Скачать или смотреть 🎥 Formation of a Company with Charitable Objects in Company Law Explained! 📜

Welcome to our channel! In this video, we explore the Formation of a Company with Charitable Objects under company law. Understanding this process is essential for anyone looking to establish a nonprofit organization that promotes charitable activities.

🔍 What You'll Learn:

Definition & Purpose:
Company with Charitable Objects: Also known as a Section 8 company under the Companies Act, 2013, it is formed with the objective of promoting commerce, art, science, sports, education, research, social welfare, religion, charity, protection of the environment, or any such other objective.

Purpose: These companies operate for the promotion of specific charitable objectives and do not distribute profits to shareholders.

Key Aspects:
Eligibility and Objectives:

Non-Profit Purpose: The primary objective must be to apply its profits, if any, or other income towards promoting its objectives and prohibiting the payment of any dividend to its members.

Charitable Goals: Activities must align with charitable purposes such as education, social welfare, healthcare, environmental protection, and more.

Incorporation Process:

Name Approval: Apply for name approval with the Registrar of Companies (RoC). The name should reflect the charitable nature of the company and end with "Foundation," "Forum," "Association," "Federation," "Chambers," "Confederation," etc.

Drafting MOA and AOA: Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) outlining the company's objectives, governance structure, and internal regulations.

Application for License: File Form INC-12 with the RoC along with the MOA, AOA, financial statements, and a declaration confirming adherence to the charitable objectives.

License under Section 8: Upon satisfactory review, the RoC grants a license under Section 8, permitting the company to function as a non-profit organization.

Incorporation Form: Submit Form SPICe (INC-32) along with the necessary documents and the Section 8 license to incorporate the company officially.

Certificate of Incorporation: Once approved, the RoC issues a Certificate of Incorporation, marking the formation of the company.

Legal Framework:
Statutory Provisions: The Companies Act, 2013 and related regulations provide the legal framework for the formation and operation of Section 8 companies.

Compliance Requirements: These companies must comply with statutory requirements, including filing annual returns, maintaining proper financial records, and adhering to specific operational guidelines.

Legal Implications:
Tax Benefits: Section 8 companies are eligible for various tax exemptions and benefits under the Income Tax Act, subject to compliance with specific conditions.

Governance and Accountability: These companies are subject to stringent governance norms to ensure transparency and accountability in their operations.

Case Law:
Notable Cases: Examination of judicial decisions that have addressed issues related to the formation and operation of Section 8 companies.

Interpretation: Analysis of how courts have interpreted the statutory provisions governing charitable companies.

Practical Examples:
Application in Charitable Activities:

Real-world examples illustrating the impact of Section 8 companies on promoting social welfare, education, and environmental protection.

Tips for founders on ensuring compliance and effective management of charitable objectives.

📚 Key Topics:

Detailed explanation of the formation process and legal basis for companies with charitable objects.

Analysis of the implications and significance of Section 8 companies in promoting charitable activities.

Case studies and practical insights into the application of these principles.

💡 Why This Matters: Understanding the formation of a company with charitable objects is essential for anyone involved in nonprofit organizations, social entrepreneurship, or corporate social responsibility. It ensures that the entity operates within the legal framework while achieving its charitable goals.

This video is inspired by Channel : CH 26 IIT KANPUR 03 / ‪@sprabha26‬

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