{"id":1913,"date":"2018-07-10T06:34:30","date_gmt":"2018-07-10T06:34:30","guid":{"rendered":"https:\/\/companyregistrationonline.in\/?p=1913"},"modified":"2025-06-27T06:04:50","modified_gmt":"2025-06-27T06:04:50","slug":"faq-section-8-company-formation","status":"publish","type":"post","link":"https:\/\/companyregistrationonline.in\/blog\/faq-section-8-company-formation\/","title":{"rendered":"Frequently Asked Questions On Section 8 Company Formation"},"content":{"rendered":"

In this article, we have compiled a list of questions on section 8 company registration<\/a><\/strong> mostly based on queries raised by our clients and answers from our experts.<\/p>\n

FAQ ON SECTION-8 COMPANY FORMATION<\/strong><\/h2>\n

QI. Who can apply for registration of a Section 8 company?<\/strong><\/p>\n

Ans.\u00a0<\/strong>Any person or Number of associated\u00a0persons intending to register a limited liability company for objects specified below can opt to apply for Company Registration<\/a> or Company Formation under Section 8<\/a><\/strong>. The following have to be proved to the satisfaction of the Central Government that:<\/p>\n

(a) Promotion of commerce, art, science, sports, education, research, and social issues like social welfare, religion, charity, protection of the environment, or any other object is also included.<\/p>\n

(b) The company after incorporation<\/a> intends to apply its profits, if any, or other income in promoting such objects only;<\/p>\n

(c) Payment of Dividend to the members should be prohibited by the company.<\/p>\n

Q2. What is the procedure for the incorporation of Section 8 company?<\/strong><\/p>\n

Ans.<\/strong>\u00a0\u00a0To incorporate a Section 8 Company<\/a><\/strong>, an application shall be written to the Registrar of Companies in Form no. INC.12<\/a><\/strong>, which shall be accompanied, inter alia, by the following documents:<\/p>\n

    \n
  1. Draft of Memorandum of Association (MOA) and Articles of association (AOA) of the Company in the prescribed format (Form no. INC \u2013 13) with the photographs of subscribers are affixed.<\/li>\n
  2. A Declaration is to be attached in Form no. INC-14 on the stamp paper, duly notarized by an Advocate, a Chartered Accountant, Cost Accountant or Company Secretary in practice, that the draft memorandum and articles of association have been drawn up in conformity with the provisions and rules made under Section 8 and all the requirements are fulfilled.<\/li>\n
  3. An estimation of the annual income and expenditure of the company for the next three years, the sources of the income and the objects of the expenditure has to be specified.<\/li>\n
  4. A declaration (in Form no. INC-15) on stamp paper duly notarized by each of the persons making the application.<\/li>\n
  5. Form no. INC-9 form each subscriber and first directors, on appropriate stamp paper of the State and duly notarized.<\/li>\n<\/ol>\n

    Q3. Can a company with unlimited liability be registered as a Section 8 Company?<\/strong><\/p>\n

    Ans.\u00a0<\/strong>No. Rule 20(1) of the Companies (Incorporation) Rules, 2014 \u00a0provides that only a limited company registered under this Act or any previous company law shall make an application to the Registrar for the issue of license. Therefore, a company with unlimited liabilities cannot be registered as a Section 8 Company<\/a><\/strong>.<\/p>\n

    Q4. Is it mandatory that the name of Section 8 company shall include words like Foundation, Forum, Association, Federation, etc.?<\/strong><\/p>\n

    Ans.\u00a0<\/strong>Yes. As per rule 8(7) of the Companies (Incorporation) Rules, 2014, for the Companies under Section 8 of the Act, the name shall include the foundation of the word, Forum, Association, Federation, and the like, etc.<\/p>\n

    Q5. Whether a Foreign Company can be registered under Section 8 company in India?<\/strong><\/p>\n

    Ans. \u00a0<\/strong>Under Section 2(42) of the Companies Act, 2013 the term \u201cForeign Company\u201d is defined as any company or body corporate incorporated outside India which\u2013<\/p>\n