law: Companies Act, 2013 
  8.
  
  Formation
  
  of companies with charitable objects, etc.
  1.      Where it is proved to
  
  the satisfaction of the Central Government that a person or an association of
  
  persons proposed to be registered under this Act as a limited company—
  a.     
  
    has
  
  in its objects the promotion of commerce, art, science, sports, education,
  
  research, social welfare, religion, charity, protection of environment or any
  
  such other object;
  b.    
  
    intends
  
  to apply its profits, if any, or other income in promoting its objects; and
  c.     
  
    intends
  
  to prohibit the payment of any dividend to its members, the Central Government
  
  may, by licence issued in such manner as may be prescribed, and on such
  
  conditions as it deems fit, allow that person or association of persons to be
  
  registered as a limited company under this section without the addition to its
  
  name of the word “Limited”, or as the case may be, the words “Private Limited”
  
  , and thereupon the Registrar shall, on application, in the prescribed form,
  
  register such person or association of persons as a company under this section.
  1.     
  2.      The company
  
  registered under this section shall enjoy all the privileges and be subject to
  
  all the obligations of limited companies.
  3.      A firm may be a
  
  member of the company registered under this section.
  4.     
               
  
   i.        
  
    A
  
  company registered under this section shall not alter the provisions of its
  
  memorandum or articles except with the previous approval of the Central
  
  Government.
              
  
   ii.        
  
    A
  
  company registered under this section may convert itself into company of any
  
  other kind only after complying with such conditions as may be prescribed.
  1.     
  2.     
  3.     
  4.     
  5.      Where it is proved to
  
  the satisfaction of the Central Government that a limited company registered
  
  under this Act or under any previous company law has been formed with any of
  
  the objects specified in clause (a ) of sub-section (1 ) and with
  
  the restrictions and prohibitions as mentioned respectively in clauses (b )
  
  and (c ) of that sub-section, it may, by licence, allow the company to be
  
  registered under this section subject to such conditions as the Central
  
  Government deems fit and to change its name by omitting the word “Limited”, or
  
  as the case may be, the words “Private Limited” from its name and thereupon the
  
  Registrar shall, on application, in the prescribed form, register such company
  
  under this section and all the provisions of this section shall apply to that
  
  company.
  6.      The Central
  
  Government may, by order, revoke the licence granted to a company registered
  
  under this section if the company contravenes any of the requirements of this
  
  section or any of the conditions subject to which a licence is issued or the
  
  affairs of the company are conducted fraudulently or in a manner violative of
  
  the objects of the company or prejudicial to public interest, and without
  
  prejudice to any other action against the company under this Act, direct the
  
  company to convert its status and change its name to add the word “Limited” or
  
  the words “Private Limited”, as the case may be, to its name and thereupon the
  
  Registrar shall, without prejudice to any action that may be taken under sub-section
  
  (7 ), on application, in the prescribed form, register the company
  
  accordingly:
  Provided
  
  that no such order shall be made unless the company is given a reasonable
  
  opportunity of being heard:
  Provided
  
  further that a copy of every such order shall be given to the Registrar.
  1.     
  2.     
  3.     
  4.     
  5.     
  6.     
  7.      Where a licence is
  
  revoked under sub-section (6 ), the Central Government may, by order, if
  
  it is satisfied that it is essential in the public interest, direct that the
  
  company be wound up under this Act or amalgamated with another company
  
  registered under this section:
  Provided
  
  that no such order shall be made unless the company is given a reasonable
  
  opportunity of being heard.
  8.      Where a licence is
  
  revoked under sub-section (6 ) and where the Central Government is
  
  satisfied that it is essential in the public interest that the company
  
  registered under this section should be amalgamated with another company
  
  registered under this section and having similar objects, then, notwithstanding
  
  anything to the contrary contained in this Act, the Central Government may, by
  
  order, provide for such amalgamation to form a single company with such
  
  constitution, properties, powers, rights, interest, authorities and privileges
  
  and with such liabilities, duties and obligations as may be specified in the
  
  order.
  9.      If on the winding up
  
  or dissolution of a company registered under this section, there remains, after
  
  the satisfaction of its debts and liabilities, any asset, they may be
  
  transferred to another company registered under this section and having similar
  
  objects, subject to such conditions as the Tribunal may impose, or may be sold
  
  and proceeds thereof credited to the Rehabilitation and Insolvency Fund formed
  
  under section 269.
  10.   A company registered
  
  under this section shall amalgamate only with another company registered under
  
  this section and having similar objects.
  11.   If a company makes
  
  any default in complying with any of the requirements laid down in this
  
  section, the company shall, without prejudice to any other action under the
  
  provisions of this section, be punishable with fine which shall not be less
  
  than ten lakh rupees but which may extend to one crore rupees and the directors
  
  and every officer of the company who is in default shall be punishable with
  
  imprisonment for a term which may extend to three years or with fine which
  
  shall not be less than twenty-five thousand rupees but which may extend to
  
  twenty-five lakh rupees, or with both:
  Provided
  
  that when it is proved that the affairs of the company were conducted
  
  fraudulently, every officer in default shall be liable for action under section
  
  447.