Start a business
Section 8 company registration
A Section 8 company is a not-for-profit company registered under section 8 of the Companies Act, 2013 for charitable, educational, social welfare, research, sports, environmental or similar objects. It applies its income to its objects and cannot pay dividends to members. ISPEED prepares the licence application, MOA and AOA and files for incorporation, PAN and TAN.
What you get
- Digital signature certificates for two directors
- Director identification numbers for two directors
- Company name approval from MCA
- Section 8 licence application with objects statement and three year projections
- Memorandum and articles of association drafted and filed
- Certificate of incorporation and licence
- PAN and TAN of the company
For whom
- Charities, foundations and social enterprises
- Education, research, sports, arts and environment groups
- Organisations that want to receive CSR funds or grants
Time
15 to 30 working days
Professional fee
From Rs. 4,999
plus government fees. Plus GST at 18 percent on the fee.
What it costs all-in, in your state
Government fees and stamp duty change by state and by authorised capital. This adds them to the professional fee so you compare on the real number.
Estimate
Section 8 company in Maharashtra
Professional fee
Rs. 4,999
Section 8 company registration, professional fee
Fixed fee. GST is added below.
Rs. 4,999
Government fees (estimate)
Rs. 5,475
Digital signature certificate, 2 people
Rs. 1,500 per person. Class 3, valid for two years.
Rs. 3,000
Name reservation
SPICe+ Part A. Two proposed names per application.
Rs. 1,000
MCA filing fee (SPICe+, MOA, AOA)
MCA charges no filing fee for authorised capital up to Rs. 15 lakh.
Rs. 0
Stamp duty on the SPICe+ form
Rs. 100
Stamp duty on the memorandum (MOA)
Rs. 200
Stamp duty on the articles (AOA)
AOA at Rs. 1,000 for every Rs. 5 lakh of authorised capital. Minimum Rs. 1,000, maximum Rs. 50,00,000.
Rs. 1,000
PAN application
Applied with the incorporation form.
Rs. 110
TAN application
Rs. 65
GST
Rs. 900
GST at 18 percent on professional fees
No GST on government fees or stamp duty.
Rs. 900
All-in total
Rs. 11,374
Government fees are estimates and are confirmed before filing. The professional fee is fixed.
- Registered office in Maharashtra. Stamp duty follows that state's schedule on the filing date.
- Authorised capital of Rs. 1,00,000.
- 2 directors. DSC is priced per person and is valid for two years.
- SPICe+ allots DIN for up to 3 directors at no separate fee.
- Government fees are estimates and are confirmed before filing. The professional fee is fixed.
- Based on authorised capital and the number of people entered. Change either and the estimate updates.
- Valid for 30 days.
What it is
Section 8 of the Companies Act, 2013 replaced section 25 of the Companies Act, 1956. A Section 8 company is formed to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or any similar object. Its profits and income must be applied to these objects and cannot be distributed as dividend to members.
The registration procedure is different from a private limited company or an LLP. A licence under section 8 must be obtained from the Central Government, whose powers are exercised by the Registrar of Companies. As per current MCA rules the licence application is filed through the SPICe+ form along with the incorporation documents, and it must include a statement of the objects and a projected statement of income, expenditure, assets and liabilities for the next three years.
Requirements
- At least two members and two directors if formed as a private company, or seven members and three directors if formed as a public company.
- Objects that fall within section 8(1): promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment or similar.
- The intention to apply all income to those objects and to prohibit any dividend to members.
- No minimum capital. The words 'Limited' or 'Private Limited' are not required in the name.
- A DSC and DIN for each director, a registered office, and the usual identity and address documents.
- Declarations by a practising professional (form INC-14) and by the applicants (form INC-15), plus the three year projections.
Benefits
- Limited liability for members and a separate legal entity that can own property and sign contracts in its own name.
- Higher credibility with donors, CSR funders and government agencies than an unregistered group, a society or a trust.
