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Section-8 Company Registration in India

The Section-8 Company is one of the types of companies in India, the main objective of this company is not for profit. It's objectives are to promote fields of arts, commerce, science, researh, education, sports, charity, social welfare, religion, environmental protection etc.,. How do Section-8 companies provide these services without revenue? Yes they provide these serices by collecting donations from public, corporates. These companies will get grants from governments. The nature of Section-8 companies are similar to Trust or Society but will have lot of credibility as it is registered under central government and a statutory auditor gives the audit report at the end of the accounting period. It can appeal the public for a great cause and get the donations easily. The donors can verify the financial reports through www.mca.gov.in, the Ministry of Corporate Affairs, government of India web portal. Section-8 Company can be registered as both Private or Public.

Section-8 Company registration is now simplified as you can directly apply for registration without getting license. The registrar will issue license along with the certificate of incorporation. Section-8 Company Registration is regulated by the Central Registration Center (CRC), Manesar, Haryana on behalf of each state jurisdictional Registrar of Companies, Ministry of Corporate Affairs, Government of India. The governing law for the companies is Companies Act, 2013.

The Government of India had announced on 26th January, 2018 that there is zero incorporation fee for the Companies registered with an Authorized Share Capital up to of Rs. 1,000,000/- (Rupees Ten Lakh), subsequently, it had been increased to Rs. 15 lakh. The Stamp Duty on MOA and AOA is not required to pay in most of the states in India. The remaining fee such as Name Availability, Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) is applicable as usual.

Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company. The following have to be proved to the satisfaction of the Central Government that: (a) its objects includes promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object; (b) the company after incorporation intends to apply its profits, if any, or other income in promoting such objects only; and (c) the company intends to prohibit the payment of any dividend to its members.

The Section-8 Company registration in India is entirely online. If you’re looking to make your company registered, then CompaniesHouse is the team for you. Register your company online with us today and you’ll be on your way to operating a registered company under 10 working days.

Section 8 Company ~ Trust ~ Society

In India, there are mainly the three types of non-profit organizations i.e. Section 8 Companies (earlier Section 25): Societies registered under section 20 of the Societies Registration Act 1860. Trusts formed under Indian Trusts Act 1882. The following are the main differences between Section-8 Company, Trust and Society.

Particulars Section-8 Company Trust Society
Governing Law Companies Act, 2013 Indian Trusts Act, 1982 Societies Registration Act, 1860
Rigistering Authority MCA Sub-Registrar Society Registrar
Minimum Members Two Tow members 7 Members
Cost of Formation High Medium Low
Compliance High Low Medium
Grants and Subsidies High Medium Medium
FCRA Preference High Low Low
Section 80G & 12 A Allowed Allowed Allowed
Stamp Duty To be paid To be paid Not required
Transperency High Less Less

Minimum Requirements for Section-8 Company Registration

Directors Min of 2 Max of 15
Shareholders Min of 2 Max of Unlimited
Authorised Share Capital Min of Rs.2 Max unlimited
Paidup Share Capital Min of Rs.2 Max unlimited
  • Two directors and two shareholders are rquired. The directors and shareholders may be the same persons. They should be majors. The director must be an Individual whereas the shareholder may be the body corporate. One of the directors must be resident Indian.
  • Authorised Share Capital is the amount up to which, you can invest in the company as share capital.
  • Paidup Share Capital is the amount up to which, you can deposit in the Company's Bank Account towards Share Capital.

Documents Required for Section-8 Company Registration

  • A

    Directors Documents

    1. Directors PAN
    2. Directors ID Proofs
      Aadhaar Card or Voter ID or Passport or Driver's License
    3. Directors Address Proofs:
      Latest one month Savings Bank statement or
      Latest Telephone Bill on his own name or
      Latest Moblie Bill on his name or
      Latest Power Bill on his own name.
    4. Directors latest passport size photograph
    5. Directors Email ids
    6. Directors Mobile Numbers linked with their Aadhar
    7. Incase of Foreign direcrtors, International Passport is mandatory
  • B

    Company Documents

    1. Registered Office Address Proof: Latest Power Bill
    2. No-objection letter from the Landlord.
    3. Rental Agreement from the landlord if the premises are rented.
    4. Company email id.

