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WHAT IS SECTION 8 NGO ( COMPANY )
Section 8 Company or a Non-Profit organisation (NPO) is a Company established for promoting commerce, art, science, religion, sports, education, research activities, charity or any other useful social object, provided the profits and donations is applied for promoting only the objects of the company and no dividend is paid to its members or owners.
The term No Profit does not mean that the Company cannot generate profit or income, but what it means is applying the income for 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 benefitted out of those profits.
Can Section 8 accept donations?
Section 8 company can get registered under section 80G and 12A of the Income Tax Act, 1961 subject to fulfilment of applicable conditions. Thus, a Section 8 company is eligible to receive donations similar to a Trust and apply the same in furtherance of its objects.
Who is the owner of Section 8 company?
In India, the Section 8 Company is regulated by the Indian Companies Act, 2013 (and the amendments thereof) and the rules & regulations that are made thereunder and it is administered by the Ministry of Corporate Affairs, Government of India through the Offices of Registrar of Companies ('RoC') in each of the state of ...
Can a Section 8 company make profit?
Charitable objectives: Section 8 companies do not aim to make profits. ... No minimum share capital: Section 8 companies, unlike all other companies, do not require a prescribed minimum paid-up share capital. Limited liability: Members of these companies can only have limited liability.
Is GST applicable to Section 8 company?
While the definition of 'taxable person under GST' includes a trust, society, or Section 8 company, as long as these entities are not engaged in economic activity including trade and commerce, they cannot be treated as a taxable person under GST.
What are the advantages of Section 8 company?
Now let us understand various advantages of Section 8 Company Registration :
- 1) Tax Exemption. ...
- 2) No minimum capital requirement. ...
- 3) No stamp duty payable. ...
- 4) Separate Legal entity. ...
- 5) Credible. ...
- 6) No title required.
Is CSR mandatory for Section 8 companies?
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