Section 8 Company Registration: Full Guide with NITI Aayog, 12A, 80G & CSR-1

In India, organizations aiming to operate as non-profits often choose to register as a Section 8 Company Registration, a special type of company recognized under the Companies Act, 2013. Unlike regular businesses, these companies are not established to earn profits but to promote social welfare, charitable causes, science, arts, education, and more.

Section 8 Companies enjoy significant advantages including tax exemptions, recognition under various government portals, and eligibility for receiving CSR funds. In this article, we’ll walk you through the complete process of Section 8 Company registration, and how to obtain important licenses like NITI Aayog Registration, Darpan Registration, 12A and 80G, FCRA, and CSR-1.

What is a Section 8 Company?

A Section 8 Company is a legal entity formed with the objective to promote commerce, arts, science, research, education, sports, charity, social welfare, and environmental protection. Unlike other companies, it does not distribute profits among its members but reinvests them for its objectives.

Key Characteristics:

• Non-profit motive
• Profits reinvested into the company
• Regulated by the Ministry of Corporate Affairs (MCA)
• Can accept donations and grants
• Eligible for tax exemptions

Benefits of Section 8 Company Registration

Benefit	Details
Tax Exemptions	Eligible for 12A and 80G registrations
Corporate Funding	Can receive CSR funds after CSR-1 registration
Government Grants	Recognized under NITI Aayog’s NGO-DARPAN portal
Credibility	Stronger compliance framework increases donor confidence
Separate Legal Identity	Has a distinct identity separate from its members
Perpetual Succession	Continues regardless of changes in membership

Documents Required for Section 8 Company Registration

• Identity proof (Aadhar/PAN/Voter ID) of Directors
• Address proof (utility bills or rent agreement)
• Photographs of all directors
• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• MoA & AoA with objectives
• Registered Office Address Proof

Process for Section 8 Company Registration

Step 1: Apply for DSC

Every director must obtain a Digital Signature Certificate (DSC) from a certified authority to sign electronic documents.

Step 2: Apply for DIN

Using SPICe+ form, directors must apply for Director Identification Number (DIN).

Step 3: Name Approval

Submit the name approval request via RUN (Reserve Unique Name) form. Ensure the name reflects your charitable objective.

Step 4: File SPICe+ Form

This integrated form includes company incorporation, PAN, TAN, and other registrations.

Step 5: Apply for License under Section 8

Submit INC-12 form with objectives, projected income-expenditure, and board resolutions to get a license.

Step 6: Incorporation

Once approved, the Certificate of Incorporation and Section 8 License are issued by the Registrar of Companies (RoC).

Post-Incorporation Mandatory Registrations

Once your Section 8 Company is registered, you must complete the following key registrations to ensure legal compliance and eligibility for grants and donations.

1. NITI Aayog Registration (NGO Darpan Portal)

NITI Aayog’s NGO Darpan Portal offers centralized recognition for NGOs to apply for government grants and schemes.

Why it's important:

• Required to apply for government projects
• Helps track NGO credibility
• Required for many ministries' funding

Documents Required:

• Certificate of Incorporation
• PAN of the organization
• Board member details
• NGO activities and registration number

2. 12A and 80G Registration

These are tax exemption certifications issued by the Income Tax Department:

12A: Allows income of the NGO to be exempt from tax.

80G: Allows donors to claim tax deductions on their donations.

Application Process:

• File Form 10A (for new registrations)
• Submit via the Income Tax portal
• Attach MoA, PAN, registration certificate, and financials

Why it's essential:

• Makes you eligible for donor support
• Increases trust and transparency
• Mandatory for applying to many funding bodies

3. CSR-1 Registration

To receive CSR funds from companies, NGOs must file Form CSR-1 with the Ministry of Corporate Affairs.

Eligibility:

• Must be a Section 8 Company, Trust, or Society
• Minimum 3 years of operations
• 12A and 80G registered

Documents Required:

• Certificate of Incorporation
• 12A/80G documents
• DSC of authorized signatory

4. FCRA Registration

The Foreign Contribution (Regulation) Act FCRA registration is required for NGOs that want to receive foreign donations.

Eligibility:

• NGO must be 3 years old
• Must have spent at least ₹15 lakh in the past 3 years on charitable activities

Two Types of Registration:

• FCRA Registration (for mature NGOs)
• Prior Permission (for new NGOs with a specific foreign donor)

Compliance and Annual Filings

A Section 8 Company is legally bound to comply with annual filings and disclosures. Here’s what you must do:

Filing	Form	Due Date
Annual Return	MGT-7	Within 60 days of AGM
Financial Statements	AOC-4	Within 30 days of AGM
Income Tax Return	ITR-7	July 31 (unless audited)
CSR Reporting (if any)	CSR-2	Along with AOC-4

Section 8 Company vs. Trust vs. Society

Feature	Section 8 Company	Trust	Society
Governing Act	Companies Act, 2013	Indian Trusts Act, 1882	Societies Registration Act
Registration Authority	MCA	Sub-Registrar	State Registrar
Compliance Level	High	Low	Moderate
Suitable For	Large-scale operations	Local philanthropy	Community-based programs
CSR-1 Friendly	Yes	Yes	Yes

Challenges in Section 8 Company Registration

• Lengthy Documentation: Multiple forms, attachments, and approvals required
• Compliance Burden: Higher ongoing legal and financial compliance compared to trusts or societies
• Professional Help Needed: May require CA or legal consultant for smoother execution

Tips for Smooth Registration

• Choose a unique name that reflects your NGO’s mission
• Prepare accurate MoA and AoA with clear objectives
• Ensure all documents are up to date and consistent
• Get DSC and DIN early to avoid delays
• Apply for 12A/80G and CSR-1 soon after incorporation

Conclusion

Registering a Section 8 Company is one of the most credible and structured ways to launch a non-profit in India. It not only provides legal recognition but also opens doors to tax exemptions, government funding, CSR support, and international contributions. With additional registrations like NITI Aayog (Darpan), 12A/80G, CSR-1, and FCRA, your organization can operate with full compliance and gain the trust of donors and stakeholders. While the process may seem complex, the long-term benefits far outweigh the initial effort. With the right planning and execution, your NGO can make a lasting impact on society.