Section 8 companies are the companies which permit the allowance or promotion of trade, commerce, arts, science, welfare, education, religion, charity or other objects provided the profits if any or other income is use to promote these.
A section 8 Company in India is registered under the Central Government’s Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations. A section 8 Company has various advantages when compared to Trust or Society like improved recognition and better legal standing. Section 8 company limited by guarantee also has higher credibility amongst donors, Government departments and other stakeholders. This is a company act which was launched in 2013.
Company limited by guarantee companies act 2013 means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up;
A section-8 Company needs a minimum of three trustees; there is no upper limit to the number of trustees. The Board of Management is in the form of a Board of directors or managing committee and should preferably be Indian nationals.
Section 8 company can be any type of company registered under Companies Act, 2013. The main difference of this type of company is this type of entity is created for not for profit purpose.
Yes. It is mandatory to have a not for profit motive of the organization.
No, at least two members/promoters are required to incorporate a section 8 company.
Any individual/organization can become a member of section 8 company including NRIs and foreigners.
You need a minimum of two directors for a section 8 company registration.
Section 8 company registration can be done within 15 days. The registration process gets completed on obtaining the license and issue of registration certificate under section 8 of Companies act 2013.
The name of section 8 company shall include the words Federation, Chamber, Foundation, Forum, Association, Confederation, Council etc.
Section 8 company registration is a complete online process.
No minimum capital is required to establish a section 8 company.