Section 8 copmany
Basudev Munda
(Querist) 26 December 2015
This query is : Resolved
I would be interested to know :Whether section 8- company under companies act 2013, allows us to receive grants/ donations from Government, private companies, Individuals and also from Foreign agencies ( under FCRA)for the works related to social work viz. non-profit in nature.
Also, about provisions of tax exemption in this act.
Guest
(Expert) 26 December 2015
Can you please clarify, in which capacity of a company you have asked the question, and whether the company is a private limited, public limited or a PSU?
Rajendra K Goyal
(Expert) 26 December 2015
Please answer the question from expert PS Dhingra.
Basudev Munda
(Querist) 28 December 2015
The company would be a one person private company for the promotion of social enterprises and development.
Guest
(Expert) 28 December 2015
Section 8(2) is very clear, which states, as under:
"The company registered under this section shall enjoy all the privileges and be
subject to all the obligations of limited companies."
However, due to stringent norms about acceptance of deposits, a significant impact of the 2013 Act is that only those public companies which meet the prescribed net worth or turnover criteria may accept deposits from persons other than its members. Other companies can accept deposits only from its members. For acceptance of grants/ donations from foreign agencies, you will have to comply with the provisions of the FCRA.
