What is a Section 8 company
A Section 8 company is a non-profit organisation registered under the Companies Act for charitable, social, educational, scientific or similar objectives. Its profits, if any, must be used to promote its objectives and cannot be distributed to members. It is one of the most credible ways to run an NGO in India.
Section 8 company vs trust vs society
NGOs in India are commonly set up as a trust, a society or a Section 8 company. A Section 8 company generally offers the strongest credibility and governance, which helps with funding, grants and partnerships, though it also has more structured compliance than a trust or society.
Key features
- Non-profit objective — earnings reinvested, not distributed
- Separate legal identity and limited liability
- Higher credibility with donors and authorities
- Structured governance and compliance
- Eligibility to apply for relevant tax and grant benefits
Documents commonly required
- PAN and address proof of the proposed directors/members
- Passport-size photographs
- Registered office address proof and a no-objection certificate
- A clear statement of the organisation's objectives
- Proposed name options
The registration process in brief
The broad path is to obtain digital signatures, reserve a name aligned with the non-profit objective, prepare the governing documents, and apply for the licence and incorporation. Because Section 8 involves an additional approval for the non-profit licence, careful documentation matters.
How Aidwish helps
Aidwish helps you choose between a trust, society or Section 8 company, prepares the documentation, and handles registration and the related approvals — so your non-profit starts on a credible, compliant footing.