Question

Name a company which need not have share capital.

Answer 1

A company which need not have share capital is a company formed with the permission of the central government when it is established to promote art, religion, science, culture, charity, or any other useful object. Such a company is allowed to be registered without inserting the words “public limited” or “private limited” after its name. The profits or other incomes of this company, if any, are to be used solely to promote its basic objectives, and no dividend shall be declared to its members. Therefore, such a company may be formed without share capital.