Aniket wishes to incorporate a company under section 8 of the Companies Act, 2013 for the purpose of promotion of education, research and social welfare. He approaches you to seek your advice on eligibility to apply for

Eligibility to apply for Section 8 Company License A person or an association of persons proposed to be registered under the Companies Act, 2013, as a limited company is eligible to be registered as a Section 8 Company if it has the below-mentioned objectives, and the same should be up to the satisfaction of the Central Government: When the company intends to promote science, commerce, education, art, sports, research, religion, charity, social welfare, protection of the environment, or alike other objectives; When the company intends to invest all the profits (if any) or any other income generated after incorporation in the promotion of such objects only; When the company does not intend to pay any dividend to its members; Any failure to meet the prescribed norms formulated by the Central Government may lead to the revocation of the license of the Company on the orders of the Central Government. As Aniket wishes to incorporate a Section 8 company for the purpose of promotion of education, research, and social welfare, he is advised to incorporate such a Section 8 company in compliance with the above-stated eligibility criteria.