Overview
Section 8 Companies are registered under the Companies Act and are treated as limited companies. A license is also required from the Central Government under section 8 of the Companies Act. With this license, these companies can remove Public/Private Limited from their name. The company also becomes eligible for certain exemptions from the provisions of law and avail the benefit of concessions in the fee. The name of the Section 8 Company shall include the words Foundation, Forum, Association, Federation, Chambers, Confederation, council, Electoral trust etc.
If the proposed Section 8 Company has been registered as a private limited then a minimum of 2 directors are required. However, if it is a “Public Limited Section 8 Company” then at least 3 directors are needed. There is no requirement of minimum paid-up capital in case of a Section 8 company.