Specific eligibility criteria must be met to establish a Section 8 company in India.

• An Indian national or Hindu Undivided Family (HUF) can incorporate a Section 8 Company.
• The entity must have at least one director.
• The primary object of the Section 8 Company should be related to promoting art and science, sports, charitable activities, education, or providing financial assistance to individuals from lower-income groups.

These eligibility criteria ensure that the Section 8 Company operates to promote social welfare and contribute to the greater good of society.

The following documents are required to complete the incorporation process for a Section 8 company in India:

• Articles of Association (AOA) and Memorandum of Association (MOA)
• Declaration by the first director(s) and subscriber(s) (an affidavit is not required)
• Proof of office address, such as a copy of utility bills like electricity, water, or gas bill
• Copy of the certificate of incorporation (COI) of an overseas corporate body (if any)
• A resolution passed by the promoter company
• Consent of Nominee (INC-3)
• Residential and identity proof of nominees and subscribers
• Applicant’s identity and residential proof
• Digital Signature Certificate (DSC)
• Declaration of unregistered companies.

By providing these documents, you can ensure smooth and efficient Section 8 company incorporation processes.

Number of Directors:

A minimum of two directors is required if the Section 8 entity intends to operate as a private limited company. However, a minimum of three directors are required if the entity aims to operate as a public limited company.

Number of Members:

If the Section 8 Company aims to function as a private limited company, the number of members is capped at 200 by the Ministry of Corporate Affairs (MCA). However, there is no such limit for Section 8 entities with a business structure like a public limited company.

Capital Requirement and Name:

According to the Companies Act 2013, Section 8 entities are not required to maintain a minimum paid-up capital. Moreover, NGOs operating as Section 8 entities are not obligated to affix terms like private limited or limited in their name.

Company Objects:

Only entities with non-profit objectives are eligible for Section 8 registration. The Memorandum of Association and Articles of Association must clearly state such goals for which the Company is established. Any profits the Section 8 entity generates must be utilized for charitable purposes or reinvested in the entity. The profit of Section 8 entities is not available to its members in any form. These legal requisites ensure that Section 8 companies operate with transparency and the intended purpose of promoting social welfare.