Section 8 companies are incorporated for charitable purposes such as education, arts, science, or social welfare. These companies reinvest their profits into their objectives rather than distributing them as dividends.

• Operates as a non-profit entity.
• Exempted from using “Limited” or “Private Limited” in the company name.
• Eligible for tax exemptions under Sections 12A and 80G of the Income Tax Act.

• Legal Recognition: Provides a formal structure to manage non-profit activities.
• Credibility: Enhances trust among donors and stakeholders.
• Tax Benefits: Enables tax exemptions and eligibility for grants.

• Governed by Section 8 of the Companies Act, 2013.
• Requires approval from the Registrar of Companies (ROC) and the Central Government.
• Directors must meet the eligibility criteria set out by the Act.

• Reserve a unique name through the RUN application.
• Obtain Digital Signature Certificates (DSC) for directors.
• File incorporation documents such as MOA, AOA, and INC-12.
• Ensure the company’s objectives align with charitable purposes.

• Step 1: Apply for DSC and Director Identification Number (DIN).
• Step 2: Reserve the company name through the MCA portal.
• Step 3: File Form INC-12 for approval of the Section 8 company status.
• Step 4: Submit the MOA and AOA along with incorporation forms.
• Step 5: Obtain the Certificate of Incorporation upon approval.

• Delays in obtaining Central Government approval.
• Non-compliance with procedural requirements or documentation errors.
• Rejection due to name conflicts or objectives not aligning with charitable purposes.

• Identity and address proof of directors and members.
• MOA and AOA detailing the company’s objectives and governance.
• Proof of registered office address.
• Declaration by directors regarding compliance with Section 8 provisions.

• Submit name reservation and incorporation forms online via the MCA portal.
• The process typically takes 20-30 working days, subject to approvals.

• Government Fees: Rs. 1,000 to Rs. 5,000, depending on authorized capital.
• Professional Fees: For drafting documents, filings, and advisory services.
• Estimated Total Cost: Rs. 15,000 to Rs. 25,000, depending on complexity and assistance required.