FREQUENTLY ASKED QUESTIONS (FAQs)
Any person or Number of associated persons intending to register a limited liability company for the objects as Promotion of commerce, art, science, sports, education, research, and social issues like social welfare, religion, charity, protection of the environment or any other object can opt to apply for Company Registration or Company Formation under Section 8.
No, section 8 company name need not end with limited as last last world. This is an exemption given by Companies Act to section 8 company as such type of company is formed for charitable or non profit motive business.
No. Rule 20(1) of the Companies (Incorporation) Rules, 2014 provides that only a limited company registered under this Act or under any previous company law shall make an application to the Registrar for the issue of license. Therefore, a company with unlimited liabilities cannot be registered as a Section 8 Company.
Yes. As per rule 8(7) of the Companies (Incorporation) Rules, 2014, for the Companies under Section 8 of the Act, the name shall include the words foundation, Forum, Association, Federation and the like etc
Has a place in India where business is conducted, whether bought by itself or through an agent, through physically or through online is conducting any business activity in India.
Now since a Company or a body corporate incorporated outside India for doing not for profit activities, which has opened a branch/liaison office in India, cannot fall in the definition of a foreign company as a business activity is missing. Therefore, such a company cannot be termed as a foreign company. However, subject to compliance with FEMA regulations, it can open branch/liaison offices. Such not for profit companies or bodies corporate incorporated outside India can promote and register a Section 8 Company in India as a distinct entity.