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, companies meeting the Section 135 thresholds must spend at least 2% of their average 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 prepares and files Form CSR-1, and the MCA system generates your CSR Registration Number once the form is successfully submitted.

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
Section 8 eligibility and charitable-object review	✓	✓	✓
MCA name reservation filing and approval tracking	✓	✓	✓
2 Class-3 DSCs for proposed directors	✓	✓	✓
DIN allotment for up to 2 directors	✓	✓	✓
Section 8 licence application and SPICe+ incorporation filing	✓	✓	✓
Section 8 e-MOA (INC-13) drafting	✓	✓	✓
Section 8 e-AOA (INC-31) drafting	✓	✓	✓
Certificate of Incorporation/CIN and company PAN/TAN handover	✓	✓	✓
EPFO (PF) and ESIC (ESI) registration applications, where applicable	✓	✓	✓
GST registration application for 1 eligible GSTIN	—	✓	✓
GST application tracking and GSTIN certificate handover	—	✓	✓
GSTR-1 filing support for the first 3 consecutive months	—	✓	✓
GSTR-3B filing support for the first 3 consecutive months	—	✓	✓
Monthly records checklist and filing summary for the 3-month period	—	✓	✓
INC-20A preparation and filing, where legally required	—	—	✓
Trademark search and TM-A filing for 1 mark in 1 class; government fee extra	—	—	✓

Information group	Examples	Preparation note
Entity / applicant details	Legal name, constitution, PAN or other identifier, address and authorised representative	As applicable; match official records
Prior filings and notices	Previous acknowledgements, registrations, orders, notices or portal status	Include complete and current copies
Financial / activity records	Books, statements, invoices, payroll, contracts or activity evidence relevant to this service	Period and format depend on the service
Approvals and declarations	Board/partner/member resolution, consent, authorisation, declaration or professional report if required	Only where prescribed for the chosen route
Payment and signature readiness	Bank/payment proof and valid DSC/e-sign or OTP access, if required	Government fee and professional fee shown separately

Milestone	What determines it	Important note
Legal deadline	Depends on the applicable Act/Rules, event date, tax period, notice or return category	Confirm the live due date and any extension on the official portal
Government charges	May depend on entity type, state, capital, class, period or late filing	Verify the current official fee calculator/schedule before payment
Professional service timeline	Starts after complete documents, approvals and client confirmation	Authority review, queries and processing time are outside TaxQue’s control
Follow-up / correction	Additional information or a response may be required after submission	Deadlines stated in an official notice take priority
Deliverable	Filing acknowledgement and payment evidence, where generated	No approval or sanction is promised

Service element	TaxQue process	What the client can verify
Scope clarity	Written list of included work, client inputs, government payments and exclusions	Engagement scope
Reviewable preparation	Draft and key assumptions are shared for factual confirmation before submission	Client review
Official evidence	Acknowledgement and payment proof are shared when generated by the portal	Filing record
Status follow-up	Queries and next steps are explained with the relevant deadline	Authority-controlled outcome

Compliance area	Action to consider	Record to retain
Related records	Check statutory registers, resolutions, accounts and prior filings affected by this event	Keep records consistent with the filed form
Other applicable filings	Identify linked event-based, annual, tax, labour or state filings where applicable	Separate scope and fees may apply
Evidence retention	Retain approvals, forms, challans and acknowledgements in the entity’s records	Maintain the official filing trail

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