Section 8 Company Registration in India – NGO Registration Process, Fees, Benefits & Compliance (2026)

A Section 8 Company is a non-profit organization registered under the Companies Act, 2013, for promoting charity, art, science, or social welfare without profit distribution.

Section 8 companies offer higher credibility, stricter compliance, and easier access to CSR funds from corporate donors compared to Trusts or Societies.

No. All income and profits must be strictly utilized for promoting the social objectives of the company. No dividends are allowed.

No. A Section 8 Company can be started with zero capital and does not require any fixed paid-up amount for incorporation.

12A provides income tax exemption to the NGO, while 80G allows donors to claim tax deductions on their contributions, significantly boosting fundraising.

INC-12 is the specialized application filed with the ROC to obtain the central license that permits a company to operate as a Section 8 (Non-Profit) entity.

Yes. Being a separate legal entity, it can buy, hold, and sell property (land/office) in its own name.

No. Section 8 companies are exempt from using these suffixes. They can use words like Foundation, Forum, Association, or Council.

Mandatory annual compliances include filing of financial statements (AOC-4), Annual Return (MGT-7), and Income Tax Return (ITR-7).

Funds can be raised through donations, government grants, CSR funding from companies, and foreign contributions (subject to FCRA approval).

Yes, but the process is complex and requires the approval of the Regional Director (RD). It involves surrendering the tax benefits and the Section 8 license.

No. While most choose terms like Foundation, Association, or Council, there is no legal mandate to include "NGO" in the official name.

Yes. A Section 8 company can invest its funds, but all dividends or returns from such investments must be strictly used for its non-profit objectives.

NGO Darpan is a portal by NITI Aayog. Registration is mandatory if the Section 8 company intends to apply for central or state government grants.

Yes. A foreign national can be a director, provided at least one director on the board is a resident of India.

Generally, no. Directors are expected to work in an honorary capacity. However, they can be paid reasonable remuneration for actual professional services rendered, subject to approval.

Upon revocation, the company must add "Limited" or "Private Limited" to its name and will lose all tax exemptions. The ROC may also order its winding up.

Yes. Every Section 8 company must have its accounts audited by a practicing CA annually, regardless of its turnover or activity level.

Yes. A Section 8 company can be incorporated either with share capital or as a company limited by guarantee without share capital.

The RD oversees the issuance and monitoring of Section 8 licenses. Major changes like object modification or conversion require RD approval.

No. These are separate registrations under the Income Tax Act. You must apply for them after the company is incorporated to avail tax benefits.

CSR-1 is a mandatory filing on the MCA portal for any NGO (including Section 8) that wishes to receive Corporate Social Responsibility (CSR) funds from companies.

Yes, but only after obtaining registration or prior permission under the Foreign Contribution (Regulation) Act (FCRA).