A Section 8 Company is formed with a motive of not making any profit and with an objective of promoting commerce, art, sports, education, research, social welfare, religion, charity, protection of environment and intends to apply its profits, if any, or other income in promoting its objects. No dividend is to be paid to its members.
A Section 8 Company is similar to a Trust or Society and also enjoys all the privileges and be subject to all the obligations of a Limited Company. Approval of Central Government is required for registration of a Section 8 Company. A section 8 company has more credibility and better legal standing as compared to Trust or Society.
Any individual or company or LLP including NRl and foreigner can become the member of Section 8 Company.
In case of a Private Section 8 Company only two members are required and if it is a Public Section 8 Company then it should have seven members.
Section 8 company can appoint any number of directors. There is no requirement of minimum or no restriction of maximum number of directors. Howerver to fulfil requireent of qorum for board meeting, a section 8 company should have minimum 2 directors.
NO, the requirement of minimum paid-up share capital is not applicable to a section 8 company.
Yes, an NRI can register a Section-8 Company.
Section 8 company should have non-profit objects, and it must ensure that profit if any shall apply in promoting and supporting the objectives. It should not provide any benefit/fund to its members.
Yes, section 8 company needs to comply with annual filling with ROC each year.
No, you needn’t to be available in person, section 8 company incorporation process is online. A scanned copy of documents can be sent to us via mail, and we will handle the rest