Section 8 company is a concept that combines the help of a NGO and a Corporate. It provides an marginal to the promoters to proceed the idea of Social cause on a much larger scale. Giving NGO a corporate form has various benefits beyond the get older which can be en cashed by incorporating a Section 8 Company.
We have incorporated several Section 8 companies in Koderma which are in force in various fields for the welfare of public at large. Our amalgamation service includes Name Selection, Memorandum Drafting and Company Registration. We offer our clients best in class services appropriately that they are not troubled with any non consent during the initial stages of there growth. In Koderma we accept a maximum of 10 days times to incorporate a Section 8 Company.
WHAT IS SECTION 8 LICENSE?
Generally name of a company ends subsequently word Limited or Private Limited, but Companies Act, 2013 provides for a license below Section 8 to the companies involved in the social welfare and publicity of Arts, Science, Commerce, Education, Literature etc to have there herald not fall with the word Limited or Private Limited. These organizations are called as Non-Profit Organizations and there broadcast may fall with words later Association, foundation etc.
What is a Non-Profit Organization (NPO)?
An dealing out which otherwise of distributing its surplus/profit along with its members, applies the similar 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 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 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 accept donations from public subject to applicability of extra rules and regulations and official recognition form the Memorandum of Association.
If the Section 8 Company is incorporated below the definition of Public Company it can also increase members and take membership encroachment 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 same way as 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 announcement 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.