A Section 8 Company is enlisted under the Central Government’s Ministry of Corporate Affairs. The purpose behind such type of incorporation of the non-profit making organization is to promote sports, science, art, research, education, social welfare, charity, religion, and environment protection, and so on., where the benefit doesn’t play any role. It is, still, essential to have objects with non-profit purposes. The life of such type of organization is not based on or is connected to the life of a specific individual or individuals. It could, still, go on indefinitely until it accomplishes its purpose, combines with another business, or it goes bankrupt.

The blog will tell us about how many individuals are needed for such a company. According to the Companies Act, 2013, there is, still, no such limitation regarding the capital which is needed to incorporate an organization. This limit can, still, be increased at any stage of the business in the future as the business grows. But the Minimum of two directors is needed if it is incorporated as a  private limited and a minimum of three directors is needed if incorporated as a public limited company.  Maximum there can be 200 individuals if it is incorporated as a  private limited, but if it is incorporated as public limited then there is no limit as such. The director of the company who is needed must be a natural person and should be above 18 years of age. He might or might not be a resident of India. Even the foreign nationals are acknowledged to be the directors of the  Indian Section 8 company.

However, the advantages that are acknowledged with such type of organizations are:-

Forming a Section 8 Company is a simple procedure

  • The Minimum paid-up capital is not needed
  • It is exempted from Stamp duty enrollment
  • Any of the enlisted partnership firms can be a member in its individual capacity
  • There are Tax deductions advantages u/s 12AA and u/s 80G of Income Tax Act to the donors of the organization
  • It also has better flexibility

For the incorporation of a Section 8 Company, it is necessary that the directors have a non-profit objective to incorporate a Section 8 company.-

As we look around us, we see that everyone is running behind money. But there exists, still, many institutions at large whose purpose is to serve the society and to provide their good quality services with all the best possible efforts in all the areas, particularly, the remote areas where the government is not able to reach. But being a part of this type of society, the government also supports such companies in their best method and also gives all possible assistance.

Now Section 8 Company Registration is accessible online with the help of LegalRaahi.