# Effect of Registration & Section 8 Companies
## Effect of Registration (Section 9)
From the date of incorporation mentioned in the Certificate of Incorporation, the company becomes a body corporate and acquires:
1. Separate legal personality — distinct from its members
2. Perpetual succession — the company continues to exist regardless of changes in membership (death, insolvency, etc.)
3. Power to acquire, hold and dispose of property — in its own name
4. Capacity to contract — can enter into contracts
5. Right to sue and be sued — in its own name
6. Common seal (optional, on Board's discretion)
## Section 8 Companies — Not-for-Profit
A Section 8 company is one whose:
### Conditions
(a) Object is to promote — Commerce, Art, Science, Sports, Education, Research, Social Welfare, Religion, Charity, Protection of Environment, etc.
(b) Intends to apply its profits (or other income) in promoting these main objects.
(c) Prohibits payment of dividend to its members.
A license is granted by the Central Government (powers delegated to ROC) under Section 8.
## Grounds for Revocation of Section 8 License
The Central Government may revoke the license if the company:
1. Contravenes the requirements of Section 8
2. Contravenes the conditions subject to which the license was issued
3. Is conducting its affairs fraudulently
4. Conducts affairs in a manner prejudicial to public interest
On revocation, the company may be ordered to convert into a normal company or be wound up.