Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an substitute to the promoters to progress the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits greater than the grow old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Godda which are committed in various fields for the welfare of public at large. Our engagement service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services consequently that they are not troubled with any non submission during the initial stages of there growth. In Godda we accept a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends later than word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies operating in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there name not stop 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 direction which otherwise 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 grant in the form of dividend or profit sharing. Company registered under 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 under 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 below Section 8 can accept donations from public subject to applicability of other rules and regulations and official approval form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also accumulate members and accept membership fee from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like extra NGO can apply for 12A and 80G registration next Income Tax Department.
CONVERSION FROM OR INTO SECTION 8 COMPANY:
Any company under the definition of Public or Private company can apply for license below Section 8, and the Ministry of Corporate Affairs can after due confirmation of documents and keeping in view anything the formalities, issue license below section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.