A Section 8 company promotes commerce, art, science, sports, education, research, social welfare, religion, charity, environment or a similar object. Profits, if any, are applied to those objects and cannot be paid as dividend. Donors and grants often prefer this form because MCA regulates it. The licence is a separate approval before or along with incorporation, and the name, objects and declarations are examined more closely than a trading company.
Who this is for
- Foundations and charitable projects
- Research or education initiatives that want a company, not a trust
Documents usually needed
- KYC and DSC of directors and subscribers
- Draft objects and a projection of income and spend
- Registered office proof
- Declarations required for the section 8 licence
How Digital Filings handles it
- Draft objects and confirm they fit section 8.
- File the licence and incorporation set.
- After approval, hand over the COI and a list of what the company must not do — including dividend.
Timeline
Often three to eight weeks because the licence is reviewed, not only the incorporation form.
Questions people ask
Does a Section 8 company get 12A and 80G automatically?
No. Income-tax exemptions are separate applications after incorporation. We can quote those if you need them.
Official reference: MCA. Always confirm the live rule on that portal.