INCORPORATION OF SECTION-8 COMPANY UNDER COMPANIES ACT 2013
What is Section-8 Company?
Section 8 is a company that is licensed under section 8 of Companies Act, 2013, formerly known as the section 25 company under Companies Act, 1956 with its main object:-
- To promote social welfare, religion, charity, protection of the environment, research, education, sports, commerce, art, science or any such other object; and
- Intends to apply its profit, if any, or other income in promoting its object; and
- Intends to prohibit the payment of any dividend to its member,
Where it is proved to the satisfaction of central government may, by issuing license in such manner as may be prescribed, allow that person and associate of person to be registered as limited company under this section without addition to its name of the word ‘limited’ or ‘private limited’.
The minimum requirement that are necessary for such company
- There must be two shareholders;
- There must be minimum of two directors (Director and shareholder can be the same person).
- At least one of the directors shall be the resident of India.
- No requirement of minimum capital
- The Income-tax PAN is a mandatory requirement in case of the Indian nationals
- Anyone of the Identity Proof be it Voter ID/Aadhaar Card/Driving License/Passport is required; Passport is, however, a mandatory requirement for the proof of identity in case of the foreign nationals
- Anyone of the Proofs of Residence (Electricity Bill/Telephone Bill/Mobile Bill/Bank Statement)
- The Registered Office address proof (that is the rent agreement along with latest rent receipt and a copy of the latest utility bill in the name of the landlord and a no-objection certificate from the owner of the premises, in case the premises are rented)
- In case the premises are owned by either the Director or the Promoters, any of the documents establishing the ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.