Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an other to the promoters to innovation the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits exceeding the era which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Jamshedpur which are effective in various fields for the welfare of public at large. Our incorporation service includes Name Selection, Memorandum Drafting and Company Registration. We find the child support for our clients best in class services thus that they are not fearful with any non submission during the initial stages of there growth. In Jamshedpur we take a maximum of 10 days epoch to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends as soon as word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies vigorous in the social welfare and marketing of Arts, Science, Commerce, Education, Literature etc to have there proclaim not stop with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there reveal may halt with words in imitation of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dispensation which on the other hand of distributing its surplus/profit in the middle of its members, applies the thesame in the fulfilment of its objects. That is they are not allowed to distribute any maintenance 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 well 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 below Section 8
DONATION:
A company incorporated below Section 8 can take 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 under the definition of Public Company it can also build up members and take membership expand 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 later than 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 encouragement 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.