1. Minimum Member Requirement
- A Section 8 company must have at least two members for incorporation as a private limited company.
- If it is to be registered as a public limited Section 8 company, it must have at least seven members.
- A single person cannot register a Section 8 company on their own.
- This is because the Companies Act, 2013, does not allow one-person companies to be formed as Section 8 entities.
- The requirement ensures collective governance and accountability.
2. Role of Subscribers and Directors
- The minimum number of subscribers to the Memorandum of Association must be two or more.
- At least two directors are required for a private Section 8 company, and three for a public one.
- These individuals may also be the same as the members, but they cannot be a single person.
- All subscribers must agree to the company’s charitable objectives.
- Each subscriber must digitally sign the incorporation documents.
3. Legal Framework Restriction
- The Companies Act explicitly excludes Section 8 companies from being incorporated as One Person Companies (OPCs).
- Section 8 companies are formed for promoting welfare and public interest, requiring more than one stakeholder.
- This restriction supports better oversight, transparency, and shared responsibility.
- Legal documentation and licensing processes also require multiple signatories.
- This ensures legitimacy and adherence to non-profit principles.
4. Alternatives for Individuals
- An individual interested in charitable activities can collaborate with at least one other person to register a Section 8 company.
- Alternatively, the individual can explore forming a trust or a society, which may have simpler structures.
- However, Section 8 companies offer better credibility and regulatory benefits.
- Collaborating with like-minded professionals or stakeholders is essential for formation.
- Professional support can help structure the organization legally and effectively.
5. Compliance with Incorporation Rules
- During registration, the SPICe+ form will not proceed unless the minimum member requirement is met.
- Forms must be digitally signed by multiple applicants and directors.
- Supporting declarations, such as INC-15 and MOA/AOA, require at least two signatories.
- The ROC and Regional Director will not approve a single-member application.
- Full compliance ensures smooth licensing and future operational legitimacy.
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