A Section 8 company can be established for the "promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object".The Act further states that a Section 8 company can purse the above objects subject to the condition that it "intends to apply its profits, if any, or other income in promoting its objectives and prohibits the payment of any dividend to its members. As per law in case the proposed section 8 company is a private limited then minimum two promoters is required, however in case it is a public limited section 8 company then minimum 7 person must be the promoters of the company.
Section 8 Company can also be registered in India. And One director must be resident of India.
The companies registered under section 8 of the companies act, cannot distribute profits or assets to its members.
The votingrights of the shareholders on the basis of the number of shares held by them.
There is No requirement of Minimum capital.Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case.
One director of company must be residence of India. A person physical presence in India during the FY is 182 days or more; or physical presence in India during the FY is 60 days or more and 365 days or more in the preceding four FYs will be called a residence.
The documentation play an important role in incorporation of company, it must be recent and eligible
We offer end to end solution for setting up Section 8 Company Registration Process. The Process is for your information.
Digital signature (DSC) is a basic requirement to initiate the Section 8 Company Registration procedure as all the forms are submitted should be self-attested
The Name of the OPC should be cross-checked with the ROC and the trademark registry to avoid any infringement of someone else Trademark or Other Company /LLP Name. The selection of a proper name should be the starting point.
An application is filed before the central government for grant of license to incorporate a company without limited in their name.
The issue of Pan Number and TAN is done automatically at the time of incorporation of the Company. There is no need to make any separate application. The PAN Number and TAN come printed on the certificate of incorporation itself, and after the registration of the Company, E-Pan and Tan letter is sent via email.
Ans. 1 The name of a section 8 company shall not include Private Limited or Limited at the end of its name and must end with any of the below words
Ans. 2 Yes, Foreign Direct Investment is allowed Section 8 Companies subject to the compliance of FEMA Regulations. However, in terms of the Foreign Contribution (Regulation) Act, 2010 [FCRA] read with the Frequently asked questions (FAQ) on the website of the ministry of the home of the union government of India, the infusion of capital in a section 8 company is a foreign contribution. In simple words, though FDI in section 8 companies is permissible, as the same is considered as a Foreign Contribution in terms of FCRA, it can be infused only with prior permission/registration from the central government.
Ans. 3 Yes, there is no specific restriction on making an investment in any other company by section 8 companies even if the investee company is a profit-making entity.
Ans. 4 In case the section 8 company is incorporated as private limited the minimum requirements of directors on the board is 2 and in case of a public limited company it must be 3.
Ans. 5 For incorporation of a section 8 company under the companies act, 2013, any document from below list of the document is acceptable as Identity Proof of the director or shareholder or the proposed company.
Ans. 6 For Company Incorporation, any one document from below list of address proof of the director or shareholder is acceptable. The document in support of address proof should not be older than two months.
Ans. 7 A Section 8 Company is incorporated with a physical address to be declared as the registered office of the newly registered company. Following are the list of the document which is acceptable as proof of premises where the registered office of the company is situated. The premises proof should not be older than two months.
Ans. 8 A registered office is required to be declared at the time of company incorporation and to be maintained by the company under section 12 of The Companies Act, 2013, which must be capable of receiving and acknowledging all communications and notices as may be addressed to it. Further, the statutory records of the company also need to be maintained at the registered address of the company. Hence having registered address at co-working space is not acceptable unless this is a lockable area.