and this opens the gates to grants and ministry schemes.<br><\/li>\n\n\n\n<li><strong>FCRA Registration: <\/strong>Needed to receive foreign donations, you can only apply for the FCRA registration after 3 years of operations.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Annual Compliance Requirements Needed After Registration<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When running a Section 8 Company, you also need to fulfil some compliance requirements that need to be completed annually.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum 2 board meetings every year<\/li>\n\n\n\n<li><strong>Annual return (MGT-7)<\/strong>: File within 60 days of AGM<\/li>\n\n\n\n<li><strong>Financial statements (AOC-4)<\/strong>: File within 30 days of AGM<\/li>\n\n\n\n<li><strong>Statutory Audit<\/strong>: Mandatory regardless of turnover<\/li>\n\n\n\n<li>Income Tax Return filing<\/li>\n\n\n\n<li>Maintain statutory registers and records<\/li>\n\n\n\n<li>GST compliance if turnover exceeds \u20b920L (services) \/ \u20b940L (goods)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Non-compliance puts you under the scanner of multiple government agencies and organisations. Once flagged, your company will be at risk of financial penalties, ROC Strike Off, cancellation of 12A\/80G status, and loss of credibility among donors.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Section 8 Company is the most credible and tax-efficient structure to build a scalable yet non-profit organisation. The registration process for a Section 8 company has multiple steps, but it&#8217;s nothing you cannot figure out on your own.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The thing that does need your attention is building the financial infrastructure from day one. How you collect donations, track fundings, <a href=\"https:\/\/www.cashfree.com\/payouts\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">manage payouts<\/mark><\/a>, and manage records directly impacts your ability to scale and stay compliant.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After registration, you need to set up a <a href=\"https:\/\/www.cashfree.com\/payment-gateway-india\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">reliable payment system<\/mark><\/a>, and this is where Cashfree comes in. We already support more than 1 million Indian businesses, including NGOs. <a href=\"https:\/\/www.cashfree.com\/blog\/introducing-cashfrees-payment-stack-for-agentic-ecosystem\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\">Cashfree gives you smart AI-enabled payments management<\/mark><\/a> and 100+ payment modes with instant settlement options.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is a Section 8 company in simple terms?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Section 8 company is a non-profit organization that uses its income for social or charitable purposes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is the cost of Section 8 company registration?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It typically costs between \u20b910,000 and \u20b925,000.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Can a Section 8 company make profit?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, but profits must be reinvested.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What is the difference between a Section 8 company and a Section 25 company?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Section 25 company is the old term used to denote a Section 8 company, but the former is referred to in the Companies Act 1956, and the latter terminology is updated in the Companies Act 2013.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>How long does it take for Section 8 Company registration?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given you complete all the formalities as required without any delays or re-submissions, it can take between 15 and 30 days for the entire process. But delays can occur due to any mismatch in information.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>In case you missed it:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-1\"><a href=\"https:\/\/www.cashfree.com\/blog\/how-to-start-startup-india\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Start a Startup in India<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-2\"><a href=\"https:\/\/www.cashfree.com\/blog\/business-environment-meaning-types\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Is Business Environment? Meaning, Types, and Why It Matters?<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-3\"><a href=\"https:\/\/www.cashfree.com\/blog\/private-limited-company-explained\/\" target=\"_blank\" rel=\"noreferrer noopener\">Pvt Ltd Full form, How to Register &amp; Documents Required<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-4\"><a href=\"https:\/\/www.cashfree.com\/blog\/gst-registration-online-process-documents\/\" target=\"_blank\" rel=\"noreferrer noopener\">How to Apply for GST Number, Process &amp; Documents<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-5\"><a href=\"https:\/\/www.cashfree.com\/blog\/difference-between-llc-and-c-corporation\/\" target=\"_blank\" rel=\"noreferrer noopener\">Difference Between LLC and C Corporation<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-6\"><a href=\"https:\/\/www.cashfree.com\/blog\/msme-registration-india-process-certificate-eligibility\/\" target=\"_blank\" rel=\"noreferrer noopener\">MSME Registration in India<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-7\"><a href=\"https:\/\/www.cashfree.com\/blog\/merchant-payment-meaning-process-fees\/\" target=\"_blank\" rel=\"noreferrer noopener\">What is Merchant Payment?<\/a><\/li>\n\n\n\n<li class=\"has-vivid-cyan-blue-color has-text-color has-link-color wp-elements-8\"><a href=\"https:\/\/www.cashfree.com\/blog\/what-is-gst-goods-and-service-tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">What is Goods and Service Tax (GST)<\/a><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, formed to promote charitable objectives like education, social welfare, and environmental protection, where profits are reinvested and not distributed. With the intent to promote non-profit objectives of organisations or individuals, the government has made a Section 8 Company.&nbsp; For a businessman<\/p>\n","protected":false},"author":142,"featured_media":35389,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_themeisle_gutenberg_block_has_review":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[9973],"tags":[],"class_list":["post-35375","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Section 8 Company? Registration, Fees, Benefits Explained<\/title>\n<meta name=\"description\" content=\"Learn what a Section 8 company is, registration process, fees, benefits, and compliance. Complete 2026 guide for NGOs in India.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.cashfree.com\/blog\/section-8-company\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Section 8 Company? Registration, Fees, Benefits Explained\" \/>\n<meta property=\"og:description\" content=\"Learn what a Section 8 company is, registration process, fees, benefits, and compliance. 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