You have a genuine social mission. Running it informally through a trust or society exposes you to personal liability, fund account restrictions, and donor credibility gaps that an unregistered vehicle simply cannot solve. A Section 8 Company under the Companies Act 2013 is the gold-standard legal structure for Indian NGOs and non-profits that want corporate identity, limited liability, and the ability to raise funds from government, CSR pools, and institutional donors. Section 8 of the Act (along with Sections 7 and 12) sets the exact requirements: a licence from the Regional Director, objects confined entirely to charitable purposes, and a legal bar on distributing profits to members. KAMRIT manages the complete filing stack end to end. We handle name reservation through the MCA RUN service, obtain the INC-12 licence from the Regional Director, complete incorporation through SPICe+ Part B, and register for PAN and TAN. Everything moves through the MCA21 portal. Starting fee is ₹5,899 professional charges plus applicable government fees and state stamp duty, quoted precisely once we know your authorised capital and registered state.
What is Section 8 Company (NGO) in India 2026?
A Section 8 Company is a licence granted under Section 8 of the Companies Act 2013 to a company whose objects are confined to charitable, religious, or educational purposes. Unlike a trust registered under the Indian Trusts Act 1882 or a society under the Societies Registration Act 1860, a Section 8 company enjoys corporate perpetual succession, separate legal personality, and limited liability for its members. It is governed by the Companies Act 2013 in its entirety, including mandatory annual filings with the MCA, board meetings, and audited financial statements under Schedule III. Critically, the company cannot pay dividends or distribute profits in any form to its members; every rupee of surplus must be ploughed back into stated charitable objects. The licence is issued by the Regional Director of the Ministry of Corporate Affairs, and the entity is incorporated like any other company via the MCA21 portal. As of 2026, the government has also strengthened reporting norms under the Companies (CSR Policy) Rules 2014, making the Section 8 structure the most transparent and donor-trustworthy non-profit vehicle available in India. It applies to founders of NGOs, foundations, associations, chambers of commerce, and social enterprises that operate on a not-for-profit basis.
Who needs this
Section 8 eligibility is governed by the Companies Act 2013 Section 8(1). The following conditions must all be met before filing.
- The proposed company must have objects that are purely charitable, religious, educational, or of public utility under Section 8(1)(a).
- No object of the company may involve distributing any profit to its members under Section 8(1)(c).
- All income and surplus must be applied solely toward promoting the stated objects, never returned to members.
- At least one director must hold a valid Digital Signature Certificate (DSC) registered on the MCA portal.
- Every proposed director must obtain a Director Identification Number (DIN) through Form DIR-3 before filing.
- The registered office must be located in India, with a valid address proof and No Objection Certificate from the property owner.
- The Memorandum of Association must contain a declaration that the members have no right to receive dividends.
- The company must have a minimum of two members for a private Section 8 company, or seven for a public Section 8 company.
- The proposed name must not be identical or too similar to an existing MCA-registered company or a registered trademark.
- For SPICe+ Part B filing, the authorised capital must be declared; no minimum capital is mandated by Section 8, but a nominal capital structure is expected for genuine charitable entities.
Documents required
KAMRIT requires a complete digital document pack at kickoff. All PDFs must be clear, self-attested or notarised as specified, and less than 6 months old for address proofs.
- PAN Allotment Letter or Aadhaar for each proposed director and subscriber. PAN is mandatory for Indian nationals; for foreign nationals, passport and overseas address proof are required.
- Address proof for each director: voter ID, driving licence, passport, or bank statement with photograph (self-attested, latest 2 months).
- Registered office address proof: rental agreement or ownership deed, along with NOC from the property owner in the prescribed MCA format.
- Passport-size photographs (2 nos.) for each director, with name and DIN written on the back.
- Digital Signature Certificates (DSC) for all directors: Class 2 or Class 3, issued by an MCA-recognised certifying authority such as eMudhra, Sify, or Capricorn.
- Draft Memorandum of Association (MOA) with objects clause aligned to Section 8(1) charitable requirements.
