The Companies Act definies a Section 8 company as one whose objectives are to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.
The Companies Act definies a Section 8 company as one whose objectives are to promote fields of arts, commerce, science, research, education, sports, charity, social welfare, religion, environment protection, or other similar objectives.
1. Charitable Objectives: Section 8 Companies Do Not Aim To Make Profits. Their Objectives Are Purely Charitable In Nature. They Aim To Further Causes Like Science, Culture, Research, Sports, Religion, Etc.
2. Government License: Such Companies Can Function Only If They Have The Central Government's License. The Government Can Revoke This License As Well.
3. Privileges: Since These Companies Posessess Charitable Objectives, The Companies Act Has Accorded Several Benefits And Exemtions To Them.
4. Firms As Members: Apart From Individuals And Associations Of Persons, Section 8 Also Allows Firms To Be Members Of These Companies.
Apart from individuals and associations of persons, Section 8 also allows firms to be members of these companies.
Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital.
Members of these companies can only have limited liability. Their liabilities cannot be unlimited in any case.
Such companies can function only if they have the Central Government’s license. The Government can revoke this license as well.
Since these companies possess charitable objectives, the Companies Act has accorded several benefits and exemptions to them.
Section 8 companies do not aim to make profits. Their objectives are purely charitable in nature. They aim to further causes like science, culture, research, sports, religion, etc.