Section 8 company is a concept that combines the improvement of a NGO and a Corporate. It provides an unusual to the promoters to enhance the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits beyond the time which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Gumla which are functional in various fields for the welfare of public at large. Our combination service includes Name Selection, Memorandum Drafting and Company Registration. We provide our clients best in class services fittingly that they are not fearful with any non consent during the initial stages of there growth. In Gumla we accept a maximum of 10 days era to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally broadcast of a company ends in the same way as word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies operational in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there reveal not subside with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there herald may subside with words bearing in mind Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing 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 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 without difficulty 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 below the definition of public company.
- An OPC (One Person Company) cannot apply for License under Section 8
A company incorporated under Section 8 can take donations from public subject to applicability of extra 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 add members and accept membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like additional NGO can apply for 12A and 80G registration bearing in mind 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 verification 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.