- Companies can spend CSR money through a Section 8 company after it registers with MCA in form CSR-1.
- Eligible to apply for registration under sections 12A/12AB and 80G of the Income Tax Act so that its income is exempt and donors get a deduction.
- No minimum capital, and no need to add 'Limited' or 'Private Limited' to the name.
- Perpetual succession: trustees or members can change without affecting the organisation.
How it happens
- 01
Apply for digital signatures
The Section 8 application is filed online with the digital signatures of the directors, so the process starts with a DSC for each director. A photo, identity proof and address proof are submitted with signed forms, followed by video verification.
- 02
Get director identification numbers
A DIN is a permanent number issued by the Registrar of Companies to each director. Under the Companies Act, 2013 no one can hold office as a director without one. DINs for up to three directors are allotted through the SPICe+ form.
- 03
Reserve the company name
The name must be unique and not similar to an existing company, LLP or trademark. Names of Section 8 companies usually end with Foundation, Association, Society, Council, Institute, Federation or a similar word. Up to two names are proposed in SPICe+ Part A and the Registrar decides.
- 04
Prepare the licence and incorporation documents
The MOA in form INC-13 records the name, objects, state and capital. The AOA sets out the internal rules. ISPEED prepares the statement of objects, the three year projected statement of income, expenditure, assets and liabilities, and the declarations in INC-14 and INC-15. The promoters sign the MOA and AOA.
- 05
File for the licence and certificate of incorporation
SPICe+ Part B, the MOA, the AOA, the projections and the declarations are filed together. Once approved, the Registrar issues the Section 8 licence and the certificate of incorporation. PAN and TAN are allotted with the certificate.
Documents you will need
- Two colour passport size photographs of each director and shareholder
- Identity proof of each director and shareholder: Aadhaar card, passport, driving licence or voter ID card
- Address proof of each director and shareholder: bank statement or passbook, electricity bill, telephone bill or any other utility bill, not older than two months
- PAN card of each director and shareholder. The name must match the income tax database.
- Proof of the registered office address: sale deed, electricity bill, property tax receipt or any other utility bill
- No objection certificate from the owner of the premises where the registered office will be located
- Statement of objects and a projected statement of income, expenditure, assets and liabilities for three years, which ISPEED prepares with you
- Declarations in forms INC-14 and INC-15
Documents checklist
Section 8 company (non profit)
0 of 20 ready
Questions
Can a Section 8 company make a profit?
It can earn a surplus, but the surplus must be used for its objects. It cannot pay dividend to members, and directors cannot be paid out of profits except as allowed by the licence conditions.
How many members and directors are needed?
Two members and two directors if it is formed as a private company. Seven members and three directors if it is formed as a public company.
Does the name need 'Private Limited' or 'Limited'?
No. A Section 8 company is exempt from adding these words. Names usually end with Foundation, Association, Society, Council, Institute or similar.
Is a Section 8 company exempt from income tax?
Not automatically. It must apply separately for registration under section 12A/12AB of the Income Tax Act for exemption, and under section 80G so that donors can claim a deduction.
Can it receive CSR funds or foreign donations?
It can receive CSR money from companies after registering with MCA in form CSR-1. Foreign contributions need separate registration or prior permission under the Foreign Contribution (Regulation) Act, 2010.
Can the licence be cancelled?
Yes. The licence can be revoked if the company acts against its objects or breaches the licence conditions. The company may then be directed to convert into another type of company or to wind up.
People also need
Private limited company registration
Register a private limited company with MCA and receive the certificate of incorporation, PAN and TAN.
plus government fees
Producer company registration
Register a producer company so farmers, artisans and other primary producers can do business together with limited liability.
plus government fees
Annual ROC compliance
Keep your private limited company, OPC or LLP in good standing with every annual ROC filing done on time.
per year for a private limited company; LLP annual filings from Rs. 18,000
Tell us what you are starting.
You get the all-in price, the government fee for your state and the list of documents the same day. Then you decide.