Question 1

What is a Section 8 Company and how does it differ from a Trust or Society?

Accepted Answer

A Section 8 Company is a non-profit corporate entity incorporated under Section 8 of the Companies Act, 2013, dedicated to promoting commerce, art, science, sports, education, charity, environmental protection, or social welfare. Unlike traditional Trusts or Societies, a Section 8 Company enjoys central MCA recognition, nationwide operational validity, superior governance credibility, and zero donor state-boundary restrictions.

Question 2

What are the core legal characteristics of a Section 8 Company?

Accepted Answer

A Section 8 Company must apply all its profits and income towards promoting its non-profit objectives, and is strictly prohibited from paying any dividend, bonus, or return of capital to its members or directors. All funds remain dedicated to social impact.

Question 3

What are the minimum requirements to register a Section 8 Company?

Accepted Answer

You need a minimum of 2 Directors (at least one resident Indian), 2 Members/Shareholders, a registered office in India, and an explicit social/charitable object. No minimum paid-up capital is required, and the company is exempt from using 'Limited' or 'Private Limited' in its name.

Question 4

What is an MCA Section 8 Central Government License (Form INC-12)?

Accepted Answer

Before incorporation, the Central Government (delegated to ROC) grants a formal Section 8 Non-Profit License under Rule 19 of Companies (Incorporation) Rules after reviewing a detailed 3-year projected Income & Expenditure budget, proposed social welfare programs, and founder declarations. TaxQue drafts your complete INC-12 project dossier.

Question 5

How long does it take to incorporate a Section 8 Company with TaxQue?

Accepted Answer

The process takes approximately 10 to 14 working days. This covers Class 3 DSC procurement, Name Reservation (SPICe+ Part A with non-profit suffixes like Foundation, Forum, Association, Council), Section 8 License grant, and Certificate of Incorporation issuance with PAN, TAN, and DIN.

Question 6

Who will manage our Section 8 incorporation at TaxQue?

Accepted Answer

Your non-profit incorporation is led by a specialized Company Secretary and NGO Legal Strategist, with final review by a practicing Chartered Accountant. We ensure MOA objects are aligned with Section 12AB and 80G tax exemption requirements.

Question 7

What documents are required to register a Section 8 Company?

Accepted Answer

Founders must provide: Self-attested PAN Card, Identity Proof (Passport, Voter ID, or DL), latest Bank Statement or Utility Bill (< 2 months old), passport photos, a detailed 3-year financial budget projection, and registered office address proof with landlord NOC.

Question 8

How do we obtain 12AB Income Tax Exemption and 80G Tax-Deductible status?

Accepted Answer

Incorporating a Section 8 Company establishes its corporate identity, but does NOT grant automatic tax exemption. To make the company's income 100% tax-free and allow donors to claim 50% tax deductions, you must apply for 12AB and 80G registration on the Income Tax portal via Form 10A. TaxQue includes 12AB & 80G applications in our non-profit bundles.

Question 9

Can a Section 8 Company receive foreign donations under FCRA?

Accepted Answer

Yes. After 3 years of verifiable charitable activities, a Section 8 Company can apply for Foreign Contribution Regulation Act (FCRA) registration with the Ministry of Home Affairs (MHA) to receive international grants. For specific one-off international projects, Prior Permission (FCRA-PP) can be obtained earlier. TaxQue provides FCRA advisory.

Question 10

Can directors draw a salary or remuneration from a Section 8 Company?

Accepted Answer

Under Section 8(1)(c), profits cannot be distributed. However, reasonable remuneration or reimbursement of out-of-pocket expenses can be paid to a director for actual professional services rendered (e.g. as a full-time Managing Director or technical advisor), provided it is approved by the Board and authorized under the Articles of Association.

Question 11

What is CSR-1 Registration and can a Section 8 Company receive CSR grants?

Accepted Answer

Yes. Under Section 135 of the Companies Act, corporate entities must spend 2% of net profits on CSR activities. A Section 8 Company with 12AB and 80G registrations can file Form CSR-1 on the MCA portal to become eligible to receive corporate CSR funds. TaxQue secures your instant MCA CSR-1 allotment.

Question 12

What annual compliances are mandatory for a Section 8 Company?

Accepted Answer

A Section 8 Company must hold an AGM, undergo mandatory Statutory Audit by a practicing CA, file annual financial statements (Form AOC-4), annual returns (Form MGT-7/7A), complete Director KYC (DIR-3 KYC), file Form 10BD donation reports, and file ITR-7 annually. TaxQue provides all-in-one NGO Annual Compliance management.

Question 13

Can a Section 8 Company be converted into a regular commercial company later?

Accepted Answer

Under Section 8(4)(ii) and Rule 21, converting a Section 8 company into a for-profit company is extremely difficult, requiring special resolutions, settlement of all charitable assets, and strict Regional Director (RD) approval. We advise setting up a separate commercial subsidiary if you plan to launch commercial ventures.

Question 14

What is the fee for Section 8 Company Registration with TaxQue?

Accepted Answer

We offer transparent fixed pricing covering Name Reservation, 2 Class 3 DSCs, 3-year financial budget drafting, Section 8 License grant, Certificate of Incorporation, PAN/TAN, DINs, and stamp duties, with zero hidden costs.

