Section 8 Company

Section 8 company can be established for the “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”. The Act further states that a Section 8 company can purse the above objects subject to the condition that it “intends to apply its profits, if any, or other income in promoting its objects” and “intends to prohibit the payment of any dividend to its members.”. In simple terms, a Section 8 company must promote a public cause and the proceeds generated by the entity must solely be used to support the stated public cause(s) only.

The minimum requirements that are necessary for such company are:

• There must be Minimum of two shareholders;
• There must be Minimum of two Directors (Directors and shareholders can be the same person);
• At least one of the Director shall be the  resident in India;
• There is No requirement of Minimum capital
• The Income-tax PAN is a mandatory requirement in case of the Indian nationals;
• Any one of the Identity Proof be it Voter ID/Aadhar Card/Driving License/Passport is required; Passport is, however, a mandatory requirement for the proof of identity in case of the  foreign nationals;
• Any one 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 and the  Promoters, any of the documents establishing the ownership such as Sale Deed/House Tax receipt etc along with the no objection certificate.