Section 8 Company Registration in India

A Section 8 Company is registered as a Non-Profit Organization (NPO) under the Companies Act, 2013. The primary objective of such companies is to promote charitable causes such as arts, commerce, education, environmental protection, social welfare, and other similar objectives.

Unlike traditional companies, Section 8 Companies cannot use the words “Limited” or “Private Limited” in their names. However, they enjoy the same privileges, rights, and obligations as other limited companies—except that all income and profits are mandatorily applied towards promoting their stated objectives, rather than being distributed to members.

Section 8 Companies are a widely recognized legal structure for Non-Profit Organizations (NPOs) and Non-Governmental Organizations (NGOs) in India. They are permitted to operate across the nation.

Section 8 Company Registration Requirements

• Registration under the Companies Act, 2013.
• License from the Central Government under Section 8 of the Act.
• Minimum Requirements:
  • Private Limited Section 8 Company → At least 2 promoters.
  • Public Limited Section 8 Company → At least 7 promoters.
• The license allows companies to remove “Limited” from their name and provides exemptions and reduced compliance fees.

Section 8 Company Registration Fees

The cost of registration depends on the type of company structure chosen:

• Private Limited Company → Govt. Fee ₹7,000 – ₹15,000 | Professional Fee ₹15,000 – ₹25,000 | Additional Fee ₹2,500 – ₹3,000
• Public Limited Company → Govt. Fee ₹20,000 – ₹50,000 | Professional Fee ₹30,000 – ₹50,000 | Additional Fee ₹3,000 – ₹5,000
• LLP (Limited Liability Partnership) → Govt. Fee ₹5,000 – ₹10,000 | Professional Fee ₹5,000 – ₹10,000 | Additional Fee ₹2,500 – ₹3,000
• One Person Company (OPC) → Govt. Fee ₹7,000 – ₹15,000 | Professional Fee ₹12,000 – ₹20,000 | Additional Fee ₹2,500 – ₹3,000
• Section 8 Company (NPO/NGO) → Govt. Fee ₹5,000 – ₹10,000 | Professional Fee ₹20,000 – ₹30,000 | Additional Fee ₹2,500 – ₹3,000

Documents Required for Section 8 Company Registration

• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• Memorandum of Association (MoA)
• Articles of Association (AoA)
• Identity Proof (Aadhar, Passport, Voter ID, etc.)
• Passport-size Photographs
• Director details (if members are other Companies/LLPs)
• Address Proof of registered office

Section 8 Company Registration Process

• Apply for DSC & DIN – All directors must obtain a Digital Signature Certificate and Director Identification Number.
• Name Approval – Submit 3 unique name options to MCA. The chosen name must be relevant and non-conflicting.
• License Application – Apply to the MCA for a Section 8 license. MCA may seek clarifications or approvals from regulatory authorities.
• Approval & License Issuance – The Registrar may publish a public notice for objections. Upon satisfaction, the license is issued.
• Drafting of MoA & AoA – Must define the charitable objectives clearly and be filed with MCA.
• Certificate of Incorporation – Issued within 15–25 days with a unique CIN (Corporate Identity Number).
• PAN, TAN & Bank Account – Apply for PAN and TAN within 7 working days, then open a bank account using incorporation documents.

Key Conditions for Section 8 Companies

• Minimum 2 Directors (Private) or 3 Directors (Public); maximum 15 (can extend via special resolution).
• At least 1 Indian resident director (staying 182+ days in the previous year).
• Minimum of 2 subscribers (Private) or 3 subscribers (Public) to the MoA.
• Capital contribution must be deposited within 2 months of incorporation.
• Property ownership lies with the Company, not individuals. Disposal must comply with the Act.
• On dissolution, remaining assets must be transferred to another Section 8 Company with similar objectives.
• Mandatory annual filing of accounts, statements, and returns with the ROC.
• All Directors must hold valid DIN and DSC.

Why Register with Taxation Point India?

At Taxation Point India, we simplify the Section 8 Company Registration process by providing:

• ✔ Expert drafting of MoA & AoA tailored to charitable objectives.
• ✔ Complete assistance with DSC, DIN, MCA filings, and compliance.
• ✔ Guidance on statutory benefits, exemptions, and reduced fee structures.
• ✔ Hassle-free processing of PAN, TAN, and bank account opening.

With our end-to-end professional support, NGOs and NPOs can focus on their mission, while we ensure seamless compliance and legal recognition.