Under which section of the Companies Act 2013 a company can be formed with charitable objects?

Therefore, Section 8 Company or Section 25 Company is a company registered under the Companies Act, 2013 for charitable or not-for-profit purposes.

Can a company for charitable work be formed under company Act 2013?

As per Section 8(1a, 1b, 1c) of the new Companies Act, 2013, a person can establish Section 8 company for “promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object”, provided it “intends to apply its profits, if any, or other …

Which section of the Act provides for formation of companies with charitable objects?

Formation of Section 8 Company

A person or an association of persons can make an application to the Registrar of Companies using requisite forms to form a company with charitable objectives under Section 8 of Companies Act.

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What is Section 8 of the Companies Act 2013?

A company is referred to as Section 8 Company when it registered as a Non-Profit Organization (NPO) i.e. when it has motive of promoting arts, commerce, education, charity, protection of environment, sports, science, research, social welfare, religion and intends to use its profits (if any) or other income for …

What is Section 25 of Companies Act?

Section 25 in The Companies Act, 1956. 25. Power to dispense with” Limited” in name of charitable or other company. … (4) A firm may be a member of any association or company licensed under this section, but on the dissolution of the firm, its membership of the association or company shall cease.

What is Section 4 of Companies Act, 2013?

According to Section 4 of the Companies Act, 2013, the MoA is a legal document specifying information about the shareholding of the company. It also outlines the scope of the company’s business activities. Further, it is prepared for the purpose of registering the company. It is also called the charter of the company.

Can a Section 25 company accept donations?

Depending on how it is registered under the Income-Tax Act, companies could benefit from income-tax exemptions, or from the provision wherein people donating money to these companies receive income deductions in their income-tax liability. Such companies are also exempt from stamp duty payments.

Can a Section 8 company be listed?

Yes, a Section 8 Company can be converted into any other company including OPC as prescribed under Section 8(4)(ii) read with Rules 21 and 22 of Companies (Incorporation) Rules, 2014. This is further subject to restrictions and compliances as per other applicable laws including Income tax Act, 1961.

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Which is better trust or Section 8 company?

The cost factor involved in trusts are critically low as compared to a company under section 8 of the company’s act. The transparency in working is very low in trusts as compared to a Section 8 Company. The grant of subsidies to trust is very less as compared to the company under section 8.

Is Section 8 company a private company?

Section 8 Company will be governed by the Board of Directors, similar to a Private Limited Company. During the process of incorporation, the DSC is obtained for the proposed directors.

Are you a company registered under Section 8 of Companies Act, 2013 or section 25 of Companies Act 1956?

Section 8 Company is a Company that is licensed under Section 8 of the Companies Act, 2013 (the Act), erstwhile known as the Section 25 Company under the Companies Act, 1956, which had the main object; For promoting research, social welfare, religion, charity, commerce, art, science, sports, education, and the …

Under which section a company is registered?

Company Limited/Private Limited, being a Company registered under the Companies Act, 1956, as limited company are restricted to those specified in section 25, sub-section (1), clause (a) of the said Act and that it intends to apply its profits, if any, or other income in promoting its objects and to prohibit the …

Which section of the Companies Act, 2013 provides that of holding company must include the particulars of subsidiary company?

Section 2(87) of the Companies Act, 2013 defines the Subsidiary Company. The subsidiary company is the company that is controlled by the holding or parent company. It is defined as a company/body corporate where the holding company controls the composition of the Board of Directors.

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What is Section 24 of Companies Act 2013?

Section 24 of the Companies Act, 2013: Power of Securities and Exchange Board to regulate issue and transfer of securities, etc. Section 24: Power of Securities and Exchange Board to regulate issue and transfer of securities, etc.

What is Section 23 of Companies Act 2013?

Section 23 (1) A public company may issue securities- (a) to public through prospectus (herein referred to as “public offer”) by complying with the provisions of this Part; or (b) through private placement by complying with the provisions of Part II of this Chapter; or (c) through a rights issue or a bonus issue in …

What is Section 8 non profit company?

According to section 8(1)(a), (b) and (c) of the Indian Companies Act, 2013, a section-8 company can be established ‘for promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other object’, provided the profits, if any, or other income is …