The most credible structure for a non profit. Better governance and donor confidence than a trust or society, which matters when you are applying for grants or CSR funding.
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TIMELINE
MINIMUM MEMBERS
GOVERNED BY
BEST FOR
The charitable objects are drafted first, because the licence turns on them. The name is then reserved.
The application for a Section 8 licence is filed with the projected income and expenditure statement and a declaration of intended activities.
Once the licence is granted, incorporation is filed and the Registrar issues the Certificate of Incorporation.
12A and 80G registrations are applied for separately, and CSR-1 is required before receiving corporate CSR funds.
A Section 8 licence establishes the non profit character of the company. It does not by itself exempt your income or make donations deductible for the donor. That requires separate 12A and 80G registrations with the Income Tax Department, and CSR-1 registration before any company can route CSR funds to you. Organisations frequently incorporate, start fundraising, and only then discover the donor cannot claim a deduction.
A Section 8 Company has the strongest governance and is usually preferred by institutional donors and CSR funders. Trusts and societies are quicker and cheaper to set up but carry less credibility with large funders.
No. Income must be applied towards the objects of the company. No dividend can be paid to members, and this is a condition of the licence.
Reasonable remuneration for actual services rendered is permitted, but it must be genuine and proportionate. Using salaries to distribute surplus risks the licence.
Only with separate FCRA registration or prior permission from the Ministry of Home Affairs. A Section 8 licence does not permit foreign contributions on its own.
The same annual filings as any company, including ROC returns, audited accounts and income tax returns, plus the conditions attached to 12A and 80G.
Tell us about your objects and we will confirm the structure and registrations you need.
