1. Legal Eligibility of Foreign Nationals Yes, a foreign national can be appointed as a director of a Section 8 company in India. The Companies Act, 2013, does not prohibit foreign nationals from holding directorships. They can serve in both executive and...

1. Minimum Number of Directors Required A Section 8 company must have a minimum of two directors if it is incorporated as a private limited company. If incorporated as a public limited company, it must have at least three directors. These minimums are mandated under...

1. Charitable or Non-Profit Objective The company must be formed to promote charitable or social causes. Permitted objectives include education, science, arts, environment, sports, religion, or welfare. The purpose must align with Section 8 of the Companies Act, 2013....

1. No Statutory Minimum Capital Requirement Section 8 companies are exempt from any statutory minimum capital requirement. The Companies Act, 2013, does not mandate a fixed paid-up capital for such companies. This provision enables easy formation and encourages more...

1. Primary Regulatory Body: Ministry of Corporate Affairs (MCA) The Ministry of Corporate Affairs (MCA) is the central authority regulating Section 8 companies. It operates under the Government of India and administers the Companies Act, 2013. MCA grants licenses,...

1. Governing Statute: Companies Act, 2013 Section 8 companies are governed by the Companies Act, 2013. Specifically, Section 8 of the Act outlines provisions for incorporation and functioning. The Act applies to both private and public companies formed for non-profit...

1. Legal Recognition and Trustworthiness Section 8 companies are officially recognized under the Companies Act, 2013. Legal status enhances public and institutional trust in operations. They enjoy higher credibility compared to unregistered entities. This legal...

1. Legal Position on Profit-Making Section 8 companies are not prohibited from earning profits. They can generate income through activities aligned with their objectives. The Companies Act, 2013 permits such companies to earn surpluses. These surpluses are a result of...

1. Objective and Purpose A Section 8 company is formed for promoting charitable, social, or non-profit objectives. Regular companies are primarily established for profit-making and commercial purposes. The profits of Section 8 companies must be reinvested into their...

1. Promotion of Commerce and Trade Encouraging entrepreneurship, fair trade practices, and small business development. Supporting trade associations and business innovation platforms. Facilitating skill development and economic empowerment of marginalized groups. 2....