A Section 8 Company is registered as a Non-Profit Organization (NPO), focusing on promoting arts, commerce, education, charity, and other social welfare objectives. It cannot distribute profits among its members and must utilize its income for promoting its objectives.
Such companies obtain an incorporation certificate from the central government and adhere to specific rules and regulations.
The main purpose of establishing a Section 8 company is to promote non-profit objectives such as arts, commerce, education, charity, social welfare, etc. It requires a license from the Central Government under the Companies Act, 2013.
Is Section 8 a small business company?
Section 8 companies cannot be treated as small companies as per Section 2(85) proviso (B).
Is it possible for LLP or a Partnership firm to be a member of Section 8 Company?
Yes, LLP or Partnership firm can be a member of a Section 8 Company under the Companies Act, 2013.