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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

Overview

A corporate structure for mission-driven work

A Section 8 Company serves not-for-profit goals and can suit charitable, educational, social, cultural, environmental, religious, scientific, research, or community welfare purposes.

It gives mission-driven work a corporate structure. Social-impact founders, NGOs, foundations, educational initiatives, charitable projects, and organisations seeking formal governance and institutional standing often consider it.

Educational and research

Charitable and community welfare

Social and environmental

Audience

Who is this for?

Social-impact founders

Social-impact founders, non-governmental organisations, and foundations.

Initiatives

Educational, charitable, and community welfare initiatives.

Formal governance

Promoters who want formal governance and institutional credibility.

The process

What it involves

A Section 8 Company cannot distribute profits to its members. Its income and resources must go toward its stated objects. Promoters need clarity on purpose, activities, governance model, funding approach, board structure, and compliance responsibilities.

Eraqus helps promoters assess whether a Section 8 Company fits better than a trust or another not-for-profit form. Support includes documentation, object drafting inputs, registration coordination, governance planning, and guidance on related registrations (NGO Darpan, 12A, and 80G) where relevant.

01

Assess fit against a trust or other forms

02

Define objects and activities

03

Plan governance and board structure

04

Prepare documentation

05

Registration coordination

06

Related registrations where relevant

Before you begin

Key considerations

01

Clear objects, activities, and governance model.

02

No profit distribution among members.

03

Funding approach.

04

Board structure.

05

Related registrations (NGO Darpan, 12A, 80G) where relevant.

After incorporation

Ongoing compliance and the right choice

A Section 8 Company can give not-for-profit work a credible, structured base. This matters most when the organisation deals with donors, institutions, government bodies, or other formal stakeholders.

Objects
Governance
NGO Darpan
12A and 80G
FAQ

Frequently asked questions

Both serve not-for-profit purposes. A Section 8 Company provides a corporate governance framework. The better choice depends on the objective and the governance model the promoters prefer.

It may need NGO Darpan, 12A, 80G, and other compliances, depending on its activities and funding. We help map these to each situation.

Discuss your requirement with our team

Describe where your business stands and what you plan next. The team will help you understand the structure, documentation, and compliance that fit your situation.

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