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MEANING OF SECTION 8 COMPANIES

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked almost 3 years ago

MEANING OF SECTION 8 COMPANIES

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

Dear Friend, --The section 8 company of the companies act 2013 were called before as section 25 company under companies act 1956. --These companies are formed for Non Profit motive ( Charitable Purposes) and the profits accrued from its Business / art / skill activity is used to fulfill and promote its main objects. These companies are prohibited to pay any of the dividends to its members. --Section 8 Company or a Non-Profit organization (NPO) is a Company established for promoting commerce, art, science, religion, charity or any other useful 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. --An NPO/NGO can be formed for promotion of any useful object like sports, education, research activities etc. The term No Profit does not mean that the Company cannot generate profit or income, but it essentially means applying the income for further promotion of the object and not for distributing it to the promoters. It means that the Company can earn profits but the promoters cannot be benefited out of those profits. **--Key Benefits:** Many privileges and exemptions under Company Law. Exemption from requirement of Minimum Paid-up capital. Exemption of Stamp duty for registration. Non-application of Companies Auditor�s Report Order (CARO) 2003. Registered partnership firm can be a member in its own capacity. Tax deductions to the donors of the Company u/s. 80G of the Income Tax Act. **Key Requirements**: Minimum 2 Shareholders (for Private Ltd. Co.) and 7 Shareholders (for Public Ltd. Co.) Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.) The directors and shareholders can be same person DIN (Director Identification Number) for all the Directors DSC (Digital Signature Certificate) for two of the Directors

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

The section 8 company were called before as section 25 company under companies act 1956. These companies are formed for Non Profit motive ( Charitable Purposes) and the profits accrued from its Business / art / skill activity is used to fulfill and promote its main objects. These companies are prohibited to pay any of the dividends to its members.

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Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered almost 3 years ago

Hiii friend,,,,, **Section 8 Company** The section 8 company were called before as section 25 company under companies act 1956. These companies are formed for Non Profit motive ( Charitable Purposes) and the profits accrued from its Business / art / skill activity is used to fulfill and promote its main objects. These companies are prohibited to pay any of the dividends to its members. These companies are formed to fulfill its objects like Commerce, art, science, education, social welfare, religion, charity, protection of environment etc. These companies enjoys special exemptions from Govt. Regards,

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered almost 3 years ago

**MEANING OF SECTION 8 COMPANIES** Hi, Section 8 companies are companies with charitable objects . Any company whose object is promotion of art, science, commerce , art, science, sports, education, research, social welfare, religion, charity, protection of environment Or any company which has intention to apply its profits in promoting its object. It cannot pay any dividend to its members. Section 8 companies enjoy special privileges. Thanks

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