How to Register a Section 8 Company - Section 8 Company Registration Process

Now the Section 8 Company can be registered simply in 3 Steps. Below is the 3 step Section 8 Company Registration process.
  • 1

    Digital Signature Certificates

    Through eMudhra - One Hour Job

    Section-8 Company registratoin in India is entirely online. To register a Section-8 Company, the Shareholders of the Company have to sign documents digitally using Class-III Digital Signature Certificate (DSC). We will apply Class-III DSCs through eMudhra or other Digital Signature Certificate provider Online. We will attest and submit your documents with eMudhra or other Digital Signature Certificate provider and get your DSCs approved and download the same for signing purpose. Apart from Shareholders, a practicing professional such as Company Secretary or Chartered Accountant has to mandatorily digitally sign and attest the documents to get your Company Incorporated. We also get this done with our associated CA/CS professionals.

  • 2

    Incorporation

    Through MCA Portal - 5 to 7 Days

    Once the DSCs are approved, we will then draft the By-Laws and Articles of the Company and prepare the Section-8 Company Incorporation documents (ie. eSpice+ PartB, eSpice MOA, eSpice AOA, Form DIR-2, Form INC-9, eAGILE Form, Directors KYC documents, NOC and other declarations as may be required) and once you give confirmation from your end to upload with the MCA, we will do that by paying requisite challan amount online.

  • 3

    Certificate of Registration

    Through eMail - 1 Day

    Once we upload and pay the incorporation challan amount to MCA, the Registrar of Companies will go through your application and after due scrutiny, approves the same and issues you the Certificate of Incorporation online through your registered email address.

What All You Get

Certificate & License under Section 8 Memorandum of Association (MOA)
Articles of Association (AOA) Company PAN & TAN
Digital Signature Certificates (DSC) Director Identification Numbers (DIN)
GST Registration (GSTIN) MSME Registration (UDYAM)
PF Registration ESI Registration
PT Registration* Shops & Establishment Registration**
GST Software Share Certificates

* PT Registration is available in the states of Maharashtra, Karnataka & West Bengal only

** Shops & Establishment Registration is available in the state of Delhi only

Bank Account, Other Licenses & Compliance:

Company Bank Account Opening:

Now, the Ministry of Corporate Affairs (MCA) is giving automatic Company Bank Account along with the Certificate of Incorporation in any one of the following banks (ie. Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, State Bank of India, Union Bank of India, IndusInd Bank or Axis Bank). You have to select any one of the bank as listed and this is mandatory. If you do not wish to open bank accounts in eigther of these banks, you can open your bank account separately once you get the Certificate of Registration and other incorporation documents such as MOA, AOA and Company PAN. No amount is required to get the bank account opened in these banks. Once you get all documents, you can then submit KYC with the bank and deposit the Sharecapital amount.

Company PAN & TAN:

The Company PAN & TAN will also be generated simultaneously along with the Certificate of Incorporation. You are not required to apply for it separately. You will only get password protected ePAN & eTAN at the time of Company Incorporation and if you want physcal PAN & TAN, again you need to separately apply for it by paying the applicatiton fee at PAN application center or online. This ePAN & eTAN are sufficient to get other supporing licenses and run your business. The password to open ePAN is the date of registration and the PIN code of the Company Registered office for eTAN.

GST Registration:

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees*:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees**.

* This limit is increased to Rs. 40 Lakhs w.e.f 1st April 2019 for all states except the State of Telangana. Special category states ie. Jammu and Kashmir, Ladakh and Assam also opted Rs.40 lakhs limit.

** This limit is increased to Rs. 20 Lakhs w.e.f 1st April 2019 for Special Category States.

We help registering your business under GST by making application online subsequent to the business formation. This GST Registration in India is online and subject to approval with the GST Officer. Normally, with in 4 to 5 days, you will get your GSTIN and some times it may be delayed due to various reasons. If the company is registered under Section 12AA of the Income Tax Act, 1961 and the services provided by the Company are for charitable cause, then GST is exempted.

License under Section-80G & 12A:

Section 80G of the Income Tax Act allows donations made to specified relief funds and charitable institutions as a deduction from gross total income. Section 12A specifies the exemption from paying income tax on surplus income of a specified relief fund or charitable institution.

A charitable institution can apply for exemption under section 12A of the Income Tax Act in Form 10A and also for permission under Section 80G. It is beneficial for both donors and charitable institution if they have both permissions from Income Tax department because the doner can claim deduction from his gross total income and the charitable institution can claim exemption from paying income tax on surplus income.

NGO DARPAN:

DARPAN id is required to get Government Grants. NITI Aayog issues this identification number.

FCRA Registration:

If your company wishes to receive contributions, donations from abroad, you need to get license under Foreign Contribution Regulation Act, 2010 (FCRA).

CSR Certificate:

If your company wishes to raise CSR (Corporate Social Resoposibility) Funds, CSR Certificate is required and it is issued by the Ministry of Corporate Affairs (MCA).

