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Section 8 Company Incorporation

A 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 incorporation process of section 8 company is similar to a Private Limited Company. A minimum of two Directors is required to start a Section 8 company. One of the directors must be an Indian Citizen and Indian Resident - whereas one or more persons acting as Director can be an Indian National or Foreign National. In addition to the required number of persons, a registered office address within India would be required for the Section 8 Company. 

Documents Required for Registration of Section 8 Company are:
1. PAN of proposed directors
2. Address Proof of proposed directors (Passport. Driving License, Electricity Bill, etc)
3. Proof of Ownership (in case of owned premises)
4.  Rent Agreement (in case of rented premises)

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