1. Permitted Scope of International Operations Yes, a Section 8 company can legally conduct international operations, provided such activities align with its charitable or non-profit objectives. International activities may include collaborations, research, training,...
Section 8 Company Registration Articles
Can LLPs or other companies be members of a Section 8 company?
1. Companies and LLPs as Members – Permitted by Law Yes, Limited Liability Partnerships (LLPs) and other incorporated companies can be members of a Section 8 company. The Companies Act, 2013, allows both individuals and legal entities to subscribe to the Memorandum of...
What are the restrictions on political involvement by a Section 8 company?
1. Prohibition on Political Activity Section 8 companies are strictly prohibited from engaging in political activities. Their primary objective must be charitable or non-profit, as defined under Section 8 of the Companies Act, 2013. They cannot promote or support any...
Can a Section 8 company have branches across India?
1. Permitted to Operate Nationally Yes, a Section 8 company is legally allowed to open branches or offices anywhere in India. There is no restriction under the Companies Act, 2013, on geographical expansion within the country. Branches can support outreach, program...
Can a Section 8 company promote social entrepreneurship?
1. Alignment with Charitable Objectives Yes, a Section 8 company can promote social entrepreneurship if it aligns with its charitable or socially beneficial objectives. Social entrepreneurship involves using innovative and sustainable methods to solve social issues....
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...
Can a Section 8 company be incorporated online?
1. Online Incorporation is Fully Permitted A Section 8 company can be completely incorporated through digital means. The Ministry of Corporate Affairs allows electronic submission of all necessary forms. There is no need for physical submission or in-person visits to...
What financial statements must a Section 8 company prepare?
1. Balance Sheet A Balance Sheet provides the financial position of the company as of the last day of the financial year. It includes assets, liabilities, capital funds, and reserves, adjusted for grants, donations, or unused funds. For Section 8 companies, special...
What are the annual compliance requirements of a Section 8 company?
1. Annual Return Filing with Registrar of Companies (ROC) Section 8 companies must file Form MGT-7 for the Annual Return within 60 days of the Annual General Meeting (AGM). This includes information about shareholding, board composition, meetings, and more. The AGM...
Can a Section 8 company pay remuneration to its directors?
1. General Rule: No Profit Distribution Allowed A Section 8 company is prohibited from distributing profits to its members or directors. The company must apply all its income toward promoting its stated charitable or non-profit objectives. The focus is on service, not...