Principal LegislationCompanies Act, 2013A Section 8 Company is governed by the provisions of the Companies Act, 2013.
Separate Legal EntityYesSection 8 companies are companies having separate legal entity from its members.
RegistrationMandatoryRegistration is mandatory and can start functioning only after obtaining a License from the Government.
Number of Members2 ShareholdersThere must be Minimum of two shareholders
LiabilityLimitedThe Liability is Limited to the shares subscribed.
Transfer of Shares
ComplianceModerateSection 8 companies have been exempted from a lot of compliance requirements. However, there are some common post incorporation compliance requirements which require adherence.
Director2There must be Minimum of two Directors (Directors and shareholders can be the same person).
At least one of the Director shall be the  resident in India.