What is Charitable Companies? How to form a Charitable Company under Section 8 of Indian Companies Act 2013? What are the requirements to form a Charitable Company?

 

 

Section 8 Formation of Companies with Charitable Object etc - Indian Companies Act 2013

As per Section 8 of Indian Companies Act 2013 a Charitable company can be formed by filing necessary documents with the Registrar of Companies. Earlier this kind of companies were being formed under section 25 of Indian Companies Act 1956, which is now under Section 8 of the New Act. Provision in the Indian Companies Act 2013 regarding Formation of Companies with Charitable Objects etc is as under.

 

(1) Where it is proved to the satisfaction of the Central Government that a person or an association of persons proposed to be registered under this Act as a limited company—
(a) has in its objects the promotion of commerce, art, science, sports, education, research, social welfare, religion, charity, protection of environment or any such other
object;
(b) intends to apply its profits, if any, or other income in promoting its objects;
and
(c) intends to prohibit the payment of any dividend to its members, the Central Government may, by licence issued in such manner as may be prescribed, and on such conditions as it deems fit, allow that person or association of persons to be registered as a limited company under this section without the addition to its name of the word “Limited”,
or as the case may be, the words “Private Limited” , and thereupon the Registrar shall, on application, in the prescribed form, register such person or association of persons as a company under this section.

(2) The company registered under this section shall enjoy all the privileges and be subject to all the obligations of limited companies.


(3) A firm may be a member of the company registered under this section.

(4) (i) A company registered under this section shall not alter the provisions of its memorandum or articles except with the previous approval of the Central Government.
(ii) A company registered under this section may convert itself into company of any other kind only after complying with such conditions as may be prescribed.

(5) Where it is proved to the satisfaction of the Central Government that a limited company registered under this Act or under any previous company law has been formed with any of the objects specified in clause (a) of sub-section (1) and with the restrictions and prohibitions as mentioned respectively in clauses (b) and (c) of that sub-section, it may, by licence, allow the company to be registered under this section subject to such conditions as the Central Government deems fit and to change its name by omitting the word “Limited”, or as the case may be, the words “Private Limited” from its name and thereupon the Registrar shall, on application, in the prescribed form, register such company under this section and all the provisions of this section shall apply to that company.


(6) The Central Government may, by order, revoke the licence granted to a company registered under this section if the company contravenes any of the requirements of this section or any of the conditions subject to which a licence is issued or the affairs of the company are conducted fraudulently or in a manner violative of the objects of the company or prejudicial to public interest, and without prejudice to any other action against the company under this Act, direct the company to convert its status and change its name to add the word “Limited” or the words “Private Limited”, as the case may be, to its name and thereupon the Registrar shall, without prejudice to any action that may be taken under sub-section (7), on application, in the prescribed form, register the company accordingly:
Provided that no such order shall be made unless the company is given a reasonable opportunity of being heard:
Provided further that a copy of every such order shall be given to the Registrar.


(7) Where a licence is revoked under sub-section (6), the Central Government may, by order, if it is satisfied that it is essential in the public interest, direct that the company be wound up under this Act or amalgamated with another company registered under this section:
Provided that no such order shall be made unless the company is given a reasonable opportunity of being heard.


(8) Where a licence is revoked under sub-section (6) and where the Central Government is satisfied that it is essential in the public interest that the company registered under this section should be amalgamated with another company registered under this section and having similar objects, then, notwithstanding anything to the contrary contained in this Act, the Central Government may, by order, provide for such amalgamation to form a single company with such constitution, properties, powers, rights, interest, authorities and privileges and with such liabilities, duties and obligations as may be specified in the order.


(9) If on the winding up or dissolution of a company registered under this section, there remains, after the satisfaction of its debts and liabilities, any asset, they may be transferred to another company registered under this section and having similar objects, subject to such conditions as the Tribunal may impose, or may be sold and proceeds thereof credited to the Rehabilitation and Insolvency Fund formed under section 269.


(10) A company registered under this section shall amalgamate only with another company registered under this section and having similar objects.


(11) If a company makes any default in complying with any of the requirements laid down in this section, the company shall, without prejudice to any other action under the provisions of this section, be punishable with fine which shall not be less than ten lakh rupees but which may extend to one crore rupees and the directors and every officer of the company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than twenty-five thousand rupees but which may extend to twenty-five lakh rupees, or with both:


Provided that when it is proved that the affairs of the company were conducted fraudulently, every officer in default shall be liable for action under section 447.

 

Section 3 to 20 of Indian Companies Act 2013

How to form a Company under Indian Companies Act 2013. What are the types of companies? Section 3 Formation of Company

What is memorandum of Company? What are the requirement under section 4 of Indian Companies Act 2013 in case of Memorandum of a Company? How to prepare Memorandum of a Company

What is Articles of Association of Company? What are the requirement under section 5 of Indian Companies Act 2013 in case of Articles of a Company? How to prepare Articles of a Company?

What is Act to override Memorandum and Articles of Association of Company? What is the provisions under Section 6 of Indian Companies Act 2013?

How to Incorporate a Company under Section 7 of Indian Companies Act 2013? What are the requirements to form a Company? How to Incorporate a Company?

What is Charitable Companies? How to form a Charitable Company under Section 8 of Indian Companies Act 2013? What are the requirements to form a Charitable Company?

What is effect of Registration under Section 9 of Indian Companies Act, 2013? What is effect of memorandum? What is effect of Memorandum and Articles under Section 10 of Indian Companies Act 2013?

Commencement of Business, Section 11 of Indian Companies Act 2013

What are the provisions under Section 12 of Indian Companies Act 2013 regarding Registered office of a Company? What are the penalty provisions for violation of law?

How to alter Memorandum of a Company? Section 13 of Indian Companies Act 2013 regarding changes in the memorandum of  Company

How to alter Articles of a Company? Section 14 of Indian Companies Act 2013 regarding changes in the Articles of  Company

Alteration of Memorandum and Articles to be noted in every copy. Section 15 of Indian Companies Act 2013

How to Rectify the name of a Company? Section 16 of Indian Companies Act 2013

Is it necessary to give copy of Memorandum, Articles etc to members? Penalty in case of default. Section 17 of Indian Companies Act 2013

How to convert a Registered Company? Section 18 of Indian Companies Act 2013. Conversion of Companies already registered. Procedure and Documentation

Can subsidiary company hold shares of holding Company? Section 19 of Indian Companies Act 2013. Subsidiary Company not to hold shares of its holding Company

How to serve documents to a company or its officer? What are the accepted methods? Section 20 of Indian Companies Act 2013 Service of documents

 

 

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