Sewa Foundation is a registered NGO for promoting Indian Culture. It organizes various cultural programmes in India as well as outside India. The founder members are retired from armed force service, Indian Army. Most of
CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · December 2025
Sewa Foundation is a registered NGO for promoting Indian Culture. It organizes various cultural programmes in India as well as outside India. The founder members are retired from armed force service, Indian Army. Most of the members desired that the Foundation may be converted into a section 8 Company under the Companies Act, 2013 with 5 members as promoter. Further, they don't want to affix the word 'Limited' or 'Private Limited' after the proposed name 'Live with Culture'. They also desired to expand the object of the company. In view of the above, answer the following: (1) Whether, proposed Company can be incorporated with affixing the word 'Limited' or 'Private Limited' as case may be ? (2) What are the other objectives that can be included in the object clause of the proposed Company ?
Answer & Explanation:
(1) Under Section 8(1) of the Companies Act, 2013, a company formed for charitable or not-for-profit objectives (such as promotion of culture) may be registered as a Section 8 Company. Such companies are exempt from using the suffix "Limited" or "Private Limited" in their name. Thus, the proposed company in the question can be incorporated without affixing "Limited" or "Private Limited" in its name, subject to approval under Section 8. (2) Section 8 company is a company established for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object', provided the profits, if any, or other income is applied for promoting only the objects of the company and no dividend is paid to its members. Accordingly, the proposed Company can include any of the above objectives in its object clause
Topics: Setting Up of Business