Section 8 Company Registration


Register your Section 8 Company with speed, ease and Value Savings

-We will draft and file your application to MCA

-You just need to fill a simple 10-minute Questionnaire

-Simplifying your business journey

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What is a Section 8 Company?

A Section 8 Company is named after the Section 8 of the Companies Act, 2013. The section applies to the incorporation of an association ‘for promoting commerce, religion, art & culture, education, charity, research, science, sports, social welfare, environmental protection or any other charitable objective; , provided that any possible earned profits will only be applied for promoting the objectives of the association and no dividend is to paid to its members.

A Section – 8 Company is similar to a Trust or a Society. The Section 8 of the Companies Act is very similar to that of Section 25 of the Old Companies Act. It is registered under the Central Government’s Ministry of Corporate Affairs through the Section 8 of the Companies Act, 2013 for not-for-profit purposes.

The government provides a license to all the Section 8 Companies along with informing them about the restrictions and conditions. If the association fails to fulfill the prescribed conditions then the Central Government might order then to shut it. In cases of fraudulent objectives, legal actions are taken against all the officers and members of the company.

Advantages of Section 8 Company registration

  • Numerous Tax exemptions are given to the Section 8 Companies. The donors who are donating to a Section 8 Companies are eligible to claim the Tax Exemption against the donation they’ve made to the association.
  • The incorporation procedure of a Section 8 Company does not state any minimum capital requirement unlike other such entities such as public limited and alike. The capital structure can be altered at any stage as per the growth requirements of the company.
  • A Section 8 Company is exempted from the stamp duty payment that is otherwise applicable for registration of other structures such as private limited or a public limited company.
  • A Section 8 Company has its separate legal identity analogous to other company structures and has its own legal standing apart from its members. It has a perpetual existence.
  • Compared to any other Non Profit organization structure such as Trust or a Society, a Section 8 Company has more credibility owning to the license given by the central government. Alongside a Section 8 Company has to follow more stringent regulations such as no change can be undertaken in the MOA and AOA at any stage or situation. There is more reliable image of a Section 8 Company due to such strict compliances in comparison to other legal structures.
  • Unlike the name requirement in other company structure, the Section 8 Company does not require a use of a suffix next to its legal name.

Our Offerings

At Company Registration our experts register your Section 8 Company in your city of preference and also help you in all matters of company registration. Starting from Selecting a Name for your association, searching availability of the name you have chosen, designing your logo, providing trademark registration of your brand name and free consultancy on any matter related to your company registration. Company Registration is just the first step of your journey with us. We also provide Bookkeeping, Taxation, Annual Filing, ROC Compliances (such as minutes, notices etc.) services. We are a one stop shop for all your business related needs.

Minimum Requirements to start a section 8 company

  • Minimum of 2 Shareholders
  • Minimum of 2 Directors ( Both Shareholders and DIrectors can be the same people )
  • At least one Director should be an Indian Resident
  • No requirement of the Minimum Capital
  • PAN issued by the Income Tax Department is a mandatory requirement for Indian Nationals
  • Passport is a mandatory requirement for identity proof in case of Foreign Nationals
  • Any one additional Identity Proof – Voter ID/ Aadhar Card/ Driving License/ Passport is required.
  • Any one Residential Proof i.e. any of the utility bill – Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill
  • Proof of the Registered Office Address:
    In case of a rented property, rent Agreement along with the latest rent receipt, the copy of latest utility bill in the name of the landlord and a no objection certificate from the premises’ owner is a compulsory requirement.
    In case the premises is owned by the Director or the Promoter then any documents that proves the owners’ establishment such as a Sale Deed/House Tax Receipt and a No Objection Certificate.

Steps for Section 8 Company Registration

1. Applying for Digital Signature of Director (DSC)

DSC is an equivalent of the physical or paper certificates in their digital format. The process of incorporation begins with applying for the DSC because the application for the Section 8 Company is filed online with the DSC of the director only. In order to issue a DSC, a signed application form with a photo, ID and Address proof of the director is submitted.

2. Applying for Direction Identification Number (DIN)

Director Identification Number is a permanent and a unique identification number issued to the Director of a company or a designated partner of the LLP. by the Registrar of Companies. In accordance with the New Companies Act, 2013 – no person can hold an office of the director without having a DIN. An application to the ROC is made with a photo, attested ID and and address proof duly signed by a practicing professional, a CA/CS/CMA for the allotment of DIN.

3. Name Approval of the Section 8 Company

Names can be submitted for approval through Name Approval form or together with SPICe (INC-32) at the time of incorporation. If Name is not approved in first chance then you can file for resubmission or file SPICe form again. This whole process takes 2-3 days. Please note that DSC and DIN shall not berequired for filling of Name Approval form for reservation of name. Only MCA Account is mandatory.

4. Issue of the Central Government License

An application is made to the Regional Director of the Ministry of Corporate Affairs accompanied with the statement of the proposed objective of the to be incorporated company and a complete projection of the profits and losses of the succeeding three years i.e., the statement of assets and the liabilities. The Regional Directors are vested with unrestricted powers to approve the license application.

5. Drafting of the MoA and AoA of the Company

The Memorandum of Association (MoA) of the Section 8 Company includes all the information about the company such as the Name of the Company, state of company incorporation, details of the authorized capital and declaration of the company about being it a limited company. The Article of Association (AoA) accommodates all the internal rules of the organization. It is mandatory for the promoters to adopt and sign the MoA and AoA before it could be filed with the ROC.

6. Company Incorporation

Once your application is filed you will receive an ARN number. The Incorporation certificate is received within 15-20 days .It is a proof that company has been created. The COI also includes your CIN (Company Identification number).