Compliance:

Once your register your Company, you need to file certatain periodic documents with the Registrar of Companies, GST department, Income Tax Department and Other Statutory Department online by paying requisite fee. Apart from filing documents, you need to maintain certain records, registers and maintain books of accounts. You need to prepare the Company financials such as Profit & Loss Account, Balance Sheet, Shedules to Accounts, Notes to Accounts, Directors Report etc. You also need to prepare resolutions and minutes of meetings of the board of directors and members of the Company. Our team of experts will assist you in getting all these compliances done at an affordable cost.

Benefits of a Section-8 Company Registration:

Limited Liability:

The liability of the members of the Company is limited. The Directors or Shareholders are not personally liable for the debts of the Company. For example, when Company is in default of repayment of debt or loan, there is a protection to the personal assets of the Directors or Shareholders. They can recover the loan amount only by selling the assets of the Company.

Donations & Grants:

Section-8 Company can raise donations from public easily. This type of NGOs can get grants from Government easily. The doners will get benefited under section 80G of the Income Tax while filing their Income Tax Return and the company can claim Income Tax benefits under section 12A of the Income Tax Act, 1961 if it gets licenses under Section 80G and 12A.

Stamp Duty:

No stamp duty is payable at the time of incorporation of Section-8 Companies in most of the Indian states except Odisha, Andhra Pradesh, Telangana, Meghalaya, Manipur, Nagaland, Tripura, Arunachal Pradesh, Mizoram, Kerala, Lakshadweep, Madhya Pradesh and Rajasthan. The cost of formation of this Company is cheaper when compare to incorporation of companies for profit.

Director Dual Role:

The Director of the Company can be the employee of the Company. He can give his own premises on rent/lease to Company and Collect rent from it, he can give loan to the Company and can take loan from Company, he can supply goods or services to the Company and get consideration for that.

Separate Entity:

The members of the Company may come and may go but Company may not go that means the members are different and the Company is different. Company can own assets on it own name and can sell. It can sue and can be sued in a court of law.

Liense under FCRA:

The Section-8 company can get license under Foreign Contribution Regulation Act, 2010 easily and get contributions, donations and grants from aborad easily. Getting license under Foreign Contribution Regulation Act is easier to the Section-8 Companies when cmpare to other NGOs.

CompaniesHouse - The MCA:

As an Official Company Registration Agent, we have built strong ties with the Ministry of Corporate Affairs, Govt of India since our own formation. Since we began, our goal has been to provide a seamless incorporation process that is quick and simple to use. Today, our company registration system is one of the most effective and efficient in India. In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered. We also keep our company formation pricing competitive, while always exploring innovative ways to provide value to our customers. We are pleased to be one of the most affordable ways to start a company in India.

We have the expertise to advise which is the correct corporate structure they need to put in place. Most customers come to us for help registering a company limited by shares. The limited company structure is popular as it allows profits to be distributed amongst the shareholders while at the same time protecting them through the limited liability aspect. Our team has well over 20-years of combined expertise forming companies and providing corporate and secretarial services that help thousands of our clients grow their businesses each year.

We are incredibly passionate about the quality of our service, and we are incredibly proud of our customer feedback, as shown by our excellent reviews and ratings. Time and time again, we are selected for the value and expertise that our team is known for. We have helped shape the industry by providing innovative business services and bundled packages that have evolved alongside the needs of our customers.

Our clients have access to free support from an expert team. We are always on standby to help. If you need assistance at any point before, during, and after the registration of your company, you will be able to reach us by telephone or email.

Why CompaniesHouse?

No Hidden Charges:

We believe in clear and transparent pricing. The price advertised is the price you pay. There are no additional costs to register your business.

Speedy Service:

In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered.

20+ Years of Exp:

We are experts in our field, our team has over 20 years of experience. Take the hassle out of setting up your business, rest assured that you are backed with the support you need to succeed.

Trusted Service:

Today our clients expect outstanding service. That's why we are so proud that 99% of our clients rate us "Great" and "Excellent" on Google.

Simplicity:

The whole process, from ordering to using your company registration license, is made as simple and easy as possible to help you build your business.

Privacy & Security:

Customer privacy and security is paramount. We ensure your payment, company and personal information is protected at the highest level.

What Client Says?

You are truly experienced in Company Registrations. Keep it up!

Ram Kumar Chilukuri Director, Anewa Engineering Pvt Ltd

Thanks for your continuous support. God bless you!

Nrupesh CFO, Blujay Solutions Private Limited

Thank you CompaniesHouse for saving in Income Tax!

Avtar Singh Managing Partner, Chetak Transporters

We are surprised to get our Company registered in one day. Thanks.

