Section 8 Company (Charitable)

Non-profit charitable company with 12A & 80G exemption eligibility

Who needs this: Company formed for charitable, religious, educational, scientific, social purposes; not for profit; must reinvest surplus into charitable activities

Indicative fees: ₹8,000–₹20,000 (MCA SPICe+ filing + DSC + government approvals + professional drafting)

Step-by-step process

Secure Registrar of Charitable Trusts approval (if applicable in your state) before MCA incorporation
Obtain DSC for all founders/directors from authorized provider
Draft Memorandum of Association (MOA) specifically stating Section 8 charitable objects — education, medical, social welfare, etc.
Draft Articles of Association (AOA) with no-profit clause and provisions that surplus must be reinvested into charitable objectives
Draft Board Resolution confirming charitable purpose and no personal benefit to members or directors
File incorporation application on MCA SPICe+ portal with Section 8 declaration
Upload documents: MOA, AOA, DIR-2 (Director Consent), Declaration by Subscribers, founder Aadhaar/PAN, trustees list
MCA issues Certificate of Incorporation with Section 8 status within 3–5 working days
Apply for 12A Registration (tax-exempt status) to Income Tax Department — file Form 10A within 1 year of incorporation
Submit 12A application with company registration certificate, MOA, AOA, board resolutions, and certified accounts for past 3 years (if applicable)
Income Tax Officer examines application; grants 12A approval, usually within 90 days
Once 12A granted, apply for 80G Registration to enable donors to claim tax deduction on contributions
File annual income tax return (Form 10A) by 31 July to maintain 12A status
Maintain statutory registers and records of charitable activities, beneficiaries, expense statements
Get annual audit from Cost Accountant/CA if turnover exceeds ₹50 L; submit audit report to Registrar

Section 8 Company (Charitable)

Step-by-step process

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