7. Opening of a Company Bank Account

It is mandatory for a company to have a bank account in order to operate its business. Our expert executives are here to help you in getting the company PAN, TAN and TDS payment compliance to help you open the company bank account.

Factors to be Considered in Section 8 Company Name Selection

The Name of the Section 8 Company should comply with the following:

  • Short and Simple Name
  • A Meaning and Unique Name
  • It shouldn’t violate any law
  • It shouldn’t use the term “British India”

Procedure for Section 8 Company Registration

Frequently Asked Questions

1. What is a Section 8 Company?
Any organization that operates for promotion of art, science, education, sports, social welfare, research, charity, religion, environmental protection or any other such objective. It is easy to manage a Section 8 Company as compared to a Trust or a Society.

2.What are the key features of a Section 8 Company?
The following are the characteristics of a Non-Profit-Organization Section 8 Company:

  • Objective – It operates for common welfare of population in regard with the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, environmental protection or any such other object.
  • Not for Profit Earning – The objective is not to earn profit. If any profit is earned during course of the company’s operation then it is not to be shared among the owners or its members but rather be utilised for attaining the objectives of the association.
  • Utilisation of funds and earnings – The profits or other generated income is used towards promoting of specific objects of NGO. Further there is restriction on declaration of profits as dividend to members.
3. What are the basic requirements to start a Section 8 Company?
  • Minimum of 2 Shareholders
  • Minimum of 2 Directors ( Both Shareholders and DIrectors can be the same people )
  • At least one Director should be an Indian Resident
  • No requirement of the Minimum Capital
  • PAN issued by the Income Tax Department is a mandatory requirement for Indian Nationals
  • Passport is a mandatory requirement for identity proof in case of Foreign Nationals
  • Any one additional Identity Proof – Voter ID/ Aadhar Card/ Driving License/ Passport is required.
  • Any one Residential Proof i.e. any of the utility bill – Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill
  • Proof of the Registered Office Address:
    In case of a rented property, rent Agreement along with the latest rent receipt, the copy of latest utility bill in the name of the landlord and a no objection certificate from the premises’ owner is a compulsory requirement.
    In case the premises is owned by the Director or the Promoter then any documents that proves the owners’ establishment such as a Sale Deed/House Tax Receipt and a No Objection Certificate.
4. What are the additional requirements for section 8 company registration?
Multiple forms need to be filed to apply for license.
The most important form is eForm INC 12 under section 8 of the Companies Act, 2013. This application shall be accompanied with:

  • Memorandum of Association (MoA) & Articles of Association (AoA) of the proposed company.
  • A declaration confirming the application by a practicing Company Secretary on the Non – Judicial stamp paper of the prescribed value.
  • List of names, descriptions, addresses & occupation of the Promoters and the Board Members of the proposed company.
  • A statement showing details of all the assets and liabilities of the company as on date with the application.
  • An estimate of future annual income and expenditure of the proposed company, specifying the source of income and object of expenditure.
  • A statement giving the brief description of work already done by the association. (Optional)
  • A statement needs to be submitted specifying briefly the grounds on which the application is made. In other words a brief statement specifying the objective of the proposed company.
  • A declaration should be submitted by each person making an application in prescribed form on non – judicial stamp paper.
  • A Letter of Authority is required.
5. Is Digital Signature (DSC) mandatory to complete the registration formalities?
Digital Signature is the only secure and an authentic way to submit a document electronically. All the filings of e-forms on the MCA Portal are required to be filed with the use of DSC by the person authorised to sign the documents.

6. Is it necessary to have 2 directors for the registration of a Section 8 Company?
Yes, a minimum of two directors are mandatory for a Section 8 Company registration.
7. Who are eligible to become a member in the Section 8 Company?
Any individual/organization is eligible to become the member of Section 8 Company including foreigners and NRI’s.

8. How much time will the section 8 company registration take?
The entire incorporation process under section 8 of Companies Act 2013 gets completed on obtaining the license and issue of the incorporation certificate. The whole process can be closed in less than 15 days. The time taken depends on the relevant documents provided by the applicant and speed of approvals from government. To ensure a speedy registration process, it is advised to pick up a unique name for the proposed company and make sure that all the required documents are available before starting the process of registration.
9. Is there a need for any other special registration?
In addition to registration as a Section 8 Company, a non-profit engaged in certain activities may require some special licenses or permissions. Some of these are listed below:

  • A place of work in a restricted area like a tribal area or a border area requires a special permit, the Inner Line Permit, issued either by the Ministry of Home Affairs or by the relevant local authority i.e., the District Magistrate.
  • To open an office and employ people, the NGO should register itself under the Shop and Establishment Act.
  • To employ foreign staff, an Indian NGO needs to be register itself as a trust/society/company along with having an FCRA registration and a No-Objection-Certificate. The intended employee also needs a work visa.
  • A foreign NGO willing to set up an office in India and wanting staff from abroad needs to be registered itself as a trust/society/company. The NGO will also need to take the permission from the Reserve Bank of India and a No-Objection-Certificate from the Ministry of External Affairs.

10. What is the government fee applicable for Section 8 company (NGO) registration?

Below mentioned are the charges applicable for DIN, DSC and other government forms required in the process of incorporation of a Section 8 Company:

  • DIN-Director Identification Number (2 Nos): Rs.1000
  • DSC-Director Identification Number(2 Nos): Rs.2000
  • RUN Form (Name Approval): Rs.1000
  • INC 12 Form (Registration under section 8): Rs. 2000
  • AoA-Article of Association: Rs.1000 (up to Rs.10 lakh of authorized capital)
  • MoA-Memorandum of Association: Rs.5000