1. Legal Recognition under the Companies Act To be eligible for receiving Corporate Social Responsibility (CSR) funds, a Section 8 company must be registered under Section 8 of the Companies Act, 2013. It must have a clearly stated objective in its Memorandum of...

1. Legal Right to Hire Employees Yes, a Section 8 company can hire employees to carry out its administrative, operational, and program-related functions. The Companies Act, 2013, does not restrict Section 8 companies from employing staff, provided employment serves...

1. Eligibility to Apply for Government Grants Yes, a Section 8 company is eligible to apply for and receive government grants in India. Its non-profit status makes it a preferred legal structure for implementing welfare, education, health, and development programs....

1. No General Legal Prohibition under the Companies Act The Companies Act, 2013, does not explicitly prohibit a government employee from being appointed as a director of a Section 8 company. However, this does not grant automatic eligibility; other service rules and...

1. Permissibility Depends on Purpose and Structure A Section 8 company can enter into franchise agreements if the purpose is to expand its charitable or non-profit services, such as education, training, or healthcare. The franchise model must be structured in a...

1. Permissibility under Law A Section 8 company can participate in a joint venture, provided the purpose of the venture is strictly charitable or aligned with its non-profit objectives. The joint venture must not involve profit distribution to the Section 8 company or...

1. Government Platform Availability Yes, Section 8 companies can be registered entirely through the official online platform provided by the Ministry of Corporate Affairs (MCA). The MCA portal is the primary and authorized platform for the incorporation of all...

1. Permissibility of Objective Change Yes, a Section 8 company can change its objectives after incorporation. However, the new objectives must remain within the scope of charitable or non-profit purposes as defined under Section 8 of the Companies Act, 2013. The...

1. Right to Participate in Governance Members of a Section 8 company have the right to participate in general meetings of the company. They can vote on key resolutions, including amendments to the Memorandum and Articles of Association. They may propose changes, ask...

1. Voluntary or Compulsory Winding Up A Section 8 company can be wound up voluntarily by its members or compulsorily by an order from the Tribunal. Voluntary winding up occurs when members pass a special resolution to dissolve the company. Compulsory winding up may be...