- Draft Articles of Association (AOA) conforming to Table F, G, or applicable Table of the Companies Act 2013.
- Form INC-12 application for Section 8 licence, verified by a Chartered Accountant or Company Secretary, along with the CA/CS declaration on letterhead.
How KAMRIT runs it, step by step
The Section 8 registration path has two parallel streams: name approval through MCA RUN and the licence application through INC-12, followed by incorporation via SPICe+ Part B.
- KAMRIT Kickoff and Document Audit. KAMRIT receives your completed KYC pack and reviews every document for MCA compliance. We verify DIN status of all proposed directors, confirm DSC validity, and raise any deficiencies before filing. This stage takes 1 to 2 working days from receipt of complete documents. If any director lacks a DIN, KAMRIT files Form DIR-3 simultaneously to obtain DIN within 1 to 2 working days.
- Name Reservation through RUN Service. KAMRIT files the Reserve Unique Name (RUN) application on the MCA portal with two proposed names and the suggested suffix 'Foundation', 'Society', 'Trust', or 'Association' to signal the charitable intent. The MCA typically processes RUN within 2 to 5 working days. Name approval is valid for 20 days and must be used in the SPICe+ Part B filing before expiry.
- Drafting MOA and AOA. With the approved name in hand, KAMRIT's Company Secretaries draft the Memorandum of Association and Articles of Association tailored to your specific charitable objects. The MOA objects clause must precisely reflect Section 8(1)(a) of the Companies Act 2013 and pass the Regional Director's scrutiny. The AOA must include the statutory bar on dividend distribution. Drafting takes 1 to 2 working days and goes through one client review round before finalisation.
- INC-12 Filing for Section 8 Licence. KAMRIT files Form INC-12 (Application for Licence under Section 8) with the relevant Regional Director. The form is filed as an attachment to the INC-12 e-Form and includes the draft MOA, AOA, and a declaration from a Chartered Accountant or Company Secretary confirming the company has no intention of paying dividends. Government fee for INC-12 is nil (no separate fee prescribed), but the CA/CS verification fee is included in KAMRIT's professional charges. The Regional Director typically takes 15 to 30 working days to process and issue the licence.
- SPICe+ Part B Incorporation Filing. Once the Section 8 licence is received, KAMRIT files SPICe+ Part B on the MCA portal within the RUN name approval window. The form captures director details, registered office, capital structure, and embeds the approved MOA and AOA. PAN and TAN application is filed simultaneously through the SPICe+ agate form. MCA system processing of SPICe+ Part B takes 1 to 3 working days. Government fees for SPICe+ are based on authorised capital: for capital up to ₹15 lakh, the fee is approximately ₹2,000; ₹1,000 per ₹1 lakh for capital between ₹15 lakh and ₹50 lakh; and ₹5 per ₹1,000 for capital above ₹50 lakh (excluding stamp duty).
- Certificate of Incorporation and Post-Registration. The MCA issues the Certificate of Incorporation (COI) with the company registration number and CIN once SPICe+ Part B is approved. The PAN and TAN intimation letters are dispatched separately by the respective Income Tax and NSDL-TIN wing, typically within 15 to 20 working days of SPICe+ filing. KAMRIT delivers all certificates digitally and manages the subsequent mandatory registrations including GST (if turnover threshold under CGST Act 2017 Section 22 is met), FCRA if foreign donations are anticipated, and 80G registration under the Income Tax Act 1961 for donor tax benefits.
