Section 8 Company Registrations
The primary purpose of registering a company as a Section 8 Company is to promote non-profit objectives such as trade, commerce, arts, charity, education, religion, environment protection, social welfare, sports research, etc.
To incorporate a Section 8 Company, a minimum of two directors are required. Also, there is no requirement of minimum paid-up capital in the case of Section 8 Company. A Section 8 Company is the same as the Section 25 Company under the old Companies Act, 1956. As per the new Companies Act of 2013, Section 25 has now become Section 8.
Section 8 Company
Benefits of Section 8 Company Registrations
Important Points of Section 8 Company
No Profit Motive
The companies registered under section 8 of the companies act, cannot disburse profits or assets to its members as per the Companies Act.
Voting Rights
The voting rights to the members of section 8 company are based on the number of shares, similar to that of any other company under Companies Act.
No Minimum Capital
There is no minimum level of capital prescribed, hence a section 8 company can be incorporated with the capital as required by it.
One Resident Director
One director of the company must be resident of India. A person is said to be a resident when he stays in India at least 182 days in the F.Y.