{“@context”:”https://schema.org”,”@type”:”BlogPosting”,”headline”:”Section 8 Company Registration in India: Licence, Process, Benefits and Compliance”,”description”:”Complete guide to Section 8 Company registration in India — how to get a Central Government licence via Form INC-12, eligible charitable objects, tax exemptions under 12A and 80G, dividend restrictions, and annual compliance requirements for non-profit companies.”,”author”:{“@type”:”Person”,”name”:”Tradeviser Editorial”},”publisher”:{“@type”:”Organization”,”name”:”Tradeviser”},”datePublished”:”2026-09-27″,”inLanguage”:”en-IN”,”mainEntityOfPage”:{“@type”:”WebPage”,”@id”:”https://tradeviser.com/section-8-company-registration/”}}

{“@context”:”https://schema.org”,”@type”:”FAQPage”,”mainEntity”:[{“@type”:”Question”,”name”:”What is a Section 8 Company in India?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”A Section 8 Company is a company formed under Section 8 of the Companies Act 2013 for promoting charitable, scientific, educational, social welfare, religious, or environmental purposes. The Central Government grants a licence permitting the company to drop the words ‘Limited’ or ‘Private Limited’ from its name. Profits must be applied only towards the stated charitable objects — no dividends can be declared to members.”}},{“@type”:”Question”,”name”:”What is Form INC-12 for Section 8 Company?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”Form INC-12 is the application filed with the Regional Director (ROC) to obtain the Central Government’s licence under Section 8 of the Companies Act 2013. It must be accompanied by the draft MOA and AOA, a declaration by an advocate/CA/CS that the company’s objectives are charitable, and a statement of receipts and payments (projected). On approval, Form INC-16 (the licence) is issued.”}},{“@type”:”Question”,”name”:”Can a Section 8 Company pay dividends?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”No. A Section 8 Company cannot pay dividends to its members. All profits and income of the company must be applied towards promoting its charitable, educational, scientific, or social purpose. Distributing any income or profit to members is a violation of the licence conditions and can result in revocation of the Section 8 licence and conversion to a regular company.”}},{“@type”:”Question”,”name”:”What tax exemptions does a Section 8 Company get?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”A Section 8 Company can apply for: (1) 12A registration — exempts the company’s own income from tax under the Income Tax Act; (2) 80G registration — allows donors who contribute to the company to claim a deduction (50% or 100% of the donation) on their own income. Both registrations are made with the jurisdictional Commissioner of Income Tax (Exemptions). FCRA registration (Foreign Contribution Regulation Act) is additionally required if the company plans to receive foreign donations.”}},{“@type”:”Question”,”name”:”What is the difference between a Section 8 Company and a Trust?”,”acceptedAnswer”:{“@type”:”Answer”,”text”:”A Section 8 Company is registered under the Companies Act 2013 (regulated by MCA/ROC). A Trust is registered under the Indian Trusts Act 1882 or state-specific trust acts (regulated by the Charity Commissioner or Registrar of Trusts). Section 8 Companies have a corporate structure with directors and members, file annual returns with the MCA, and have perpetual succession. Trusts are governed by trustees and have no perpetual succession unless the trust deed provides for it. Section 8 Companies are preferred for larger organisations with multiple stakeholders due to the corporate governance framework.”}}}]}

{“@context”:”https://schema.org”,”@type”:”HowTo”,”name”:”How to Register a Section 8 Company in India”,”step”:[{“@type”:”HowToStep”,”position”:1,”name”:”Obtain DSC and DIN”,”text”:”All proposed directors must obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN). This is the same as for any company registration.”},{“@type”:”HowToStep”,”position”:2,”name”:”Reserve a name via RUN”,”text”:”Apply for a name on the MCA portal. Note: Section 8 companies can use words like ‘Foundation’, ‘Forum’, ‘Association’, ‘Federation’, ‘Chambers’, ‘Confederation’, or ‘Council’ even though they typically cannot.”},{“@type”:”HowToStep”,”position”:3,”name”:”File Form INC-12 for Section 8 licence”,”text”:”File INC-12 with the Regional Director (via MCA portal) along with draft MOA/AOA, declaration from a practising CA/CS/advocate, and projected income-expenditure statement. A licence fee of ₹2,000 is payable.”},{“@type”:”HowToStep”,”position”:4,”name”:”Receive licence (Form INC-16)”,”text”:”Upon approval, the Regional Director issues Form INC-16 — the Section 8 licence. This confirms the company can operate as a Section 8 entity without ‘Limited’ or ‘Private Limited’ in its name.”},{“@type”:”HowToStep”,”position”:5,”name”:”File SPICe+ for incorporation”,”text”:”After the licence is in hand, file SPICe+ with the eMOA and eAOA, attaching the INC-16 licence. The ROC issues the Certificate of Incorporation.”},{“@type”:”HowToStep”,”position”:6,”name”:”Apply for 12A and 80G registrations”,”text”:”After incorporation, apply to the Income Tax Commissioner (Exemptions) for 12A (income tax exemption on entity’s income) and 80G (donation deductibility for donors) registrations.”}]}

CA Madhusmita Padal

CA Madhusmita Padal is a Practicing Chartered Accountant with firms based in Odisha and Chennai. She specializes in taxation, company law, and auditing. She is passionate about simplifying complex concepts and making knowledge accessible to all.