Timeline
From the day KAMRIT receives complete documents, KAMRIT-controlled stages (document audit, RUN filing, MOA/AOA drafting, SPICe+ Part B submission) take approximately 5 to 8 working days. Government-controlled stages determine the overall end-to-end duration. The RUN name approval from MCA takes 2 to 5 working days. The INC-12 licence from the Regional Director typically takes 15 to 30 working days, though processing times at different Regional Director offices (Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Ahmedabad, Bangalore) can vary. After the licence is received, SPICe+ Part B incorporation processes within 1 to 3 working days at the MCA system level. Overall, a realistic end-to-end timeline from kickoff to Certificate of Incorporation in hand is 25 to 45 working days in routine cases. If the Regional Director raises objections to the MOA objects clause, a resubmission adds 15 to 25 working days. PAN and TAN certificates arrive 15 to 20 working days after incorporation. Post-registration filings such as 80G and FCRA involve separate applications and timelines not included in the base registration scope. KAMRIT provides a Gantt-style status tracker accessible to clients throughout the process.
How our pricing compares
KAMRIT's starting professional fee for Section 8 Company registration is ₹5,899. This covers document review, DIN management, RUN filing, MOA/AOA drafting, INC-12 filing, SPICe+ Part B filing, MCA processing follow-up, and digital delivery of all certificates. Government fees for SPICe+ Part B are charged separately: approximately ₹2,000 for authorised capital up to ₹15 lakh, rising to ₹7,000 for capital up to ₹50 lakh, plus state stamp duty on MOA and AOA, which ranges from ₹500 to ₹5,000 depending on the state and capital declared. There is no separate government fee for the INC-12 licence. IndiaFilings prices Section 8 registration at ₹14,999 to ₹24,999, LegalRaasta at ₹9,999 to ₹14,999, VakilSearch at ₹15,999 to ₹25,000, and ClearTax at ₹16,999 to ₹22,999, with most of these including government fees in the headline figure. KAMRIT's ₹5,899 is positioned as the professional fee component at a rate that undercuts the market significantly. When competitors bundle government fees at ₹2,000 to ₹7,000 on top of their ₹10,000 to ₹18,000 professional charges, KAMRIT delivers the same professional service with a dedicated Company Secretary and Chartered Accountant team for the ₹5,899 professional component. Government fees at ₹2,000 to ₹7,000 (depending on capital) are always pass-through and identical regardless of which service provider you choose. KAMRIT's price advantage is structural: lower overheads, direct partner involvement, and a focused non-profit registration vertical mean you pay less for the same certified output. Stamp duty varies by state and will be quoted separately based on your registered office location. Courier charges for physical certificate dispatch, if required, are additional at ₹500.
Common mistakes KAMRIT avoids
First-time Section 8 applicants routinely trip up on the following. All of these are avoidable with proper drafting and sequencing.
- Drafting MOA objects clauses too broadly: the Regional Director routinely rejects MOAs with vague objects. Clauses must specifically reference charitable purposes under Section 8(1)(a) and demonstrate that no profit will accrue to members.
- Trying to file SPICe+ Part B before the INC-12 licence is in hand: the SPICe+ form requires the licence number as a mandatory input. Simultaneous or reverse filing is technically not possible and causes rejection.
- Using a director who does not have a DIN already allotted: DIN must be obtained before the SPICe+ filing. Filing DIR-3 and SPICe+ simultaneously causes a technical rejection at the MCA gateway.
- Incorrect RUN name choices: the MCA regularly rejects names that are identical to existing companies or that include restricted words like 'National', 'International', or 'Institute' without justification. KAMRIT pre-checks against the MCA master data before filing.
- Ignoring the FCRA requirement at registration stage: if your NGO will receive foreign donations, the FCRA registration must be applied for separately with the Ministry of Home Affairs within six months of incorporation. Retroactive FCRA applications are more complex and attract scrutiny.
- Assuming the Section 8 licence is permanent: the Regional Director can cancel the licence under Section 8(4) of the Act if the company fails to maintain charitable objects or lodges its annual return incorrectly for three consecutive years.
- Under-declaring authorised capital to save stamp duty: this creates problems at CSR compliance stage when the company needs to undertake expenditure proportional to 2% of average net profit. A correctly sized capital structure avoids amendment filings later.
- Filing Form AOC-4 and MGT-7 late: even non-profit companies must file annual returns and financial statements. Late filing attracts MCA compounding fees of ₹1,000 per day of default under the Companies Act 2013 penalty regime.