NGO & Trust
Section 8 Company Registration
The NGO structure corporate CSR donors and foreign funders take seriously.
There are three ways to register a non-profit in India — a Trust, a Society or a Section 8 company — and the choice determines who will fund you. Corporate CSR departments and foreign funders almost always prefer a Section 8 company, because it files audited accounts with the MCA every year and its governance is a matter of public record.
That transparency is also the cost. A Section 8 company carries the same annual compliance burden as any private limited company: statutory audit, AOC-4, MGT-7, board meetings. If your work is small-scale and single-state, a Trust may serve you better and costs far less to maintain. We will say so before you pay us.
Who needs this
- NGOs intending to approach corporate CSR funds
- Organisations that will eventually apply for FCRA to receive foreign contributions
- Non-profits with activities spanning more than one state
- Founders who want a governance structure that survives changes in leadership
- Social enterprises where credibility with institutional donors matters
Documents required
Photographs of documents are fine. Nothing needs printing, notarising or couriering to us.
For every director and subscriber
- PAN card
- Aadhaar card
- Passport-size photograph
- Identity proof — voter ID, driving licence or passport
- Address proof, not older than two months
For the registered office
- Utility bill, not older than two months
- No-objection certificate from the owner
- Rent agreement, if rented
Specific to Section 8
- Draft memorandum of association in Form INC-13, setting out the charitable objects
- Declaration in Form INC-14 by a practising CA, CS or Cost Accountant
- Declaration in Form INC-15 by each applicant
- An estimate of income and expenditure for the next three years
How the process runs
- Day 1–3
Structure and objects
We advise on Trust versus Society versus Section 8, then draft the charitable objects. Vague objects are the most common reason these applications come back.
- Day 4–5
DSC and name reservation
Digital signatures issued and the name filed. Section 8 names cannot use ‘Private Limited’ — they typically end with Foundation, Association or Sansthan.
- Day 6–10
Declarations prepared
INC-13 memorandum, INC-14 professional declaration and INC-15 applicant declarations drafted and executed, with the three-year projection.
- Day 11–14
SPICe+ filed
Incorporation filed with the Section 8 licence application. Since 2020 a separate INC-12 application is no longer needed for a fresh incorporation — the licence is issued through the same filing.
- Day 15–25
Licence and certificate
The Section 8 licence is issued, followed by the Certificate of Incorporation, PAN and TAN.
What the fee covers
Included
- Advice on the right structure before you commit
- DSC for two directors
- DIN allotment
- Name reservation with alternatives
- Drafting of charitable objects and the INC-13 memorandum
- INC-14 and INC-15 declarations
- Three-year income and expenditure projection
- SPICe+ filing with the Section 8 licence application
- PAN and TAN
Charged separately
- Government fees and stamp duty — billed at cost
- 12A and 80G registration (quoted separately, and best filed straight after)
- FCRA registration, which requires three years of operation
- Darpan registration on the NITI Aayog portal
Government charges are passed through at cost with the receipt attached to your invoice. We do not mark them up.
Key facts
| Governing law | Section 8, Companies Act, 2013 |
|---|---|
| Minimum directors | 2 for a private Section 8 company, 3 for a public one |
| Minimum capital | None prescribed |
| Dividend | Prohibited — surplus must be applied to the objects |
| Name | Cannot contain ‘Private Limited’; typically Foundation, Association, Sansthan |
| Licence issued in | Form INC-16 or INC-17 |
| Annual compliance | Statutory audit, AOC-4, MGT-7, ITR-7, board meetings |
Questions people ask
It comes down to funding and reach. Section 8 carries the most weight with corporate CSR donors and foreign funders because its accounts are filed publicly with the MCA, but it costs the most to maintain. A Trust is quickest and cheapest and works well for single-state charitable work funded by individuals. A Society sits in between and suits membership-based organisations. We give you this advice free, before you pay for anything.
Yes. A Section 8 company cannot distribute profit as dividend, but it can pay reasonable remuneration for actual services rendered. The amount should be defensible against the scale of your activity — excessive director remuneration is a common trigger for scrutiny during 12A or 80G assessment, and for CSR due diligence.
Immediately after incorporation. 12A gives the organisation exemption from income tax; 80G lets your donors claim a deduction. Without 80G, most individual donors and every CSR department will hesitate. The application is separate and takes a further 30 to 45 days, so starting early matters.
Not immediately. FCRA registration generally requires three years of existence and a track record of activity, with a minimum spend on your objects over that period. Prior-permission FCRA for a specific project from a specific donor is possible earlier but is granted case by case.
Realistically, budget for annual audit, AOC-4 and MGT-7 filings, ITR-7 and, once you have 80G, the Form 10BD donation statement. It is genuinely more expensive than a Trust. If your annual budget is very small, be honest with yourself about whether the structure earns its keep.
Not sure this is the right filing for you?
Fifteen free minutes with the team. We will tell you which registration applies to your situation — and which ones you have been told you need but do not.
Statutory fees, thresholds and forms described on this page were accurate when last reviewed and are subject to change by the relevant authority. We confirm the current position before filing on your behalf. This page is general information, not advice on your specific situation.