Cardiff Services

Section 8 Company

Section 8 Company – Overview

A Section 8 Company is a special form of company registered under the Companies Act, 2013 with the objective of promoting charitable and not-for-profit activities such as education, social welfare, healthcare, environment, arts, research, or sports. Unlike regular companies, the profits and income of a Section 8 Company must be applied solely towards its objectives, and no dividend can be distributed to members.

 

Despite being a non-profit, a Section 8 Company enjoys all the benefits of a corporate structure — separate legal identity, limited liability, perpetual succession, structured governance, and national recognition. It is considered more credible than a Trust or Society, especially for attracting donations, CSR funding, and international grants.

 

At Cardiff Services, we assist NGOs, charitable institutions, and social entrepreneurs with end-to-end support for incorporating and managing a Section 8 Company — from drafting the Memorandum & Articles of Association, filing with the Registrar of Companies (ROC), securing approvals, and obtaining tax exemptions (12A, 80G, FCRA) to ensuring ongoing compliance.

Key Features of a Section 8 Company

  • Charitable Objectives – Formed for promoting education, healthcare, social welfare, environment, arts, research, sports, or similar charitable purposes.

  • No Profit Distribution – Profits and income must be applied solely towards the company’s objectives; no dividends are paid to members.

  • Separate Legal Entity – Recognised as distinct from its members, ensuring business continuity and credibility.

  • Limited Liability – Members’ liability is limited to their shareholding or contribution.

  • Perpetual Succession – The company continues to exist regardless of changes in directors or members.

  • Corporate Governance – Governed under the Companies Act, 2013, ensuring structured compliance and transparency.

  • Tax Benefits – Eligible to apply for 12A, 80G, and FCRA registrations for tax exemptions and foreign contributions.

  • Better Credibility – Preferred by corporates, government bodies, and international agencies for CSR funding and grants.

Documents Required for Section 8 Company Incorporation

  1. Identity & Address Proof of Directors / Members

    • PAN Card (mandatory)

    • Aadhaar Card / Passport / Voter ID / Driving License

    • Latest utility bill or bank statement (not older than 2 months)

    • Passport-size photographs

  2. Registered Office Proof

    • Electricity/telephone bill of the office premises

    • Rent Agreement / Lease Deed, if the property is rented

    • No Objection Certificate (NOC) from the property owner

  3. Company Incorporation Documents

    • Draft Memorandum of Association (MOA) specifying charitable objects

    • Draft Articles of Association (AOA)

    • Declarations by directors in Form INC-15 (stating profits will not be distributed)

    • Consent to act as directors in Form DIR-2

    • DIR-8 declaration of non-disqualification of directors

  4. Financial & Supporting Documents

    • Projected income and expenditure statement for the next 3 years

    • Brief note describing the proposed charitable activities of the company

  5. Other Requirements

    • Digital Signature Certificates (DSC) for all proposed directors

    • Director Identification Numbers (DIN) for proposed directors (or application for DIN)

    • List of promoters and members of the company

Step-by-Step Procedure for Section 8 Company Incorporation

  1. Digital Signature & DIN

    • Obtain Digital Signature Certificates (DSC) for all proposed directors.

    • Apply for or use existing Director Identification Numbers (DINs).

  2. Name Reservation

    • Apply for name approval through the RUN (Reserve Unique Name) or SPICe+ service on the MCA portal.

    • Ensure the name reflects the charitable nature of the company.

  3. Drafting Constitutional Documents

    • Draft Memorandum of Association (MOA) with clearly defined charitable objects.

    • Draft Articles of Association (AOA) for internal governance.

    • Prepare declarations in Form INC-15 confirming non-profit character.

  4. Application to Regional Director (RD)

    • File Form INC-12 with RD along with:

      • Draft MOA & AOA

      • Projected income and expenditure for 3 years

      • Brief note on proposed activities

      • Declarations by directors and promoters

  5. Approval of License

    • RD scrutinises documents and, once satisfied, issues a License under Section 8 of the Companies Act, 2013.

  6. Company Incorporation Filing

    • File SPICe+ (INC-32) along with e-MOA (INC-33) and e-AOA (INC-34) to the ROC.

    • Attach the RD License and all supporting documents.

  7. Certificate of Incorporation

    • ROC issues a Certificate of Incorporation, confirming registration as a Section 8 Company.

    • The company now has a distinct legal identity.

  8. Post-Incorporation Compliance

    • Apply for PAN and TAN.

    • Open a bank account in the name of the Section 8 Company.

    • Apply for 12A, 80G, and if applicable, FCRA registration for tax exemptions and foreign funding eligibility.

Frequently Asked Questions

A company name search ensures that your chosen business name is unique, legally compliant, and not already registered with Companies House UK. It helps you avoid legal disputes, trademark issues, and confusion in the Cardiff business market.

If your desired name is already registered, you’ll need to choose a different name or modify it. Using a taken name could result in rejection by Companies House or potential legal issues. Our experts can help you brainstorm alternative names that are compliant and market-ready.

It’s not advisable to use a name that’s too similar to another company, especially within the same industry. Similar names can confuse customers and risk trademark disputes. A company name search helps you identify these risks early.

For a company name search in Cardiff, you may need:

  • Proposed company name

  • Business entity type (Ltd, LLP, Partnership, etc.)

  • Jurisdiction (Cardiff / UK)

  • Owner or shareholder details (if applicable)

  • Business description

A “high probability” result means your proposed company name is likely to be available, but further checks are recommended. This is why our detailed Cardiff Company Name Search Report includes both identical and similar names for clarity.

Certain words are restricted under UK law (e.g., “bank,” “insurance,” “government”). If you want to use them, you’ll need special approval from regulatory bodies. We guide you through this process if your Cardiff business requires such terms