SHAREHOLDER: As compared to private limited and public limited company section-8 Company also have shareholders. The minimum limit of shareholders depends upon the category in which the company is registered. If the company is registered in the form of the private limited company, then the minimum shareholder shall be 2 and maximum shall be 200 but if the company registered under the category of the public limited company the minimum limit shall be 7 and maximum no limit. However, the shareholders of the company shall not take part and distribute the profit earned by the company.

DIRECTORS: The provisions for the appointment of the director are same as applicable under the private limited company and public limited company. If it is formed as a private limited company, then a minimum of two directors are required for the registration of the company. If it is registered in the form of a public limited company category, then a minimum of three directors is necessary at the time of registration. However, the maximum limit of the director of the company can be 15.

NAME: It is mandatory to use the word “private limited” or “limited” at the end of the name of the private limited company and public limited company, but the section-8 company has an exception for using such words. Section-8 Company can use the following words at the end of the name of the company:

Foundation

Association

Society

Chamber

Federation

Charities; and many other

For example Reliance Foundation, TATA Foundation, etc.

REGISTERED OFFICE: Every company needs a registered office at the time of incorporation of the company. The registered office is mandatory for every company as all the documents and notices shall be sent to that address, and this address shall be mentioned in every document, letterhead, deeds, all other documents of the company

CAPITAL: Now there is no requirement for having the minimum money in the company. The company can use any amount as its capital amount, but the paid-up share capital of the company shall be less than the authorized capital.