Section 8 companies

Start with the objects and licence

A Section 8 company’s constitutional documents and licence conditions matter to how it operates. Review proposed activities and changes against those records rather than treating nonprofit status as permission for any project.

Separate registrations and benefits

Company status does not automatically establish income-tax exemption, donor deduction eligibility or permission to receive foreign contribution. Each applicable approval needs its own evidence, conditions and continuing compliance review.

The government’s FCRA explanation describes registration or prior permission for eligible associations receiving foreign contribution. Assess the proposed receipt and the organisation’s actual permission before accepting funds; incorporation or a founding document does not settle that question.

Maintain project and governance evidence

• Board approvals and records of significant decisions.
• Grant terms and project-wise receipts and expenditure.
• Asset, payroll and vendor records supporting utilisation.
• Corporate, tax and other registration acknowledgements.

A funding example

A restricted grant for one programme should remain traceable to that programme’s expenditure. A consolidated bank balance alone does not demonstrate that donor conditions were met.

Prepare the annual workplan

Bring the licence, objects, grant agreements, accounts and approval history. We can coordinate books and filing records; specialist tax, foreign-contribution and governance questions are separately assessed. No blanket exemption is assumed.

Choose support for formation or ongoing work

For a proposed organisation, Section 8 company incorporation starts with the intended objects, activities and governance arrangements. Explain the planned programmes and funding sources so the formation brief describes the organisation you intend to operate.

For an existing company, connect bookkeeping and monthly close with annual company compliance. Agree which team prepares project schedules, who confirms fund restrictions and how the final accounts reach the filing workstream.

Make project reporting traceable

Keep a grant register showing the agreement, programme, reporting period and agreed use of funds. Link receipts and expenditure to the relevant project schedule, with separate notes for shared costs and the basis used to allocate them. Retain any donor correspondence that changes the agreed scope.

For example, equipment bought for two programmes should have a documented allocation in the working records. Identify the invoice, asset record and explanation supplied by the programme team so the financial report can be traced back to evidence rather than an unexplained split.