Section 8 company is a concept that combines the lead of a NGO and a Corporate. It provides an option to the promoters to go ahead the idea of Social cause upon a much larger scale. Giving NGO a corporate form has various benefits exceeding the become old which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Khunti which are functional in various fields for the welfare of public at large. Our raptness service includes Name Selection, Memorandum Drafting and Company Registration. We pay for our clients best in class services consequently that they are not terrified with any non agreement during the initial stages of there growth. In Khunti we take a maximum of 10 days become old to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally reveal of a company ends similar to 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 promotion 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 state may decrease with words in the ventilate of Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An organization which then again of distributing its surplus/profit along with 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 profit 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 under 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 authorization form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also accumulate members and accept membership early payment 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 when 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 upholding of documents and keeping in view all 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.