Section 8 Company
5 Points You Must Know About Section 8 Company
1. Alternative ways to form NGO :
Apart from Section 8 Company, trust and society can also be formed to promote commerce, art, science, sports, education, etc. Each form has its advantages and demerits. So, you must take an informed decision after discussing it with your consultant.
2. Compliances and Regulations:
The rules, regulations and compliances as prescribed under the companies act, 2013 must be adhered to. So, it is better to make a list of compliances with your consultant, applicable in your case.
3. Minimum No. of Shareholders and Directors:
The minimum no. of shareholders and directors in a section 8 company is 2. The directors and the shareholders can be the same person.
4. No Minimum Share Capital:
There is no minimum capital prescribed for a section 8 company. So, section 8 company can be incorporated without any paid-up share capital.
5. Indian Resident:
As per the provisions of the Company Act 2013, every company incorporated under section 8 must have at least one resident director. A resident director means one who has resided in India for 182 days or more within the previous calendar year.
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FAQ`s Regarding Section 8 Company
Section 8 of the companies act 2013 deals with the formation of a company with charitable objects etc. There are 11 sub-sections under section8 of the company act 2013. These sub-sections explain the whole concept, procedures, compliances and rules regarding charitable companies.
Section 8 companies are those companies that are formed as per the rules and regulations of section 8 of the company act2013. Section 8 deals with the company created for charitable objects. So, it can simply mean that section 8 company is a charitable or non -profit company or an NGO formed as per the company act 2013.
A minimum of two shareholders and directors are required to form a section 8 company. The shareholders and directors can be the same person. Also, at least one director should be a “ Resident in India ”.
You need to have a class 3 Digital signature and DIN no. to start the process. However, even if you do not have the DIN no. you can begin the formation of section 8 company by applying for the DIN number and applying for incorporation of the section 8 company.
You need to fill nine different types of the form online on the MCA portal for the formation. The name of the forms are as follows:
2. INC 12
3. INC 13
4. INC 14
5. INC 15
6. INC 16
7. INC 22
8. DIR 2
9. DIR 12