Online Section 8 Company Registration in India
Any person or association of person with the intention to promote charitable objects etc. can register a section 8 company under Company Act, 2013. The main objects of a Section 8 company is to promote charitable objects like promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment etc. Section 8 Companies are not required to add the suffix Limited or Private Limited at the end of their name. These companies shall include the words like – Foundation, Forum, Association, Federation, Chamber ,Confederation ,Council, Electoral trust and the like etc.
The profit of Section 8 companies are applied towards the furtherance of their objects and no dividend is paid to any of their members. The incorporation certificate is obtained from the Central Government and are liable to adhere to rules laid by the government. Also, it takes only 15-20 days to register a section 8 company and the entire registration process is online based.
Section 8 Company :
As per Section 8 of the Companies Act, 2013, Any person or Association of person can register a section 8 company provide the following conditions are satisfied.
- Have its primary objects work for the welfare of the society in the fields of science, art, sports, education, research, environment protection etc.
- Intends to apply its profits , if any for the promotion of its objects
- Intends to prohibit the payment of dividend to its members
Some of the key characteristics of a Section 8 Company are as below
1. Charitable Objects
The primary purpose of a Section 8 company should be to promote charitable objects which includes in the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment etc.
Shareholders are the owners of the company. Minimum of 2 member in case of private limited company and 7 members in case of public limited company are required to form a Section 8 Company.
Directors are appointed by the shareholders to govern the affairs of the company. There is no minimum directors required for a section 8 company. Maximum Directors allowed is 15. At least one Director should be an Indian citizen. The Directorship in Section 8 companies shall not be counted for the overall ceiling of number of directorships a director can hold at any point of time.
4. Use of Suffixes
Section 8 company shall include the words like – Foundation, Forum, Association, Federation, Chamber, Confederation, Council, Electoral trust and the like etc. The name shall not include “Private Limited” or “Limited” as the case may be.
5. Share capital
There is no requirement for Minimum share capital in case of Share capital. A Section 8 company can be incorporate with or without share capital as well.