Features
| Principal Legislation | Companies Act, 2013 | A Section 8 Company is governed by the provisions of the Companies Act, 2013. |
| Separate Legal Entity | Yes | Section 8 companies are companies having separate legal entity from its members. |
| Registration | Mandatory | Registration is mandatory and can start functioning only after obtaining a License from the Government. |
| Number of Members | 2 Shareholders | There must be Minimum of two shareholders |
| Liability | Limited | The Liability is Limited to the shares subscribed. |
| Transfer of Shares | ||
| Compliance | Moderate | Section 8 companies have been exempted from a lot of compliance requirements. However, there are some common post incorporation compliance requirements which require adherence. |
| Director | 2 | There 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. |