Section 8 company is a concept that combines the benefit of a NGO and a Corporate. It provides an substitute to the promoters to take forward the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits greater than the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Hazaribagh which are full of zip in various fields for the welfare of public at large. Our interest service includes Name Selection, Memorandum Drafting and Company Registration. We present our clients best in class services so that they are not scared with any non assent during the initial stages of there growth. In Hazaribagh we accept a maximum of 10 days get older to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally proclaim of a company ends later word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies full of zip in the social welfare and promotion of Arts, Science, Commerce, Education, Literature etc to have there name not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there pronounce may grow less with words in the same way as Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An processing which otherwise of distributing its surplus/profit accompanied by its members, applies the same in the fulfilment of its objects. That is they are not allowed to distribute any money 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 capably 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
DONATION:
A company incorporated under Section 8 can take donations from public subject to applicability of additional rules and regulations and certification form the Memorandum of Association.
If the Section 8 Company is incorporated under the definition of Public Company it can also go to members and take membership progress from such members.
Can a Section 8 Company apply for 12A and 80G Registration?
A Section 8 company like supplementary NGO can apply for 12A and 80G registration in the ventilate of 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 avowal of documents and keeping in view whatever the formalities, issue license under section 8 of the Act.
Likewise a company registered under Section 8 can convert itself into Public or private Company.