A Section 8 company is a not-for-profit incorporated under the Companies Act, 2013 for charitable, educational, scientific, social or similar objects. Its income must be applied to those objects; it cannot pay a dividend.
Setting one up costs more and takes longer than any other structure in India, because a Central Government licence has to be granted before incorporation can happen at all.
Section 8 registration fees, the components
| Item | Amount |
|---|---|
| Name reservation | ₹1,000 |
| Licence application | Prescribed government fee |
| Incorporation filing | Nil for authorised capital up to ₹15 lakh |
| State stamp duty | Varies by state; concessions apply in several states |
| Digital Signature Certificate | ₹1,500 – ₹2,500 per director |
| DIN, PAN, TAN | No separate charge |
Verified 4 August 2026. Several states grant stamp duty concessions to Section 8 companies, confirm your state before assuming the standard rate. Message us for our current fee.
There is no minimum paid-up capital requirement. Keep authorised capital modest; as with any company, it drives stamp duty now and filing fees later.
The licence is what makes this different
Unlike every other company type, a Section 8 company cannot be incorporated first and approved later. The licence under Section 8 must be granted before the Registrar will incorporate it.
That single fact is what separates the two. A private limited company is filed and registered; a Section 8 company must first be licensed, because licence approval sits ahead of everything else in the queue.
- Name reservation
- Preparation of the Memorandum in the prescribed form, with the declarations that accompany it
- Licence application, with the estimated income and expenditure statement for the next three years and a statement of the proposed work
- Licence granted
- Incorporation filed and certificate issued
The costs that come after incorporation
Incorporation is not the end of the spend. Nothing about a Section 8 company works commercially until the tax registrations are in place, and each is a separate application.
| Registration | What it enables |
|---|---|
| 12A / 12AB | Exemption from income tax on the entity's income |
| 80G | Donors can claim a deduction on their donations |
| CSR-1 | Eligibility to receive corporate CSR funds |
| FCRA | Eligibility to receive foreign contributions |
| Darpan (NGO Darpan) ID | Commonly required for government schemes |
Until 12A and 80G are granted, the entity is taxable and donations to it are not deductible. Corporate donors will not release funds against an organisation that cannot give them an 80G receipt. Budget for these applications at the same time as incorporation, not a year later.
What a Section 8 company costs every year
Statutory audit is required regardless of turnover, as it is for any company. On top of that sit the ROC filings, the income tax return and the conditions attached to the licence itself.
- Statutory audit, mandatory, whatever the size
- AOC-4 and the annual return
- Income tax return, including the returns specific to exempt entities
- Compliance with the conditions on which the licence was granted
- Conditions attached to 12A and 80G, where registered
- FCRA returns, where registered
In practice the annual cost sits at or above that of a private limited company, because the audit is the same and the tax compliance is more specialised.
Where a trust or society costs less
| Section 8 Company | Trust or Society | |
|---|---|---|
| Governing law | Companies Act, 2013 | Trusts Acts / Societies Registration Act, 1860 |
| Approval before formation | Licence required | No central licence |
| Time to form | Longest | Shorter |
| Statutory audit | Mandatory | Depends on the statute and state |
| Annual ROC filing | Yes | No |
| Recognition by funders | Generally strongest | Variable |
| Compliance burden | Heaviest | Lighter |
How to read a Section 8 quote
- Does it include the licence application, or only incorporation?
- Does it include drafting the Memorandum in the prescribed form and the accompanying declarations?
- Does it include the three-year income and expenditure projection?
- Are 12A and 80G applications included, or quoted separately?
- What will the first full year cost, including the statutory audit?
- Has anyone asked whether a trust or society would serve you better?
The last question is the one that separates advice from a sale.
What the licence actually involves
A Section 8 company needs a licence from the Central Government, applied for as part of SPICe+ rather than as a separate prior application. This is the part most cost articles are vague about, and the vagueness hides where the time goes.
| Item | Position |
|---|---|
| SPICe+ filing fee | Nil for authorised capital up to ₹15 lakh |
| Name reservation | ₹1,000 |
| Licence application | Filed within SPICe+, prescribed fee |
| MOA and AOA stamp duty | State levy, computed on authorised capital |
| Digital signatures | ₹1,500 to ₹2,000 per director, a vendor charge |
| Draft objects and declarations | Prepared by the professional, not a government charge |
What follows the licence
Registration is the beginning. A Section 8 company that intends to receive donations needs more, and each of these has its own timeline and its own consequences for getting it wrong.
- 12A registration, for the company's own income to be exempt
- 80G registration, so donors can claim a deduction
- CSR-1, to be eligible to receive corporate social responsibility funds
- FCRA registration, before receiving any foreign contribution at all
Questions About Section 8 Company Registration Fees
Statutory figures on this page verified 4 August 2026.