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Can one person register a Section 8 company?

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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