What is a Section 8 Company?
A Section 8 company is a not-for-profit organization registered under Section 8 of the Companies Act, 2013. It is formed to promote objects such as charity, education, science, art, sports, research, social welfare, religion, environment protection, or trade promotion. Any profit it earns must be used only for these objects. Its members cannot get dividends.
CA Arpit Gupta helps you register a Section 8 company from start to finish, including the licence, PAN, TAN, and tax registrations.
Who Should Register a Section 8 Company?
- Start an NGO for health, education, or child and women welfare
- Run a foundation for a social or charity cause
- Form a chamber of commerce or trade association
- Set up a sports club or cultural body
- Promote science, research, or environment work
- Raise donations and grants in a clean, legal way
- Apply for CSR funds from companies
- Receive foreign donations after getting the required approval
Key Features of a Section 8 Company
| Feature |
Details |
|
Legal identity
|
Separate from its members and directors
|
|
Objects
|
Only non-profit objects allowed under Section 8
|
|
Profit use
|
Used only to promotion of the items, never distributed with members
|
|
Dividend
|
Not allowed
|
|
Liability of members
|
Limited to the amount unpaid on shares, or the guarantee given
|
|
Name
|
Not should be end with "Private Limited" or "Limited"
|
|
Minimum capital
|
No minimum paid-up capital required
|
|
Licence
|
Issued by the MCA Regional Director
|
|
Perpetual existence
|
Continues even if members or directors change
|
Types of Section 8 Company
| Type |
Minimum Directors |
Minimum Members |
|
Private Section 8 Company
|
2
|
2
|
|
Public Section 8 Company
|
3
|
7
|
|
Company limited by guarantee
|
As per the type above
|
As per the type above
|
|
Company limited by shares
|
As per the type above
|
As per the type above
|
Most NGOs start as a private company limited by guarantee, because it needs fewer people and is easy to manage.
Documents Required for Section 8 Company Registration
For every director and member:
- PAN card
- Aadhaar card
- Passport-size photograph
- Address proof, such as a bank statement or utility bill (not older than 2 months)
- Email ID and mobile number
- Digital Signature Certificate (DSC) and Director Identification Number (DIN)
For the registered office:
- Property tax, water bill, or electricity bill receipt (not older than 2 months)
- Rent agreement, if the office is rented
- No Objection Certificate (NOC) from the property owner
For the licence application:
- Main objects of the company, written clearly
- Expenditure and estimated income for the next 3 years
- Details of how profit will be used for the objects
- Declarations by the professional and by the first directors and subscribers
- Articles of Association (AOA) and Draft Memorandum of Association (MOA)
Section 8 Company Registration Process
| S.N. |
Step |
What Happens |
| 1 |
Consultation
|
CA Arpit Gupta understands your cause and plans the structure
|
| 2 |
Collect documents
|
You share KYC and office documents
|
| 3 |
DSC and DIN
|
Digital signatures and director numbers are arranged
|
| 4 |
Name approval
|
Name is applied on the MCA portal
|
| 5 |
Drafting
|
MOA, AOA, and the 3-year income and expense plan are prepared
|
| 6 |
Licence application
|
Application for the Section 8 licence is filed with the MCA through the SPICe+ system
|
| 7 |
Review by Regional Director
|
The officer checks the application and may ask questions
|
| 8 |
Licence issued
|
The licence is granted, and the company is incorporated
|
| 9 |
Certificate of Incorporation
|
You receive the certificate with CIN, PAN, and TAN
|
| 10 |
Post-registration setup
|
Bank account, 12A, 80G, and other registrations
|
How Long Does Section 8 Registration Take?
| Stage |
Usual Time |
|
Document collection and DSC
|
2 to 4 days
|
|
Name approval
|
2 to 5 working days
|
|
Licence application and review
|
10 to 20 working days
|
|
Total time
|
About 15 to 30 working days
|
The time can go up if the Regional Director raises a query, or if the objects or name need changes.
What is the Section 8 Registration Cost?
The cost has two parts:
| Part |
What It Covers |
|
Government charges
|
ROC fees, stamp duty on MOA and AOA (changes by state), and DSC cost
|
|
Professional fee
|
CA Arpit Gupta's fee for planning, drafting, filing, and follow-up
|
Government costs depend on your state and authorised capital. CA Arpit Gupta gives you a clear fee quote before work starts, with no hidden charges. Call +91-7081220600 for the exact cost.
Rules a Section 8 Company Must Follow
- Use the income and property only for the stated objects
- Do not pay dividends to members
- Keep separate books of account and a bank account
- Take prior approval of the Regional Director before changing the objects or MOA in certain cases
- On winding up, the property cannot go to members. It must go to another non-profit with similar objects
- Directors and members must act within the law, or the licence can be cancelled
Why Choose CA Arpit Gupta for Section 8 Registration?
A Section 8 licence needs careful drafting of objects, a clear income plan, and correct filing. A smallest error can lead to delay or rejection. With CA Arpit Gupta, you get:
- Advice from a qualified Chartered Accountant
- Clear plan on the best structure for your cause
- Name check to reduce the chance of rejection
- Careful drafting of objects, MOA, and AOA
- Complete filing and follow-up with the department
- Support for 12A, 80G, CSR-1, and FCRA after registration
- Updates at every step, in simple language
- Online service for clients in any city in India
- Fair fee with no hidden charges
Register Your Section 8 Company with CA Arpit Gupta Today
Give your cause a strong and trusted legal base. Get your Section 8 company registered, tax-ready, and compliant with the help of an experienced Chartered Accountant.
Contact CA Arpit Gupta on Call or WhatsApp: +91-7081220600
Call now to book a free consultation and start your Section 8 company registration.