Section 8 company is a concept that combines the pro of a NGO and a Corporate. It provides an complementary to the promoters to early payment the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits greater than the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in East Singhbhum which are operational in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We meet the expense of our clients best in class services so that they are not scared with any non assent during the initial stages of there growth. In East Singhbhum we take a maximum of 10 days grow old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally state of a company ends like word Limited or Private Limited, but Companies Act, 2013 provides for a license under Section 8 to the companies on the go in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there herald not terminate with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may halt with words with Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An presidency which on the other hand of distributing its surplus/profit along with its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any child maintenance in the form of dividend or gain sharing. Company registered below Section 8 is a Non Profit Organization
Is Section 8 company Public company or Private Company?
Section 8 Company can be incorporated both as a public as skillfully as private company.
- A minimum of 2 members are required if the company is incorporated under the definition of private company and a minimum of 7 members shall be required if the company is incorporated below the definition of public company.
- An OPC (One Person Company) cannot apply for License below Section 8
DONATION:
A company incorporated under Section 8 can accept donations from public subject to applicability of other rules and regulations and authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also go to members and accept membership enhance from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like new NGO can apply for 12A and 80G registration once Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company below the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due upholding of documents and keeping in view everything the formalities, issue license under section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.