companies section applicable provisions whether
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.
Hello Everyone
If the company was incorporated in March 2023 in Canada by an Individual resident of India, due to non-approval of ODI, no remittance is yet made.
Please advise whether that resident individual needs to file his FLA due in July.
Dear All,
If an entity has not received any inward FDI / made overseas investments in the latest FY, do they need to submit the FLA return?
return
Hello Professional
Is a Section 8 company required to seek permission from Central
Government (“RD”) for alteration of its articles of association
prior to getting the same approved by the members by means of
special resolution in the general meeting?
government alteration articles association central permission company required seek section
Hello Professionals
What do you mean by ‘Companies with charitable purpose’ (Section 8) under the Companies Act, 2013? What are the conditions for the issue & revocation of the license of such a company by the Government?
companies license revocation such company government issue purpose charitable
Hello Professionals
In the case of an overseas subscriber and director, is the documents required to be notarised and apostilled for incorporation of a company?
notarised apostilled incorporation company required documents overseas subscriber director case
Hello Professionals
What are the minutes of a board meeting, and how should they be maintained?
Hello Professionals
In the case of an overseas subscriber and director, are the documents required to be notarised and apostilled for incorporation of a company?
notarized apostilled incorporation company required documents overseas subscriber director case
Hello Professionals
In terms of Section 73 of the Companies Act, 2013 read with Rule 2(1)(c)(vii) of Companies (Terms and conditions of acceptance of Deposit) Rules, 2014, deposits do not include receipt of money from Director of the Company, but the money received from a member is treated as a deposit. In case the deposit is taken from a person who is both a director and a member of the Company, will such receipt of money be treated as a deposit or not?
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.