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    Whether the provisions of CSR are applicable to section 8 companies?

    Posted By : mahimajain / Published on : 29-Mar-2023 04:55 AM / View : 280 / Comment : 2

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    Hello Professional

    Whether the provisions of CSR are applicable to section 8 companies?
    Read more on : companies section applicable provisions whether

    • Hello Mahima

      The CSR provisions apply to a company registered for a charitable purpose under Section 8 of the Companies Act, 2013. Section 135(1) of the Act states that every company having the specified net worth, turnover, or net profits must establish a CSR committee. Thus, section 8 companies must also establish a CSR committee and comply with CSR provisions when it meets the specified net worth, turnover, or net profits. 

      Hope this would help you.

      01-04-2023 / 04:40:51 AM
      Reply
    • Yes, the provisions of Corporate Social Responsibility (CSR) under the Companies Act, 2013 are applicable to Section 8 companies, also known as not-for-profit companies.

      As per Section 135 of the Companies Act, 2013, every company, including Section 8 companies, having a net worth of at least Rs. 500 crore or a turnover of at least Rs. 1,000 crore or a net profit of at least Rs. 5 crore during any financial year, is required to constitute a CSR Committee and spend at least 2% of its average net profits of the preceding three financial years on CSR activities.

      The CSR activities undertaken by Section 8 companies should be in alignment with their objectives and should be aimed at promoting social welfare, environment sustainability, or other charitable purposes as specified under the Companies Act, 2013.

      It is important to note that Section 8 companies are required to comply with all the provisions of the Companies Act, 2013, including the provisions related to CSR, and any non-compliance may result in penalties and other legal consequences.

      04-04-2023 / 09:32:53 AM
      Reply
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