Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an unconventional to the promoters to take forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the epoch which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Garhwa which are committed in various fields for the welfare of public at large. Our fascination service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services appropriately that they are not anxious with any non submission during the initial stages of there growth. In Garhwa we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally declare of a company ends later word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies dynamic in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there proclaim not halt with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there proclaim may decrease with words following Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An management which then again of distributing its surplus/profit accompanied by its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any keep 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 competently as private company.
- A minimum of 2 members are required if the company is incorporated below the definition of private company and a minimum of 7 members shall be required if the company is incorporated under the definition of public company.
- An OPC (One Person Company) cannot apply for License under Section 8
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of other rules and regulations and endorsement form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and accept membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like other NGO can apply for 12A and 80G registration like Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license under Section 8, and the Ministry of Corporate Affairs can after due pronouncement of documents and keeping in view everything the formalities, issue license below section 8 of the Act.
Likewise a company registered below Section 8 can convert itself into Public or private Company.