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.
  
• Profit cannot be the main motive of the organization.
  
• Activities must contribute to public benefit rather than private gain.
  

2. Utilization of Profits

• Any income or profit must be applied solely towards the company’s objectives.
  
• Profit distribution to members, shareholders, or directors is prohibited.
  
• Funds must be reinvested in programs or operations furthering the cause.
  
• Financial practices must reflect the non-profit nature of the entity.
  
• Violation of profit restrictions may lead to cancellation of the company’s license.
  

3. Minimum Number of Members

• At least two members are required to form a private Section 8 company.
  
• At least seven members are required to form a public Section 8 company.
  
• There is no upper limit on the number of members.
  
• Members must be individuals or entities capable of entering into legal contracts.
  
• Directors and members can be the same individuals.
  

4. Indian Residency and Director Requirements

• At least one director must be an Indian resident (staying in India ≥182 days/year).
  
• All directors must have a valid Director Identification Number (DIN).
  
• Digital Signature Certificates (DSC) are mandatory for e-filing.
  
• Directors must not be disqualified under the Companies Act or convicted of fraud.
  
• Details must be submitted through the SPICe+ form during incorporation.
  

5. Compliance with Legal and Document Requirements

• The company must comply with procedural requirements under the Companies Act, 2013.
  
• Mandatory documents include PAN, Aadhaar, utility bill, office address proof, and NOC.
  
• Drafts of the MOA and AOA must reflect the non-profit objectives.
  
• Declarations and affidavits from promoters confirming compliance are required.
  
• All documentation must be submitted through the Ministry of Corporate Affairs portal.