Mohammed Fasiuddin Director, Avidus Engineering Pvt Ltd

Thank you for the initial discussion as we choose best business format!

Lakshmi Keerthi Reddy Director, Lavanar Sea Food Farming Private Limited

Thank you CompaniesHouse for reminding on timely statutory compliance!

Rambabu Director, Cybervillage Solutions Pvt ltd

Let's Clear Your Doubts

What is DIN?

DIN stands for Director Identification Number. Every Director of the company will get this unique Director Identification Number subsequent upon the Company Incorporation. With this DIN, he/she can register any number of companies.

A DIN holder has to file his KYC with MCA every year on or before 30th day of September otherwise a penalty of Rs. 5000/- will be imposed.

What is DSC?

DSC stands for Digital Signature Certificate. Class-III Digital Signature Certificate is required for each Shareholder while registering his/her company.

There are different companies who issue Class-III DSCs. These companies are called DSC Certifying Authorities. We have associated with eMudhra Tamil Nadu. eMudhra is one of the largest Digital Signature Certifying Authority in India.

What is Authorised Share Capital?

An authorized share capital is a share capital amount upto which the shareholders can invest in equity of the company.infact, this the permission limit to invest amount into Equity Sharecapital.

What is Paidup Sharecapital?

Paid up share capital is an amount, which is deposited by the shareholders of the compnay in company's bank account towards share capital.

Now the company can be registed with a minimum amount of share capital of Rs. 2/- ie. Rs.1/- investment by each shareholder.

What is CIN?

A CIN is a company identificaton number, which is generated by the Ministry of Corporate Affairs while generating the Certificate of Incorporation.

We can treat it as the company registration number.

What is the duration for Company Registration?

If we apply direct incorporation without applying for Certificate of Name Availability, it may take 3 to 5 working days. Some times, it may be incorporated even in one day.

But it is advisable to apply first company name and then incorporation and in this case it may take 10 to 15 days.

What is the Government fee for Company Registration?

For one lakh authorised share capital company, the total government fee including Digital Signature Certificates would be approximately Rs. 4,000/-.

CompaniesHouse is authorised by the Ministry of Corporate Affairs to provide company registration service throughout India at an affordable cost of Rs. 1,999/-.

Can I start company from my home address?

Yes, you can start a Company from your home address too.

Can I register my Company on my own?

No, you can not register Company on your own as Professionals like Company Secretary/Chartered Accountant has to sign digitally along with a Director on the application forms, then only your Companay will be registered.

What is minimum amount of Sharecapital with wich I can start my Company?

Now. For a two person private limited company Rs. 2/- is the minimum sharecapital and for one person private limited company Rs. 1 will be the minimum amount of sharecapital is required.

What are the minimum number of Directors required to register a Section-8 Company?

Minimum of two directors are required to register a Section-8 Company.

Who can apply for registration of a Section 8 Company?

Any person or an association of persons intending to register a limited liability company for objects specified below can opt to apply for registration of Section 8 Company.

The following have to be proved to the satisfaction of the Central Government that:
(a) its objects includes promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object;.
(b) the company after incorporation intends to apply its profits, if any, or other income in promoting such objects only; and
(c) the company intends to prohibit the payment of any dividend to its members.

Is it mandatory that the name of section 8 Company shall include the words like – Foundation, forum, association, federation, chamber, confederation, Council, electoral trust etc.?

Yes.

Can a One Person Company (OPC) be incorporated as or convert into a Section 8 Company?

No. Rule 3 of the Companies (Incorporation) Rules, 2014 prohibits a one person company to be incorporated as section 8 company or to convert into a Section 8 Company.

Can a one person company become a member of Section 8 Company?

No, Rule 3(6) of the Companies (Incorporation) Rules, 2014 prohibits one person company to invest in securities of any body corporate.

Can a partnership firm or an Limited Liability Partnership become a member of Section 8 Company?

Yes, under the Companies Act, 2013, a Partnership firm or an LLP can become the member of Section 8 Company. The provisions of respective Acts need to be complied with by the partnership firm or LLP as the case may be.

Can a Trust become a member of Section 8 Company?

Yes, trust can become a member of the Section-8 Company.

Whether a Co-operative society can become subscriber/ member of a Section 8 Company?

A Co-operative society can be regarded as Person and thus capable of becoming subscriber of a company including Section 8 Company.

Can Section 8 Companies receive contributions from overseas or non-residents?

There are special requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 before a Section 8 Company can receive any contributions or donations from overseas/outside India from non-residents. The provisions of the said Act are in addition to the provisions under the Companies Act.