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How Much Does It Cost To Register a Section-8 Company

Section-8 Company is a form of Non-governmental organization (NGO). The objectives of section-8 companies are to promote social causes, such as sports, religion, art, and culture. It is one of the most trusted forms of NGO registration in India. Section-8 NGOs are tax-free, and the government registration fees for these NGOs are the lowest among all types of company structures.

How To Register A Section-8 Company?

The following requirements are to be fulfilled for registering a Section-8 in India. A minimum of two directors are needed to register for a section-8 (NGO), and no minimum capital is required for Incorporation.

Step-1 Obtaining DSC

A digital signature certificate is mandatory. DSC is used to authenticate the documents submitted on the MCA online portal. 

The list of following documents is required to acquire a DSC.

  • Identity proof of Director ( Such as Aadhaar card )
  • PAN Card
  • Passport
  • Passport size photo
  • Phone number
  • Email Address

Step-2 Obtaining DIN

The director of a company must get a director identification number (DIN). All businesses must have a director identification number. Each director of a company is required to obtain a DIN. However, for company registration, only one DIN is needed.

Step-3 Register a name for the company

Getting a name for the business entity is important. The name should be unique and not have any resemblances with existing registered and designated companies.

Step-4 Obtaining MoA and AoA

Both Memorandum of association and Article of the association must be attached along with DSC and DIN while filing for the SPICe+ form for Section-8 company registration on the ministry of corporate affairs web portal.

Step-5 issuance of COI

The certificate of Incorporation(COI) for your Section-8 company will be issued after all the documents are affirmed by the registrar of companies (ROC).

Section-8 Company Registration Fees

The government fees for stamp duty are only Rs. 10, up to the nominal capital of INR 10 lakhs. However, other factors and costs are involved in the Incorporation of a Section-8 company.

Additional cost involved in Section-8 NGO registration.

Steps  Fees 
Obtaining DSC  Rs. 1200
Obtaining DIN  Rs. 500 per person 
Registering a Unique name  Rs. 1000
Note: Legal professional fees are not included. 

Section-8 company registration consultants in India

Applying for a Section-8 company or any other form of company registration seems easy and hassle-free. Yet it has various adherence and regulations to be followed before and after the Incorporation. We at professional utilities can help you through the Incorporation process in simple steps with our team of experts at the Lowest consulting fees.

Advantages of Section-8 Company Registration

  • Separate legal entity:-

Section-8 companies are registered under the MCA companies act 2013. Accordingly, it enjoys all the benefits of a private limited company and is deemed a separate legal entity.

  • Limited liability:- 

A Section-8 is deemed a separate legal entity from its owners. Therefore liabilities of stakeholders are limited. This means the personal assets of stakeholders are not affected. 

  • Relaxation From Tax:-

Section-8 is a type of NGO registration; therefore, it carries its functions on donations from the public. Section-8 NGOs are given exemptions from tax under 80g and 12A certification.

Compliances with Section-8 company registration

  • Filing an annual return
  • Filing of annual income tax return
  • Appointment of auditor (ADT-1)
  • Disclosure of interest and other entities
  • Mandatory Four board meetings each calendar year

FAQs

How much does it cost to register a Section-8 company in India?

The registration fees for Section-8 companies vary from state to state, and it does not include the cost of obtaining DSC and DIN or the professional consultant cost. 

Our “Section-8 company registration” cost starts from Rs. 4,999* depending on the state of Incorporation(Excluding govt fees), including expert advice throughout the Incorporation process.

Does Section-8 company have share capital?

 Yes, Section 8 companies can be registered as public and private companies; therefore, it does have equity shares.

How to register a Section-8 company online?

To incorporate a Section-8 company online, applicants must first acquire a DSC and a DIN. Then you can create a director account on the MCA portal to fill the SPICe+ -INC 32 form to register a section-8 company.

How much is share capital required to register a Section-8 company?

 There is no minimum share capital set by authorities to set up a Section-8 company.

How many members are required to start a Section-8 company?

A minimum of 2 members are required to incorporate Section-8 NGOs.

Why is Section-8 favoured over Trust?

Section-8 company is an upgraded form of Trust for society-run NGOs. It is more reliable and easy to form.