Section 8 Company

• Highest institutional credibility — MCA-governed structure preferred by corporate CSR departments, bilateral agencies, and government grant authorities
• No minimum share capital required; no dividend payment to members — all surplus applied to charitable objects
• No stamp duty on incorporation documents in most Indian states
• Full eligibility for all tax exemptions — 12A, 80G, FCRA, CSR-1, NGO Darpan
• Perpetual succession and limited liability for all directors and members
• Can own property, enter contracts, and sue or be sued in its own name
• Preferred structure for large-scale CSR partnerships and international grants

1. DSC & DIN: Obtain Digital Signature Certificate and Director Identification Number for all proposed directors
2. Name reservation: Reserve company name via RUN (Reserve Unique Name) on MCA portal
3. Section 8 Licence application: File Form INC-12 to the Regional Director of MCA with draft MOA, AOA, and charitable objects declaration
4. Receive Section 8 Licence: Regional Director reviews and issues INC-16 (Section 8 Licence) — typically 15–20 working days
5. SPICe+ incorporation: File SPICe+ with eMOA, eAOA, AGILE-PRO for final incorporation after licence is granted
6. Certificate of Incorporation: MCA issues COI with CIN — company is now legally incorporated

• INC-20A (Commencement of Business): File within 180 days of incorporation
• AOC-4 & MGT-7A: Annual financial statements and return filing with MCA
• DIR-3 KYC: Annual Director eKYC by 30th September
• ITR-7: Annual income tax return (after obtaining 12A registration)
• 12A & 80G Registration: Apply within 3 months of incorporation for tax exemption and donor deduction status
• NGO Darpan Registration: Mandatory for Central Government grant applications and FCRA
• CSR-1 Registration: Required to receive corporate CSR funds via MCA portal

Q: Can a Section 8 Company pay salaries to its directors?
Yes. Section 8 Company directors can receive reasonable remuneration for services rendered in an executive capacity, subject to Regional Director approval. Excessive or unreasonable remuneration attracts regulatory scrutiny and may be treated as a violation of Section 8 licence conditions.

Q: Is a Section 8 Company eligible for FCRA registration?
Yes. After 3 years of operations with audited accounts, filed ITR-7s, and an active NGO Darpan profile, a Section 8 Company is eligible to apply for FCRA registration via FC-3A on the MHA Seva portal — enabling it to receive foreign contributions from international donors.

Q: What happens if the company's objects need to be changed?
Any amendment to a Section 8 company's MOA objects requires filing Form INC-6 and obtaining prior approval from the Regional Director of MCA — a process taking 30–60 days. MFiling manages all such amendments.