This document discusses non-profit companies registered under Section 8 of the Indian Companies Act. It defines a Section 8 company as a non-profit organization registered to promote arts, science, commerce, sports, education, research, social welfare, religion, or other charitable purposes. Key features mentioned include limited liability status, exemption from minimum capital requirements, and tax deductions for donors. The document outlines the steps for registering a Section 8 company, including minimum director and shareholder requirements, name approval, memorandum and articles of association filing, and registration fees. It also discusses grounds for revoking a Section 8 company's charter and associated penalties.

1. THE COMPANIES ACT 2013 (
SECTION 8 )
previously it was companies act 1956 ( SECTION 25 )
Muthuraj K

2. What Is a Company?
 “ A Company is a legal entity formed by a
group of Individuals to Engage in and operate
a Business enterprise”
 Definition
 Companies act India “ A registered
association, which is an artificial legal Person
having an Independent legal entity with a
common continuous succession, a common
seal for its signature, a common capital
comprised of transferable share and carrying
limited Liability

3. Types Of Companies
 Profit Purpose For Social Welfare
 Private Company Non Profit
Company(Section 8)
 Charitable company
 Public Company
 LLP( Limited Liability Company)
 OPC ( One Person Company )

4. MEANING OF 'CHARITABLE AND
RELIGIOUS PURPOSE'
 The 'Charitable purpose' includes relief of the
poor, Education, medical relief and any other
object of general public utility.
 'Religious purposes' are necessarily
associated with religion. Religious purpose
includes the development, support or
broadcast of religion and its belief.

5. Non Profit Companies( Section 8)
 A section 8 company is an company which is
registered as an Non Profit Organization / Company
Under Campanies act
 There a 3 conditions to create a NPO
 1) A Company which has its objects to “ Promotion
of Arts, Science, Commerce, Sports, Education,
Research, Social Welfare, Religion, Charitable
purpose, protection of Environment or any such
others object”
 2) Income earned should be applied in above
activities.

6. Who can form a Section 8
Company?
 Any person or association of persons
 Any Existing Company
 One Person company can not be a sec- 8
Company.

7. Key Benefits of NPO Company
 Many Privileges and Exemptions under
company Law
 Exemption from requirement of minimum paid
up capital
 Exemption of Stump duty for registration.
 Tax deductions to the donors of the company
U/S 80G of the Income Tax Act
 Separate Legal Entity
 Credible( Most Trustable compared to
Societies and Trusts)

8.  It has More Stringent regulations such as “ No
change in MOA / AOA can be done )
 Not title required before for after( like Pvt Ltd/ Public
Ltd )

9. Features
 Limited Company { But No restricted to add
Pvt Ltd or Public Ltd}
 Licensed Company
 Prior Approval of Regional Directors
{Appointed By C G}
 Can not be converted in OPC

10. Exemptions
Purpose NPO Profit
Notice of General Meeting 14 Days 21 Days
Exemption from Section 149/ 150 Independe
nt
Director
Section 165 Not Applicable (
Directors )
No Limit( 21st) 20
Quorum 8 Directors or
¼ of total
2/3

11. Steps in Registration
 Minimum 2 Director for private Company & 3 Directors
for Public company.
 Minimum 2 shareholders for Private Company & 3
Directors for Public Company
 The Directors & Shareholders can be a same Person
 List of Members proposed for Directors
 DIN( Director Identification Number)
 DSC ( Digital Signature Certificate ) for Two of the
Directors

12. Steps in Registration
 Name Availability for Proposed Company
A)To Obtain Name approval letter ( form 1A to
Registrar of Companies )
B)6 Names in preferential order may be proposed in
single application
 Object must be Lawful
 Source of Income and estimates of Annul Income and
Expenditure.
 Preparation of MOA & AOA( Form 13)
 Declaration of CA/ CS
 Affidavit from Lawyer ( Form 14)

13.  Registration Fee:- A draft of Paid treasury challan of
5001/-
 Finally will get Certificate with Rule and Regulations
( form 16)

14. Revoke of Chartable company
( By Regional Director )
 Violated Section 8 ( if Crossed 3 Conditions )
 Violated the Conditions mentioned in the
License
 Violating the Object of the Company
 Fraudulent Activities ( Bank Loans and cheating
)
 If the company is working against public
interest.

15. Penalty
 If any of the conditions of section 8 breached then
company will have to pay penalty of minimum 10 Lac
to max 10 Core rupees.
 Every officer in default “ will have to penalty min 25K
to 25 Lacks or they will liable for 3 years of
imprisonment or both

16. Thank
You