Law Relating To Section 8 Companies (Non-Profit Organisation)

  • Apr
  • 30

INTRODUCTION Section 8 of the Companies Act, 2013 provides for a mechanism through which an Association can be registered as a Company, if such association is formed for promoting commerce, art, science, religion or any other useful object and intends to apply its profits/income in promoting its objects. The objective of this provision is to […]

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Incorporation of Section 8 Company (Non-profit organisation)

  • Jan
  • 30

The concept of non-profit making company is quite old in India. In erstwhile Companies Act, 1956 it was regulated by Section 25 and that is why it was popular as Section 25 Company. However in Companies Act 2013 provisions related to non-profit making company are given in Section 8 read with Rule 19 and 20 of Companies (Incorporation) Rules, 2014. Such organization can be registered as trusts, societies, or as a non-profit company incorporated under Section 8 of the Companies Act, 2013.

This article is meant for providing information regarding the procedures and process for incorporation of a non-profit making company as given in Section 8 read with Rule 19 and 20 of Companies (Incorporation) Rules, 2014.

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More than 20 years experience of Company Law including Shifting of registered Office, Change of Objects Clause, Change of Name of the company, Public & Rights Issues, Private Placement, Convening & Holding of General Meetings & Board Meetings, Maintenance of all Secretarial records, Compliance of Provisions of Listing Agreement of Stock-Exchanges, S.E.B.I. Guidelines & Reserve Bank of India Directions.Good Exposure of Accounts, Tax Laws, Financial Services, Money management, Stock Broking, Consumer Protection Laws and Business Administration.Liasioning with Registrar of Companies, Company Law Board, Various Stock Exchanges, Consumer Court & Director General of Foreign Trade.

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There have been considerable changes in company law in the last few years. And the changes have put more responsibility on the shoulders of Directors. A company has to comply with a lot of procedures as covered under companies Act. Listing Agreement, SEBI Act and Regulations. Moreover, Corporate Governance is now actively being implemented in various corporate houses and is going to be compulsory by the Government in a phased manner.

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