Section 8 Company

Section 8 Company Registration

These organizations are registered under Section-8 of the Companies Act 2013. These companies intend to promote art, commerce, sports, safety, science, research, healthcare, social welfare, religion, protection of the environment, etc. The main object of these companies ensures the promotion of the above-mentioned fields, provided the profit is used for promoting only objects of the company (Sec 8(1)(b)). Sec 8 (1) (c) states the prohibition of payment of any dividend to its members. Ministry of Corporate Affairs (MCA), administers and maintains the rules and regulations through ROC in all of the states of India.

The income of the Company must be used to promote only charitable objects and cannot pay any dividend to the members of the company. The central government provides an incorporation certificate to all such companies and also informs them about some restrictions and conditions

Minimum Requirements for Section 8 Company Registration

• Minimum 2 Shareholders (for Private Limited NGO) and 7 Shareholders (for Public Limited NGO)
• Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
• The directors and shareholders can be the same person
• DIN (Director Identification Number) for all the Directors
• DSC (Digital Signature Certificate) for all of the Directors
• Address proof for proposed office address

Eligibility for Section 8 Company Registration

• Object must be Charitable or to promote arts, science, commerce, etc
• Intends to apply all its profit in promoting the objectives
• Assures the prohibiting of the payment of dividends to any of its members