Question 15

How do we receive our official Section 8 Incorporation Certificate?

Accepted Answer

Upon approval by the Registrar of Companies (ROC), you receive the official Certificate of Incorporation containing your Corporate Identification Number (CIN) and government Section 8 License.

Question 16

What post-incorporation NGO support does TaxQue provide?

Accepted Answer

We assist with Opening NGO Bank Accounts, Form INC-20A filing, Darpan NITI Aayog Portal Registration, 12AB & 80G Income Tax Registration, and Form CSR-1 allotment for corporate funding.

Feature & Deliverable Matrix	Basic	Standard★ Most Popular	Premium
Name Availability Verification & Portal Reservation Assistance	✓	✓	✓
Drafting of MOA, AOA / Deed & Statutory Declarations	✓	✓	✓
Official Government Portal Filing & Document Submission	✓	✓	✓
Certificate of Incorporation / Registration Delivery	✓	✓	✓
Entity PAN & TAN Allocation Coordination	✓	✓	✓
Assigned Company Secretary (CS) & Corporate Legal Advisor	—	✓	✓
Class-3 Digital Signature Certificates (DSC) & Director DINs	—	✓	✓
Assisted Corporate Bank Current Account Opening Setup	—	✓	✓
Mandatory EPFO, ESIC & State Tax Registrations Included	—	✓	✓
1st Board Meeting Resolutions & INC-20A Commencement Filing	—	—	✓
Custom Shareholder & Co-Founder Agreement Drafting (SHA/SSA)	—	—	✓
Free Comprehensive Trademark Brand Search & Class Verification	—	—	✓
Dedicated Corporate Advisory Desk for Annual ROC Compliances	—	—	✓

Stakeholder / Document	Mandatory Documentation Checklist	Verification Guidelines
Founding Directors & Members (Min 2)	PAN Card, Aadhaar Card, Passport Size Photo, Bank Statement / Utility Bill (< 2 months)	Self-attested color copies of all promoters
Registered Office Proof	Electricity Bill / Municipal Tax Receipt (< 2 months) + Rent Agreement + Landlord NOC	Verifiable premises utility bill
Charitable Object & Future Projections	3-Year estimated future income & expenditure projections + asset estimates	Prepared by Chartered Accountant
Non-Profit Declarations	Declaration by practicing CS / CA (Form INC-14) and Promoters' Declaration (Form INC-15)	Mandatory statutory declarations

Compliance Event / Form	Statutory Due Date	Statutory Penalties for Default
INC-20A (Commencement Filing)	Within 180 days of incorporation	₹50,000 on company + ₹1,000/day on directors
AOC-4 (Annual Financial Accounts)	Within 30 days of AGM (30th October)	₹100 per day continuing penalty with no upper limit
MGT-7 (Annual ROC Return)	Within 60 days of AGM (29th November)	₹100 per day continuing penalty under Section 92(5)
ITR-7 Return Filing	31st October of Assessment Year	Tax exemption loss + taxation at Maximum Marginal Rate (30%) under Sec 115BBI

Structural Parameter	Statutory Rule	Legal Reference
Minimum Promoters / Directors	Minimum 2 Directors, Minimum 2 Shareholders	Section 149 & Section 3 Companies Act
Dividend Payment Restriction	100% prohibited (Profits must be reinvested in objects)	Section 8(1)(b) Companies Act 2013
CSR-1 Eligibility	Eligible immediately upon holding active 12A & 80G registrations	Companies (CSR Policy) Rules 2014
Foreign Contributions (FCRA)	Eligible to apply after 3 years of active operations	Foreign Contribution Regulation Act 2010

Parameter	Section 8 Company	Charitable Trust	Registered Society
Governing Authority	Ministry of Corporate Affairs (Central Govt)	State Sub-Registrar / Charity Commissioner	State Registrar of Societies
Nationwide Recognition	Universal corporate identity across all Indian states	State-specific jurisdiction issues	State-specific jurisdiction issues
CSR & Corporate Funding	First preference of CSR committees & MNC donors	Subject to heavier scrutiny	Subject to heavier scrutiny
Transparency & Governance	Mandatory annual MCA filings & audit	Varies widely by state rules	Annual renewal disputes common

Accounting

Section 8 Registration

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Get Free Expert Consultation

Right Plan For Section 8 Registration

Section 8 Non-Profit Company Registration & Incorporation Services

What is Section 8 Registration?

Strict Profit Non-Distribution Mandate

How to Get Started

Charitable Objects Drafting & RUN Name Approval

Section 8 Central License & SPICe+ Portal Filing

Central Registration Centre Approval & NGO Setup

Documents Required for Section 8 Registration

Statutory Deadlines & Compliance Matrix for Section 8 Companies

Section 8 Company Structural Thresholds

Why Choose Section 8 Registration

Specialized Non-Profit Charter Drafting

Complete 12A, 80G & CSR-1 Pathway

Highest Donor Credibility Structure

Eligibility Criteria for Section 8 Registration

1Social Promoters & Visionaries

Section 8 Company vs Traditional Trust / Society

Key Features of TaxQue Section 8 Setup

Central Section 8 License

12A & 80G Ready

CSR-1 Registration Desk

Frequently Asked Questions

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