Startup Center

SECTION 8 COMPANY

No Minimum Capital is required

Exempted from notify the changes in the Directors to the Registrar

Companies Incorporated for promotion of commerce, art, science, sports, education, Research, social welfare, religion, charity, protection of environment or any such other object

 Ensure that its profits and all other incomes are utilized only for the purpose of promoting its objects and not for any other purpose.

 Ensure that its profits are not distributed as dividend among its members.

 Section 8 Company cannot alter its objects clause in its Memorandum without seeking the written approval of central government.

 If the Central Government has imposed some conditions and regulations upon the company for granting a license under section 8 then such a company is bind by such conditions and has to ensure adequate compliance with them.

 If an existing company obtains a license under section 8 it has to ensure that its objects are confined to those mentioned in section 8 itself and if not make proper alteration to its memorandum and articles.

Advantages

Section 8 companies are allowed to dispense with the use of term ‘limited’ or ‘private limited’ from their names.

 No Minimum Capital is required to start up a Section 8 Companies.

 The Company can raise money by accepting deposits and selling its shares to the public.

 Section 8 companies are exempted from notify the changes in the Directors to the Registrar, it should maintain the Registrar of Directors and recorded the changes in the Directors accordingly.

 Books of accounts of Section 8 companies are to be obtained only for a period of 4 years.

 

 

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