Non-government /Non -profit organisation under Companies Act 2013

Non Government Organisation / Non Profit organisation

Section 8 of Companies act, 2013:

1. The central govt allows certain persons to get registered under this section as Limited company:

- if its object is promoting commerce, art, science, sports, religion etc.,

- aiming to apply its profits to promote its objects.

- intent to prohibit payment of divided.

2. No addition of word  "limited" r "private limited" as  last word in its name.

3. A FIRM/PARTNRRSHIP CAN BE ADMITTED AS A MEMBER of section 8 company.

4. Alternation MOA/AOA require Central Govt approval. (Powers delegated to ROC).

5.  Section 8 company can be amalgamated only  with another section 8 company having SIMILAR OBJECTS.

6. In case of winding up, surplus if any should be transferred to "REHABILITATION AND INSOLVENCY FUND".

Note:

** section 8 companies get benefits similar to NGOs registered under Trust act, societies registration act.,

** partnership firm can become a member. This is not possible in any other type of company registered under companies act, 2013.

** Amalgamation is possible only with similar objects and not any other objective though it falls under section category.

** On winding up surplus should be deposited with CG and not distributed among members. However, remaining assets can be transferred to another sec. 8 co with CG approval.

Key benefits of SECTION 8 COMPANY:

1. Certain Privilege under companies act, 2013.

2. Non- application of CARO REPORT, 2003.

3. REGISTER firm can be a member.

4. Tax deduction for donars to the company under 80G of Income  tax act, 1961 with certain restrictions.

5. Section 8 companies are not chargeable under wealth act, 1957.

Note:
please send me other benefits if you know.

**section 8 Companies are not required to have minimum paid - up capital. ( this point i do not hav a legality to prove, if you knows kindly quote a section).