Section Explainer · Company Registration
Section 8 Microfinance Company Registration Fees (India, 2026)
A section 8 company is a not-for-profit company, and some people set one up intending to do microfinance or community lending work. The registration fees are not one single number: they are a mix of government filing charges, stamp duty that varies by state, and a professional fee for getting the paperwork right. This guide breaks down what a section 8 company is, what the registration fees are made of, the important question about whether microfinance needs RBI approval, and how to register online.
- What it is: a section 8 company is a not-for-profit company; profits go to its objects, not to members.
- Fees are a mix: name reservation, licence and incorporation government fees, state stamp duty, DSC and DIN, and a professional fee.
- No single number: government fees depend on capital and state stamp duty, so confirm current charges on mca.gov.in.
- RBI caveat: doing microfinance as lending may need RBI registration as an NBFC-MFI; a plain section 8 company is not automatically allowed to lend.
- Documents: director IDs, office proof, memorandum and articles for the not-for-profit object, and the licence declarations.
- Process: DSC and DIN, name reservation, section 8 licence, incorporation, then any separate RBI step before lending.
01What a section 8 company is
A section 8 company is a company formed under section 8 of the Companies Act for a not-for-profit object, such as promoting commerce, art, science, education, charity or social welfare. Its profits must be used for its objects and cannot be paid out as dividends to members.
- It is registered with the Ministry of Corporate Affairs, like any other company.
- It needs a licence under section 8 before incorporation.
- It enjoys certain relaxations but also carries strict conditions on how income is used.
Not-for-profit does not mean no compliance
A section 8 company still files annual returns and financial statements and must keep its activity within its stated objects. The not-for-profit status is about where profit goes, not about skipping compliance.
02What the registration fees are made of
The total cost of registering a section 8 company is not a single government fee. It is built from several parts, and only some are fixed by rule.
| Component | What it covers |
|---|---|
| Name reservation | A government fee to reserve the company name |
| Section 8 licence and incorporation | Government filing fees for the licence and the incorporation form, as notified |
| Stamp duty | Charged on incorporation documents and varies by state |
| DSC and DIN | Digital signature certificates for directors and director identification |
| Professional fee | What a CA, CS or firm charges to draft and file everything |
Because stamp duty and professional fees vary, two section 8 companies can cost different amounts. For the government-fee side across company types, see government fees for company registration.
03The microfinance and RBI question
This is the part people most often get wrong. Doing microfinance, meaning lending as a financial activity, usually falls under the Reserve Bank of India's rules on non-banking financial companies (NBFCs), including microfinance NBFCs. A plain section 8 company is not automatically allowed to run a lending business.
- A section 8 company carrying on microfinance may need to meet RBI conditions, and certain NBFC-MFI activity requires RBI registration.
- Some narrow, genuinely charitable credit activity may sit outside NBFC rules, but this is a legal judgement, not an assumption to make on your own.
- Getting this wrong can mean doing regulated lending without permission, which carries serious consequences.
So before you register a section 8 company to do microfinance, get clear professional advice on whether RBI registration is needed for your specific plan.
04Documents required
The documents are broadly the same as for other companies, plus the section 8 licence paperwork.
- PAN and ID or address proof of each director and subscriber.
- Proof of the registered office address.
- Memorandum and articles of association drafted for the not-for-profit object.
- A declaration and the projected income and expenditure supporting the section 8 licence.
For the general company-document checklist, see documents required for a private limited company.
05How to register online
Registration is done online on the MCA portal.
- Get a DSC for each proposed director and apply for DIN where needed.
- Reserve the company name on mca.gov.in.
- Apply for the section 8 licence and file the incorporation forms with the memorandum, articles and declarations.
- Pay the government fees and stamp duty.
- On approval, receive the certificate of incorporation and the section 8 licence.
Separately handle any RBI step if your microfinance plan needs it, before you start lending.
06How Claw Tax helps
Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.
A section 8 company for microfinance has two tricky parts: the incorporation itself, where the objects and the licence paperwork must be drafted carefully, and the regulatory question of whether RBI permission is needed before you lend. With Claw Tax and Accounts, a verified chartered accountant handles the incorporation at a fixed, published price plus the actual government fees, a Claw reviewer checks the filing before submission, and you are told plainly if your lending plan needs separate RBI registration rather than being pushed into a structure that does not fit. The MCA filings can be done yourself, but the combination of not-for-profit objects and regulated lending is where getting advice first saves trouble.
This is an online service, and it is not tax advice; a verified CA handles your specifics.
07Frequently asked questions
What are the fees to register a section 8 microfinance company?
There is no single fee. The cost is made up of a name reservation fee, government filing fees for the section 8 licence and incorporation, state stamp duty on the documents, digital signature certificates and DIN for directors, and a professional fee for drafting and filing. Because stamp duty and professional charges vary, the total differs from case to case, so confirm current government fees on mca.gov.in.
Can a section 8 company do microfinance without RBI approval?
Not safely as an assumption. Microfinance in the sense of lending is usually a regulated financial activity under the Reserve Bank of India, and certain NBFC-MFI activity requires RBI registration. A plain section 8 company is not automatically permitted to run a lending business. Get specific professional advice on whether your plan needs RBI registration before you start lending.
What is a section 8 company?
A section 8 company is a company formed under section 8 of the Companies Act for a not-for-profit object such as charity, education, social welfare or promoting commerce, art or science. Its profits must be applied to its objects and cannot be distributed as dividends to members. It is registered with the Ministry of Corporate Affairs and needs a section 8 licence before incorporation.
What documents are needed to register a section 8 company?
You need PAN and ID or address proof for each director and subscriber, proof of the registered office address, a memorandum and articles of association drafted for the not-for-profit object, and the declarations and projected income and expenditure that support the section 8 licence. Digital signature certificates for directors are also required for the online filing.
How long does section 8 company registration take?
Timing depends on how quickly the name is approved, the section 8 licence is granted and the incorporation forms are processed by the MCA, and on how complete the paperwork is. Clean, correctly drafted documents move faster. Any separate RBI step for a microfinance plan is in addition to incorporation and should be planned before you intend to begin lending.
Is a section 8 company exempt from compliance?
No. Not-for-profit status is about where profit goes, not about skipping compliance. A section 8 company still files annual returns and financial statements with the MCA, keeps proper books, and must stay within its stated objects. If it carries on regulated activity like lending, it also has to meet the relevant regulator's rules.