How long does it take?
Digital Signature Certificate1 Working Day
DSC is an electronic online signature issued by licensed certifying authorities. All the proposed directors of the company required to apply for the digital signature (DSC) which is necessary for digitally signing the electronic incorporation documents. DSC can be obtained either using supporting documents or Aadhar eKYC based authentication (supporting documents are not required in this case).
Director Identification Number1 Working Day
DIN or DPIN, i.e. directors PIN is a unique eight-digit identification number which is a mandatory requirement for existing as well as proposed directors of the company to maintain the director's information in a database. MCA (Ministry of Corporate Affairs) allots a DIN to every director of the company with a lifetime validity without which one cannot be a director.
Name Approval & License15-20 Working Days*
Once we obtain the DIN and DSC of the directors, two proposed names of the company in preferential order will be submitted to MCA (Ministry of Corporate Affairs) for approval. Our representative will conduct a prior search for your name availability. Ideally, the name should be unique, suggestive of the business in order to avoid the rejection. We get your company name approved subject to availability and naming guidelines. After getting the name approval, we will apply for the section 8 license in the prescribed form along with the attachments.
* The timeline is subject to government approval
Incorporation Documents3-5 Working Days
After obtaining the name approval and license, we draft a Memorandum of association and Articles of association for your company. All the incorporation documents need to be submitted with the prescribed e-form SPICe 32 along with the AOA, MOA and subscription statement. Once all the documents are duly verified and approved by the government, the certificate of incorporation is emailed to your id. Simultaneously, we will apply for PAN and TAN of your company.
Section 8 Cost Breakdown
|Company Name Availability Search||Free|
|2 DSCs||Rs 2,000|
|Government Fee||Rs 4,300|
|Stamp Duty||Rs 1,500*|
|Notorization Cost||Rs 1,000|
|PAN & TAN Fee||Rs 175|
|Professional Fees||Rs 13,580|
|Goods & Service Tax||Rs 2,444|
|Total Cost||Rs 24,999|
*Extra charges for NRI/Foreign directors or Foreign shareholding companies
Scanned copy of PAN Card of all directors and Voter ID/ Passport/ Driving License
Latest Bank statement/ Utility bill in the name of director which should not be older than two months
Latest passport size photograph
Registered Office Proof
No Objection Certificate (NOC) from the owner, Utility bill (should not be older than two months) and Notarized Rent agreement (in case of rented property)/ Registry Proof or House Tax Receipt (in case of owned property)
What do you get
Digital signature for two directors to digitally sign the documents
Defines the rules of the business
Defines the objectives of the business
PAN number of the company to open a bank account
Tax deduction number for filing tax return
Two rubber stamps, one with the name of company and one with the name of director
Certificate of incorporation bearing company's registration number and details
Section 8 company license number
Questions? Call us on 011-395-95858
Frequently Asked Questions
What is Section 8 Company?
Section 8 Company is a non-profit organisation with the object to promote commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object provided profit is only applied for the promotion of object of the company.
Is there any restriction in law for Section 8 Company?
- Profit should be used only to promote the objects of the company
- No distribution of profit to its members
- No declaration of any dividend to its members
- No remuneration is paid to any of its members
Can an existing company obtain the status of Section 8 Company?
Yes, any company who is already in existence can obtain the status of Section 8 Company by following the same procedure with some additional documents.
Why choose Section 8 Company?
- Exempted from certain tax provisions
- No minimum capital contribution
- Registration stamp duty is exempted
How many directors and members are required to incorporate a Section 8 Company?
|In Incorporated as Private Company||In Incorporated as Public Company|
|Minimum no. of directors||2||3|
|Maximum no. of members||200||No limit|
How long is the registration valid for Section 8 Company in India?
The section 8 company formation comes into existence on issuing of incorporation certificate. A company remains active even though all the shareholders and directors of the company changed. The life span of the company will be indefinite until it is wound up either voluntarily or by order of the Court/ NCLT or merge with another company.
Does one have to present physically to incorporate a section 8 company?
No, the whole company incorporation process is online. You don't have to present at any office for incorporation. You can send the scanned copy of all the required incorporation documents via e-mail. All the forms and documents are filed electronically and even signed digitally.
Who can become a member in Section 8 Company?
Any individual or company or NRI can become the member of Section 8 Company.
Who can or cannot incorporate a Section 8 company?
Any person or association of persons (including partnership firm) or any existing company can form a section 8 company. Only an OPC (One Person Company) cannot incorporate as a section 8 company.
According to the naming guidelines which words are required to be mention in the section 8 company name?
In accordance with the Rule 8(7) of the Companies (Incorporation) Rules, 2014 the name of the section 8 company shall include the words foundation, forum, association, federation, chambers, confederation, council, electoral Trust etc.
How much capital is required to register a section 8 company?
As per the provision of the Companies Act, 2013, there is no restrictions regarding the capital of the company. The capital of the company can be increased at any stage after incorporation of the company.
Who can become a director of Section 8 Company?
Any individual or organisation or even an NRI/foreign nationals can become a director in Section 8 Company. Here are the conditions to become a director in an Indian company:
- Director must be a natural person
- He must be over the age of 18 years
- He requires a Director Identification Number (DIN)
What is the eligibility criteria for section 8 company registration?
- Object to register a section 8 company must be charitable or to promote arts, science, commerce etc.
- The intention must be to apply all its profits in promoting the objectives
- Prohibit the payment of dividends to its members.
Is conversion of section 8 company into any other form of company possible?
An existing company which is registered under section 8 can seek a conversion into any other form of business entity by making an application with RD (Regional Director. Once Regional director approve the application, the company cease to enjoy the privileges provided to section 8 company.