A Section 8 company is a company formed to promote objects such as commerce, art, science, sports, education, research, social welfare, religion, charity or protection of the environment. Profits must be applied to these objects, and no dividend can be paid to members.
The licence under Section 8 is granted by the Central Government along with incorporation through SPICe+. Like any company, it files annual returns with the ROC and has its accounts audited. It can apply for registration under Section 12A and approval under Section 80G of the Income-tax Act.
Key points
- No dividends; income applied only to the stated objects
- No minimum capital requirement
- Name may use words such as Foundation, Forum or Association
- Annual ROC filings and statutory audit apply
- Tax exemption needs separate registration under the Income-tax Act
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
