MCA Data Shows 30% Rise in Section 8 Registrations

In a strong indicator of growing interest in the non-profit sector, the Ministry of Corporate Affairs (MCA) has reported a 30% year-on-year increase in the registration of Section 8 companies across India. The surge reflects a rising trend among individuals, institutions, and corporate-backed initiatives opting for formal non-profit structures to advance social, educational, environmental, and developmental goals under the Companies Act, 2013.

According to the latest data released by the MCA, the growth is most prominent in sectors such as education, healthcare, women empowerment, and climate action. States like Maharashtra, Tamil Nadu, Karnataka, and Delhi have emerged as top contributors, accounting for over 50% of the new incorporations. The increase is being attributed to a combination of policy incentives, simplified digital registration via SPICe+, and enhanced public awareness of the legal and financial benefits that Section 8 status offers.

Officials noted that recent reforms—such as waivers for women-led entities, mandatory CSR registration numbers, and fee relaxations for small non-profits—have made it easier and more attractive for mission-driven entrepreneurs to formalize their ventures. The push for transparency through digital audits, beneficiary tracking, and project-wise disclosures has also helped boost public trust in the Section 8 framework.

Industry observers and social enterprise leaders view this spike as a healthy sign of formalization and scale in India’s evolving non-profit landscape. With more organizations seeking to access CSR funds, tax exemptions, and foreign contributions, Section 8 companies continue to serve as a preferred legal model for those committed to creating structured, accountable, and impactful social change.

The government is expected to further support this momentum with outreach programs, capacity-building initiatives, and upgraded compliance tools tailored for the expanding ecosystem of charitable enterprises.