The penalty for failing to file annual returns is Rs 50,000, with a maximum fine of Rs 5 lakh.

A Section 8 Company must put together additional conditions under the Foreign Contribution and Regulation Act, 2010, in order to accept any funds, contributions, or gifts from abroad or from outside India.

Yes, under Section 8(1) of the Companies Act of 2013, any individual or group of individuals may register as a Section 8 Company by fulfilling the requirements outlined in that section.

The prescription under section 149(1) of Companies Act 2013 as to having Minimum of three directors for public limited company and two directors for private limited company and maximum of fifteen directors is not applicable to section 8 company and thus there is no prescription with respect to minimum or maximum directors in a section 8 Company. However, second proviso to section 149(1) requires a woman director in prescribed class of companies. Also section 149(3) requires every company to have a resident director.

It should have a minimum of two directors for a private limited company, three directors for a public limited company, and a maximum of fifteen directors, according to section 149(1) of the Companies Act of 2013, but it is not applicable to section 8 companies, so there is no prescription regarding the minimum and maximum number of directors in a section 8 company.

Yes. Section 8(1) of the Companies Act, 2013 allows person or association of persons to be registered as a Section 8 Company on fulfilment of certain conditions and procedure as prescribed therein.

The term “person” has not been defined in the Companies Act, 2013. Section 2(41) of the General Clauses Act, 1897 provides that “person” shall include any Company, or association or body of individuals, whether incorporated or not. Accordingly, a Society registered under the Societies Registration Act, 1860 is a person

Therefore, Society can be registered/converted as a Section 8 Company.

Stamp duty on issue of share certificates is governed by Indian Stamp Act, 1899 as adapted by respective state or stamp act of respective state, as the case may be. No relaxation of special rate of stamp duty has been provided by any of the state in respect of stamp duty payable on issue of share certificates by Section 8 Company.

There are special requirements to be complied with under the Foreign Contribution and Regulation Act, 2010 before a Section 8 Company can receive any contributions or donations from overseas/outside India from non-residents. The provisions of the said Act are in addition to the provisions under the Companies Act.

Yes, a NRI or Foreign National can be a Director in a Section 8 Company after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be a Resident India.

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.