section 8 company registration hyderabad - how to register one person company ? | Lawyer Services in Hyderabad
What is Section 8 Company :
Section 8 of the Companies Act 2013 provides for the formation of the companies with charitable objects etc. Section 8 Company, is a legal entity for Non-Government or Non-Profit Organizations.

Examples of Section 8 Companies :
Infosys Foundation, Reliance Foundation, TATA Foundation, Reliance Research Institute, OTC- Over the Counter Exchange of India, etc

Objectives of Section 8 Companies :
The purpose for which section 8 companies are formed is essentially to work for the welfare of the society to promote commerce, arts, science, sports, education, research, social welfare, protection of the environment or any other such object. A section 8 company is registered with Ministry of Corporate Affairs under the Central government.

  • Identity proof : PAN of all Directors and Promoters
  • Address proof : Aadhar card/Driving License/Passport/Telephone or Electricity bill
  • Passport size photograph of the Directors/Promoters
  • Rent Agreement or Leave & License Agreement (if office premises is rented)
  • Utility bills of registered office
  • Form DIR-2 – Consent to act as the Director
  • Details of Director’s directorship in any other Companies/LLPs if any
  • DSC and DIN for all Directors and Promoters of the Company
  • MOA and AOA
  • Application for name availability must be made in “Reserve Unique Name” facility. The name of Section 8 Company shall include the words Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, and the like etc.
  • Memorandum and articles of association of the company shall be signed by each subscriber to the memorandum who shall mention his name, address, description and occupation, if any, in the presence of at least one witness who shall attest the signature and shall likewise sign and add his name, address, description and occupation.
  • After approval of name by CRC, one can make an application in Form INC-12 to the Registrar for a license under sub-section (1) of section 8. Once the form INC-12 will be approved, License under section 8 will be issued in Form INC-16 which required to be attached in form SPICe.
  • After receiving Central Government approval i.e approval of form INC-12, one may go ahead with filing of form SPICe 32.


No Dividend
No dividend is offered to members of the company.

Any kind of Profit or incomes of the Company is applied only for the promotion of the objects of the Company.

Special License
Also called Licensed Company, unlike the formation of any other company, it is essential for Section 8 Company to get Special License from Central Government. Every requirement to form a company must be followed but in case of Section 8 Company, a Special License is required for its incorporation by submitting an application to ROC. Rule 19 of the Companies (Incorporation) Rules, 2014 provides for the issue of the License for the Section 8 Company under a procedure to be followed.

Section 8 Company enjoy all the privileges and subject to all the obligations of the Limited Company.

Incorporation under Form INC-29
The Section 8 Company cannot be incorporated by the Form INC-29.

Use of Suffix
Section 8 Company cannot use suffix ‘Pvt Ltd’ or ‘Ltd’ with its name.

Not a Small Company
A Section 8 Company shall not be treated as a Small Company.

Power of Registrar of Companies
The Central Government’s power is delegated to the ROC, which has jurisdiction over the area where the Registered office of the company is to be situated. Hence, the application for registering the company is to be made to the ROC.

Firm as the member of Non-Profit Company
A partnership firm can become a member of the non-profit company registered under the Section 8. Such membership of the firm shall cease upon dissolution of the firm.

Shareholders and Directors
The Company must have at least 2 shareholders and 2 Directors. The Directors and the shareholders can be the same persons.

Share Capital
No minimum share capital required. The necessary funds are brought in the form of donations, subscriptions from members or the general public.

Limited Liability
One of the benefits of Section 8 Company is its Limited Liability. In simple words, in case any liability rises, the members of the company are not personally affected; members are liable for unpaid shares held by them and not more than that.

Greater Flexibility
A Section 8 company is not required to perform as many legal formalities as a public company. It tends to enjoy the special exemptions and privileges under the company law.

Separate Legal Entity
The most prominent quality of a Section 8 Company is its Separate Legal Identity. In a Section 8 Company, the company and its members have completely distinctive identities.


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