Section 8 Company Formation

CSR 2.0 mandates 5% base spend for Section 8 companies above ₹100 Cr turnover. Impact measurement framework now required for MCA compliance.

Key Features:

• No dividend distribution
• License-based incorporation
• Tax exemption u/s 12AA/80G
• Separate legal entity status

2026 Compliance Updates:

• 33% independent directors mandatory
• Annual impact report filing
• FCRA registration grants increased 30%

Registration Process:

1. 2+ promoters (individuals/NGOs)
2. MOA/AOA with Section 8 objects
3. Form INC-12 + license application
4. Incorporation certificate (45 days)

Funding Opportunities:

• CSR 2.0 corpus allocation
• Government scheme priority
• International grant eligibility

Perfect for NGOs, social enterprises, educational trusts seeking corporate structure with tax benefits. Lower compliance than Section 25 companies.