Table of Contents
- 1 How many members are required to form a Section 8 company?
- 2 What number of members is required for incorporation of a company?
- 3 How do I incorporate my business into Section 8?
- 4 Is GST applicable to Section 8 company?
- 5 Who are members of a company?
- 6 How many members can a private company have?
- 7 What is the minimum share capital required for Section 8 company?
- 8 What are the annual compliances of a section 8 company?
How many members are required to form a Section 8 company?
Section 8 Company Incorporation Eligibility Two or more persons who will act as Directors or shareholders should fulfil all the compliances and requirements of the Section 8 company incorporation under the Act. There must be at least one director who should be a resident of India in the Section 8 company.
What number of members is required for incorporation of a company?
In a Private Company, a minimum of 2 Directors and 2 Members are required whereas in a Public Company, a minimum of 3 Directors and a minimum of 7 members. A single person could not incorporate a Company previously. One Person Company (OPC) is a company incorporated by a single person.
Who are members of Section 8 company?
Yes, under the Companies Act, 2013, a Partnership firm or an LLP can become the member of Section 8 Company. The provisions of respective Acts need to be complied with by the partnership firm or LLP as the case may be.
How many members does a company have?
Here is a list of features that differentiate a public company from a private limited company:
| Features | Public Limited Company | Private Limited Company |
|---|---|---|
| Minimum members | 7 | 2 |
| Minimum directors | 3 | 2 |
| Maximum members | Unlimited | 200 |
| Minimum capital | 5,00,000 | 1,00,000 |
How do I incorporate my business into Section 8?
Documents Required for Registering a Section 8 Company
- Director Identification Number (DIN)
- Digital Signature Certificate.
- Memorandum of Association.
- Articles of Association.
- Passport size Photographs.
- Members Id Proof such as Aadhar Card, Passport, Voter ID.
- Details of Director.
- Address Proof.
Is GST applicable to Section 8 company?
While the definition of ‘taxable person under GST’ includes a trust, society, or Section 8 company, as long as these entities are not engaged in economic activity including trade and commerce, they cannot be treated as a taxable person under GST.
Can Section 8 company be formed without share capital?
No minimum share capital: Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital. Limited liability: Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case.
How many members can a company have?
In case of private companies, the maximum limit has been increased by the new Companies Act, 2013 from 50 to 200. There is however no maximum limit on the no. of members in a public company. The minimum number of members in case of a public company is seven and in case of a private company is 2.
Who are members of a company?
Difference between Member & Shareholder
| MATTER | Member |
|---|---|
| Meaning | A person whose name is entered in the register of members of a company. |
| Definintion | Companies Act, 2013 defines ‘Member’ under section 2(55) |
| Share Warranges | The holder of the share warrant is not a member. |
| Company | Every company must have a minimum number of members. |
How many members can a private company have?
Minimum 2 and maximum 200 members: A private company can have a minimum of just two members (but just one is enough if it a One Person Company), and a maximum of up to 200 members. Transferability of shares restricted: Private companies cannot freely transfer their shares to the public like public companies.
Is GST registration required for Section 8 company?
As providers of goods and services While the definition of ‘taxable person under GST’ includes a trust, society, or Section 8 company, as long as these entities are not engaged in economic activity including trade and commerce, they cannot be treated as a taxable person under GST.
How many directors are required to incorporate a section 8 company?
Minimum two directors and two members are required to incorporate it. No minimum share capital is required for section 8 company registration. Section 8 companies are required to be incorporated with non-profit objectives. Any profit earned through a section 8 company will not be distributed among its members.
Minimum Requirement A Section 8 Company is a company to be incorporated by the Ministry of Corporate Affairs. Minimum two directors and two members are required to incorporate it. No minimum share capital is required for section 8 company registration.
What are the annual compliances of a section 8 company?
A Section 8 Company has to comply with the annual compliances like other companies, and in the case of non-compliance, the company will be treated as a dormant company and it can be struck off from the register. Here are the steps required to incorporate a Section 8 Company:
Can a section 8 company use the word ‘Ltd’ in its name?
It is not required for section 8 company to use the words ‘LTD’ or ‘PVT LTD’ in their name. There is no such requirement regarding the minimum capital with effect from June 5, 2015, under this act. The list of the following documents is required for incorporation of section 8 company: