The objectives have to be confirmed to the satisfaction of the Central Government. Eligibility to Apply for Section 8 CompanyĪn individual or an association of individuals are eligible to be registered as Section 8 Company if it holds below-mentioned intentions or objectives. However, the title of “Section 8” and “Limited” can not be interchanged.
Its manner of carrying out the operation is similar to any other limited company and even the right & duties of a limited company and NPO are alike.
Read Also: Download Trial & Start ROC/MCA Return Filing by Gen CompLaw Software Company Already Have the License Number.Besides, strict legal action will be taken against all the members of the company if the objectives laid down by the company proves to be bogus. Such companies obtain an incorporation certificate from the central government and are liable to adhere to the rules specified by the government.Īccording to the rules, failure to comply with the responsibilities stated by the Central Government may lead to the winding up of the company on the orders of government. The income of NPO can not be used for paying out dividends to the company’s members and has to be for the promotion of charitable objectives. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for promoting these objectives. A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e.
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