Not for profit – Section 8 Company

10/27/2016

Non Profit Organization

A “Not for Profit Company” is defined as a person or an association of persons proposed to be registered under this Act as a limited company having its objects as promotion of commerce, art, science, sports, education,research, social welfare, religion, charity, protection of environment or any such other object, intends to apply its profits, if any, or other income in promoting its objects and prohibits payment of dividend

 

Benefits

  • Exempted from Minimum Share Capital- Unlike Private & Public Limited Companies A section 8 Company can be registered even if they have  share capital less than the statutory requirement or no Share capital
  • Income Tax Provisions: Various benefits as per the Income Tax Act is available to a Section 8 Company
  • Exempted from CARO Provisions: Unlike other companies , section 8 Company does not fall under the category of Companies who are required to prepare their Audit report as per the CARO Provisions

Minimum Requirement

  • Its objects should be only to promote commerce ,art, science,religion,charity or any other useful object Grant of License by the Central Government
  • Company Shall not pay remuneration to its Members
  • Minimum 2 Directors

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