Section 8 Company Registration Online - Procedure, Documents Required, Fees
Updated on September 01, 2021 07:14:49 PM
Section 8 company is the most popular form of NGO registration and has more credibility among donors, government and other stakeholders. It has more benefits than traditional charitable institutions and is registered under the Companies Act, 2013.
The main objective of Section 8 company is to promote arts, sports, commerce, science, religion, social welfare, charity and environmental protection. Section 8 company can be registered both as a private limited company or a public limited company.
Section 8 company is an upgraded form of Society and Trust. It has many benefits over traditional forms of charitable institution registration. Section 8 company is the most popular form of NGO registration in India. It is easy to register, run and manage.
The main purpose of Section 8 company is to promote non-profit objectives such as commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment and other charitable purposes.
In effect from April 1, 2021, all NGOs need to file Form CSR-1 on MCA portal to register with Central Government. MCA has made this Form available on its website and made it mandatory for all the social organisations seeking CSR funds or CSR implementing agencies to file it. The aim of the CSR-1 Form is efficient monitoring of CSR spendings in the country.
Benefits of Section 8 Company
Eligible for grant and donations: The company becomes eligible for various grants offered by the Government of India. Further, Section 8 Companies are also entitled to receive donations from the general public.
Exemption to the donors: Those donating to a Section 8 Company are eligible for tax exemptions under 80G of the Income Tax Act.
Tax Benefits: There are many tax benefits for Section 8 companies in India.
Separate Legal Entity: The identity of the Section 8 Company and its directors are separate which means the entity will continue to survive, even if all the directors of the company become incompetent to carry on the business.
No Minimum Capital: There is no requirement of minimum paid-up capital for the incorporation of Section 8 Company.
Credibility: Section 8 Company creates their own credibility in the market by holding the License issued by the ROC and the various kinds of activity undertaken by them.
Section 8 License: The Registrar of Companies provides License to Section 8 Companies in Form INC-16.
Minimum requirements for Section 8 Company registration
Minimum 2 directors are required if Section 8 company is incorporated as a private limited company
Minimum 3 directors in case of incorporation as a public limited company
At least one director should be the resident of India
Registered office address
The objective of the company should be for charitable or social purpose only
The profit cannot be shared among shareholders
Procedure of Section 8 Company registration
Step 1. Application for Digital Signature Certificate (DSC)
Section 8 Company incorporation is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. Directors as well as subscribers to the memorandum of the company need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.
Step 2. Application for the Name Availability
Name application for Section 8 Company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.
Note:It should be ensured that company name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.
Step 3. Application for Section 8 License
For obtaining the license under Section 8 Company, Form INC-12 is required to be filed with the Registrar of Companies. Prior to issuance of Certificate of Incorporation for Section 8 company, approval letter under Section 8 of Part 1 i.e, License under Section(1) of the Companies Act, 2013 is issued from the Ministry of Corporate Affairs. Once the form is approved by the Central Government, ROC will issue a 6-digit Section 8 license number.
Step 4. Filing of SPICe Form (INC-32)
Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:
Step 5. Filing of e-MoA (INC-33) and e-AoA (INC-34)
SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.
Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.
The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.
Step 6. Application for PAN and TAN of the company
Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.
Register your Section 8 Company in India with Professional Utilities
The process of registering a Section 8 company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your Section 8 company online in 3 easy steps:
Step 2: Provide all the required documents for registration of the company and make 50% payment in advance.
Step 3: Your incorporation certificate including other documents will be delivered to you and you’ll have to make the balance payment.
Documents required for Section 8 Company registration
As per the Companies Act 2013, you need to provide proper identity and address proof to be submitted on the Ministry of Corporate Affairs (MCA) portal for Section 8 company registration.
Identity and Address Proof of Directors/Shareholders
Passport size photographs of the directors
Copy of Aadhar Card
Copy of Driving License or Voter ID
Copy of PAN Card or Passport (in case of foreign national or NRI)
Copy of latest bank statement and utility bill
Address Proof of Registered Office
Copy of electricity/water/gas bill (not older than two months)
Rent agreement in case of rented office
No Objection Certificate (NOC) from the owner of the property
Documents you’ll get after Section 8 company registration
Post incorporation of ection 8 company, you’ll receive the following documents:
Certificate of Incorporation
Section 8 License
Permanent Account Number (PAN) of the company
Temporary Account Number (TAN) of the company
Articles of Association (AoA)
Memorandum of Association (MoA)
Direction Identification Number (DIN)
Digital Signature Certificate (DSC)
EPF and ESIC registration documents
Company Master data
Section 8 Company Registration Fees
The fees for registration of Section 8 company depends upon the no. of directors, members and authorized share capital. The total cost of Section 8 company registration is ₹4,999 including government & professional fees for two directors and authorized share capital of upto 1 lakh rupees.
Digital Signature Certificate
DIN and Name Approval
MoA, AoA and Incorporation Fee
*Important Note: The total cost of registering a company varies from state to state. Refer to the map for state-wise prices.
Time required for registration process
On average, it takes around 10-14 working days to register a Section 8 company in India subject to document verification by the Ministry of Corporate Affairs (MCA).
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Frequently Asked Questions (FAQs)
Can a Section 8 company do business?
Yes, a Section 8 Company can do business for place of profit, provided the book of accounts are maintained on segmenting basis.
Is Section 8 company a private company?
Yes. It can be both a private and public limited company. In most of the cases, a Section 8 company is registered as a private limited company.
Which is better trust or Section 8 company?
Section 8 company is better than trust because least officer interventions are there in section 8 company.
Is GST applicable to Section 8 companies?
Yes, GST is applicable to Section 8 companies in case of sale and purchase of goods & services.
How to name a Section 8 Company?
Name of a Section 8 Company (NGO) should not include the words Private Limited (Pvt. Ltd.) or Limited (Ltd.) at the end of its name. The proposed name of a Section 8 Company shall include either of the words - Foundation / Forum / Association / Federation / Chambers / Confederation / Council / Electoral Trust as per Rule 8A(1)(u) of Companies (Incorporation) Fifth Amendment Rules, 2019.
Can the director of Section 8 draw salary?
Yes, the director of a Section 8 company can draw salary as he is a member and employee of the company.
What are the advantages of Section 8 companies?
There are numerous advantages of Section 8 companies like tax benefits, credibility, grants and donations, etc.
Why is Sec 8 preferred over NGO or trust?
Section 8 is an upgraded form of Society or Trust as the process and maintenance of Section is completely digital.
Does Section 8 company have share capital?
Yes, Section 8 companies have equity share capital.