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Section 8 Company

A credible corporate framework for not-for-profit and mission-driven work.

Not-for-profit

Mission-driven work

Corporate framework

Formal governance

Institutional standing

Credible with donors

Mission-led

Not-for-profit purpose

No profit

Distribution to members

Governed

Formal corporate framework

A Section 8 Company is used for not-for-profit objectives. It may be suitable for charitable, educational, social, cultural, environmental, religious, scientific, research, or community welfare purposes.

This structure provides a corporate framework for mission-driven work. It is often considered by social impact founders, NGOs, foundations, educational initiatives, charitable projects, and organisations that want formal governance and institutional credibility.

Who is this for?

Social impact founders, NGOs, and foundations

Educational, charitable, and community welfare initiatives

Promoters wanting formal governance and institutional credibility

What it involves

A Section 8 Company does not operate for profit distribution among members. Its income and resources are applied toward its stated objects. The promoters must therefore be clear about the purpose, activities, governance model, funding approach, board structure, and compliance responsibilities.

Eraqus Advisors helps promoters evaluate whether a Section 8 Company is suitable compared with a trust or other not-for-profit form, documentation, object drafting inputs, registration coordination, governance planning, and awareness of related registrations such as NGO Darpan, 12A, and 80G where relevant.

Key considerations

01

Clear objects, activities, and governance model

02

No profit distribution among members

03

Funding approach and board structure

04

Related registrations such as NGO Darpan, 12A, and 80G where relevant

Ongoing compliance

A Section 8 Company can provide a credible and structured platform for not-for-profit work, especially where the organisation intends to interact with donors, institutions, government bodies, or formal stakeholders.

Speak with our team

Discuss your requirement and we will help you understand the structure, documentation, and compliance that fit your situation.

FAQ

Frequently asked questions

Both serve not-for-profit purposes, but a Section 8 Company provides a corporate governance framework. The right choice depends on the objective and the governance model preferred by the promoters.

Depending on its activities and funding, it may also need NGO Darpan, 12A, 80G, and other compliances. We help map these to your situation.

Discuss your requirement with our team

Tell us where your business stands today and what you are planning next. We will help you understand the structure, documentation, and compliance that fit your situation.