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    Difference Between NGO and PVT Co

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    CA Pushpak Mishra
    A Section 8 company differs from a private company in several key ways: 1) A Section 8 company can be established for promoting any useful purpose, while a private company is established for profit making. 2) Section 8 companies are not permitted to generate revenue or distribute profits as dividends, whereas private companies must generate revenue through product/service sales. 3) Section 8 companies have more flexibility in terms of the number of directors and frequency of board meetings, and are exempt from certain other regulatory requirements that private companies must adhere to. 4) Section 8 companies may receive tax exemptions if they utilize grants for permitted activities, but private companies do not receive such exemptions.

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    Difference Between NGO and PVT Co

    Uploaded by

    CA Pushpak Mishra
    25 views6 pages
    A Section 8 company differs from a private company in several key ways: 1) A Section 8 company can be established for promoting any useful purpose, while a private company is established for profit making. 2) Section 8 companies are not permitted to generate revenue or distribute profits as dividends, whereas private companies must generate revenue through product/service sales. 3) Section 8 companies have more flexibility in terms of the number of directors and frequency of board meetings, and are exempt from certain other regulatory requirements that private companies must adhere to. 4) Section 8 companies may receive tax exemptions if they utilize grants for permitted activities, but private companies do not receive such exemptions.

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    Difference between NGO and Pvt co..pptx

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    A Section 8 company differs from a private company in several key ways: 1) A Section 8 company can be established for promoting any useful purpose, while a private company is established for profit making. 2) Section 8 companies are not permitted to generate revenue or distribute profits as dividends, whereas private companies must generate revenue through product/service sales. 3) Section 8 companies have more flexibility in terms of the number of directors and frequency of board meetings, and are exempt from certain other regulatory requirements that private companies must adhere to. 4) Section 8 companies may receive tax exemptions if they utilize grants for permitted activities, but private companies do not receive such exemptions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    25 views6 pages

    Difference Between NGO and PVT Co

    Uploaded by

    CA Pushpak Mishra
    A Section 8 company differs from a private company in several key ways: 1) A Section 8 company can be established for promoting any useful purpose, while a private company is established for profit making. 2) Section 8 companies are not permitted to generate revenue or distribute profits as dividends, whereas private companies must generate revenue through product/service sales. 3) Section 8 companies have more flexibility in terms of the number of directors and frequency of board meetings, and are exempt from certain other regulatory requirements that private companies must adhere to. 4) Section 8 companies may receive tax exemptions if they utilize grants for permitted activities, but private companies do not receive such exemptions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    DIFFERENCE BETWEEN SECTION

    8 COMPANY & A
    PUBLIC/PRIVATE COMPANY
    Private Company
    Areas of Comparison Section 8 Company

    A section 8 company can be


    registered as a limited company for
    promoting commerce, art, science,
    A private/Public limited company
    religion, charity or any other useful
    Permitted scope of Activities is always established for profit
    purpose.
    making objective.
    The Company needs to apply its
    profits if any or other income in
    promoting its objects.

    The main components of the


    The main components of the
    Financial Statement of any
    financial statement of a section 8
    company other than section 8
    Financial Statements companies are-Income &
    companies are-Statement of Profit
    Expenditure Account, Receipts &
    & Loss, Balance Sheet & Cash flow
    Payment Account & Balance Sheet.
    Statement.

    A Section 8 company is not


    A company other than section 8
    permitted to sell any product or
    company must generate revenue
    Revenue services to generate revenue.
    by selling any product or services.
    Any donation or grants received are
    recorded as revenue.
    Areas of Comparison Section 8 Company Private Company

    The profit generated by a


    No section 8 company is permitted company other than a section 8
    Dividend distribution to distribute the surplus earned as company can be distributed as
    dividend. dividend between the
    shareholders.

    There is no limit for the maximum


    The maximum number of directors
    number of directors for a Section 8
    are restricted to 15 in case of a
    company under section 149(1)(b).
    limited or private limited company
    Number of Directors However as per section 149(1)(a)
    & to increase the number of
    the minimum number of directors
    directors the company must pass
    are applicable & same as a
    a special resolution.
    Limited company.

    Number of Board Meetings Section As per section 173(1) of A company other than a Section 8
    173(1) & (5) Companies Act ,2013 the company must hold minimum of 4
    minimum number of Board board meeting in a year & the
    meeting for a section 8 company interval between each meeting
    is 2 in a year subject to not less must not more than 120 days.
    than 90 days interval between
    each meeting. The company has
    to hold the meetings bi-annually.
    Areas of Comparison Section 8 Company Private Company/Public company

    Interest Charged-section Section 8 company in which 26% or


    186(7) more of paid-up share capital is
    held by the central government or
    one or more state governments or
    both, may give interest-free loan for
    funding industrial R&D projects in
    furtherance of its objects as stated
    in its Memorandum of Association.

    No of directorships (sec 165) Section 165 which refers to the limit As per section 165 no person can be
    of maximum number of directorship appointed as a director in more than 20
    which is not applicable for a companies in case of a public
    Section 8 company. company
    Consent to act as a Section 152 which refers to the Every person shall furnish to the
    director-Section 152(5) consent of the director is not company his consent to act as a
    applicable on section 8 company. director. The consent must be furnished
    on or before his appointment as a
    director. The consent letter needs to be
    filed with ROC within 30 days of
    appointment.
    Areas of Comparison Section 8 Company Private Company/Public company

    Tax exemption If a section 8 company utilizes 85% No such benefit is applicable for a
    of the grants received on the company other than a section 8
    same year then the surplus earned company.
    gets tax exemption.

    Company Secretary -Section 2(24) A section 8 company can appoint It’s compulsory for a company
    any person as a company other than a section 8 company to
    secretary. It's not mandatory for appoint a company secretary who
    that person to be a member of must be a member of ICSI.
    ICSI.

    Minimum Paid up share capital The minimum paid up share The amount of minimum paid up
    capital is not applicable. share capital must be satisfied as
    per section 2(68) & 2(71).
    THANK-YOU

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